Washington – In a major move towards cutting federal spending, the Trump administration announced on Sunday that it will be placing a significant number of employees at the U.S. Agency for International Development (USAID) on leave and eliminating 2,000 U.S.-based staff positions. This decision, which aligns with President Donald Trump’s and cost-cutting ally Elon Musk’s goal of reducing the size of the government, marks one of the biggest steps taken to gut the agency in its six decades of existence.
The move comes after a federal judge allowed the administration to proceed with its plan to remove thousands of USAID employees from their positions both within the United States and globally. The decision was made despite pleas from employees in a lawsuit to temporarily block the government’s plan. U.S. District Judge Carl Nichols rejected these pleas, allowing the administration to move forward with their decision.
Effective from 11:59 p.m. EST on Sunday, February 23, 2025, all USAID direct hire personnel, with the exception of designated personnel responsible for mission-critical functions, core leadership, and/or specially designated programs, will be placed on administrative leave worldwide. This decision was communicated to USAID workers through notices that were viewed by The Associated Press. Along with this, the agency also announced a reduction in force that would result in the elimination of 2,000 U.S.-based staff positions. This means that many of the employees who are being placed on leave will also soon lose their jobs.
However, the Trump appointee running USAID, Deputy Administrator Pete Marocco, has stated that 600 mostly U.S.-based staffers will be kept on their jobs for the time being to organize travel for USAID employees and their families who are stationed abroad. There has been no response from USAID or the State Department to messages seeking comment on this development.
This move marks a significant escalation in the month-long campaign to dismantle the agency, which has already seen the closure of its headquarters in Washington and the termination of thousands of aid and development programs across the globe. The decision to freeze all foreign assistance, which has been put forth by Trump and Musk, has been met with criticism as they claim that USAID’s work is wasteful and serves a liberal agenda.
Several lawsuits have been filed against the government by government workers’ unions, USAID contractors, and others, who argue that the Trump administration lacks the constitutional authority to eliminate an independent agency or congressionally funded programs without the approval of lawmakers.
This decision by the Trump administration goes against decades of U.S. policy, which has recognized aid and development work overseas as a crucial tool for national security by promoting stability, economic growth, and building alliances. USAID’s work has been an essential aspect of U.S. “soft power” in winning influence abroad.
In addition to this, hundreds of USAID contractors have received generic form letters of termination in the past week, as seen in copies viewed by AP. This blanket approach to notifying contractors, without including their names or positions, could make it difficult for them to receive unemployment benefits, as noted by workers.
In a separate lawsuit related to USAID, a different judge has temporarily blocked the foreign funding freeze and has admonished the administration for continuing to withhold aid despite the court order. The judge has instructed the administration to at least temporarily restore funding to programs worldwide.
The decision to place USAID employees on leave and eliminate staff positions is seen as a significant blow to the agency and its crucial work in promoting development and aid around the world. It remains to be seen how this decision will impact the agency’s ability to carry out its mission and continue its vital work.
