President Donald Trump scored a legal victory after a federal judge dismissed a lawsuit challenging his administration’s restructuring of the U.S. Agency for International Development (USAID). The ruling, delivered by Judge Carl J. Nichols, effectively allows the administration to move forward with plans to significantly downsize the agency, a move that had drawn criticism from federal employee unions and foreign service advocates.

The lawsuit, filed on February 6, 2025, by the American Foreign Service Association and the American Federation of Government Employees, alleged that the Trump administration violated federal employment protections. The plaintiffs argued that placing thousands of USAID employees on administrative leave not only circumvented proper labor procedures but also posed risks to the safety of personnel working in overseas environments.

Judge Nichols, a Trump appointee, initially issued a temporary restraining order to halt the removal of over 2,200 employees, citing concerns about the abrupt impact on foreign staff. He extended the order briefly on February 13 but lifted it on February 21. In his ruling, Nichols emphasized that the court’s authority was limited to addressing employment-related matters and did not extend to broader constitutional questions about the restructuring of USAID.

With the restraining orders lifted, the Trump administration proceeded with its plan, placing about 2,000 USAID employees on administrative leave and retaining around 600 deemed essential. Employees based overseas were given the option to return to the U.S. within 30 days, with travel costs covered by the government.

Although the dismissal marks a clear legal win for Trump, broader litigation concerning constitutional and funding issues tied to the agency’s overhaul remains unresolved. Legal challenges to the future of USAID could still unfold in the months ahead.