A federal US judge on Friday denied a request from two labor unions that sought to block President Donald Trump’s administration from placing thousands of US Agency for International Development (USAID) employees on administrative leave and recalling many stationed abroad.

Judge Carl Nichols of the US District Court for the District of Columbia acknowledged concerns about widespread terminations but concluded that USAID was “still standing” and thus any harm could be addressed through financial compensation rather than court intervention.

He also noted that federal laws provide domestic USAID employees, or their union representatives, the right to challenge administrative leave decisions, suggesting that the district court likely lacks jurisdiction over the unions’ claims. Judge Nichols further determined that the Trump administration had presented a reasonable justification for its actions, finding that they were “essential to its policy goals.”

He stated:

Weighing plaintiffs’ assertions on these questions against the government’s is like comparing apples to oranges. Where one side claims that USAID’s operations are essential to human flourishing and the other side claims they are presently at odds with it, it simply is not possible for the Court to conclude, as a matter of law or equity, that the public interest favors or disfavors an injunction.

The ruling marks a reversal from Judge Nichols’ earlier decision that temporarily halted the administration’s actions and even reinstated some sidelined employees. Judge Nichols acknowledged that the unions’ constitutional and Administrative Procedure Act challenges to USAID’s dismantling could gain traction over time, but he stated that for now he could only decide on the employment-related claims.

Immediately after returning to office in January, Trump issued an executive order that placed a 90-day freeze on nearly all foreign aid. The plaintiff unions argued that the freeze on foreign aid and the planned terminations at USAID have already had catastrophic humanitarian consequences and that the move would severely damage the country’s political and contractual relationships with allies and on-the-ground organizations.

The government, however, has consistently contended that any attempt to block its restructuring of USAID would create its own set of problems. Referring to the executive order, Judge Nichols said that in the president’s view, the country’s “foreign aid industry” was out of step with American interests and “antithetical to American values and to world peace.”

Established in 1961, USAID had served as the country’s primary foreign aid organization for over six decades. According to Pew Research, in fiscal year 2023, USAID distributed nearly $44 billion in foreign aid, accounting for about three-fifths of total US aid spending that year. While supporters of USAID’s work argue it has played a pivotal role in advancing US soft power initiatives over the decades, critics have for decades questioned the quantity and necessity of US foreign aid spending. These critiques reached a boiling point during the 2024 presidential campaign, with Trump frequently arguing the US should prioritize domestic spending.