A pair of labour organizations representing workers at the United States Agency for International Development, have filed a lawsuit against President Donald Trump, challenging his administration’s efforts to dismantle the long-standing humanitarian agency.
Multiple sources revealed to CNN that fewer than 300 agency employees are expected to be retained, while many others face indefinite leave or termination.
The lawsuit also targets the administration’s broad freeze on foreign assistance, a move that has brought critical global humanitarian operations to a standstill, forcing thousands of contractors into furloughs or layoffs.
Filed in federal court in Washington, D.C., the lawsuit was brought by Democracy Forward and Public Citizen Litigation Group on behalf of the American Foreign Service Association and the American Federation of Government Employees.
It marks the first legal action taken against the swift measures imposed on USAID by the Trump administration.
As the majority of USAID’s workforce prepared for administrative leave starting Friday night, or outright termination in the case of contractors, an internal email indicated that fewer than 300 essential personnel would remain, a significant reduction in staff.
The court’s response to the emergency request remains unclear as the 11:59 p.m. ET deadline approaches.
Attorneys representing the labour groups have asked the court to reverse the administration’s actions and stop further steps to dissolve USAID while the case is being heard.
The lawsuit, which also names then-Secretary of State, Marco Rubio and Treasury Secretary Scott Bessent as defendants, claims the president exceeded his authority, violating both federal law and the Constitution.
According to the lawsuit, only Congress has the legal power to dismantle a federal agency like USAID.
“Not a single one of defendants’ actions to dismantle USAID were taken pursuant to congressional authorization,” the lawsuit asserts. “And pursuant to federal statute, Congress is the only entity that may lawfully dismantle the agency.”
The groups argue that Trump’s actions amount to an unconstitutional power grab.
“President Trump’s actions to dissolve USAID exceed presidential authority and usurp legislative authority conferred upon Congress by the Constitution, in violation of the separation of powers,” the lawsuit claims.
AFSA President, Tom Yazdgerdi, voiced his concerns, stating, “The dismantling of USAID, including its Foreign Service members, has thrown dedicated public servants—and their families—into chaos and uncertainty. These professionals have spent their careers advancing America’s interests abroad, only to find their livelihoods upended overnight.”
He warned that the implications go beyond personal careers. “The consequences of this disruption go far beyond individual careers—it weakens U.S. leadership and undermines global stability worldwide. AFSA will continue to defend its members and pursue all options to protect this essential workforce,” Yazdgerdi added.
President and CEO of Democracy Forward, Skye Perryman, said, “The Trump administration’s USAID is part of a coordinated campaign to undermine the will of Congress and isolate America in the world.”
On Monday, Trump argued that he did not need congressional approval to shut down USAID, raising concerns among legal experts who maintain that the president lacks the authority to unilaterally dismantle independent federal agencies.
“Not when it comes to fraud. If there’s fraud, these people are lunatics,” Trump said when questioned by CNN’s Jeff Zeleny about his capacity to impose major changes on USAID. “We just want to do the right thing. It’s something that should have been done a long time ago.”
The lawsuit emphasizes the immediate and devastating consequences of halting USAID’s work, including the suspension of foreign assistance and mass layoffs of contractors.
According to the plaintiffs, these actions have sparked a global humanitarian crisis and endangered U.S. national security.
“These actions have generated a global humanitarian crisis by abruptly halting the crucial work of USAID employees, grantees, and contractors. They have cost thousands of American jobs. And they have imperiled U.S. national security interests,” the lawsuit stated.
Attorneys detailed the real-life consequences, writing, “Halting USAID work has shut down efforts to prevent children from dying of malaria, stopped pharmaceutical clinical trials, and threatened a global resurgence in HIV. Deaths are inevitable. Already, 300 babies that would not have had HIV, now do. Thousands of girls and women will die from pregnancy and childbirth. Without judicial intervention, it will only get worse.”
