Aid organizations are requesting a federal judge to hold USAID and State Department officials in contempt for failing to reinstate funding for international programs. USAID maintains it has the legal authority to terminate contracts.
A significant legal conflict is unfolding between a federal judge and officials from the Trump administration at the United States Agency for International Development (USAID). The core of the dispute involves the Trump administration’s decision to cut off federal funding to numerous global aid organizations. Despite a judge’s repeated orders to USAID to resume the distribution of millions of dollars, the administration has not complied over the past week. NPR’s Frank Langfitt reports further on this issue.
Numerous lawsuits have been initiated against the Trump administration due to its attempts to reduce the scope of federal agencies. This particular case is notable because USAID was the first agency targeted by the Trump administration, and it represents one of the most advanced legal challenges that could result in a conflict between the executive and judicial branches of the U.S. government.
The controversy is quite straightforward. The Trump administration halted funding for a multitude of international aid organizations, leading some affected organizations to sue, claiming the cessation caused them significant harm. A judge agreed with their position and ordered USAID to resume payments.
However, the administration has not yet complied with this order, asserting its right to review and potentially cancel grants and contracts per their terms. USAID claims it is currently assessing contracts individually. The judge, however, has directed USAID to maintain payments to organizations owed money while the legal proceedings continue.
Recently, USAID announced the cancellation of nearly 500 contracts, partially due to their focus on diversity, equity, inclusion, sustainability, and combating climate change. While USAID has reportedly preserved about 20 contracts valued at approximately $250 million, this is only a small portion of the agency’s annual $40 billion budget across roughly 130 countries.
The current situation reflects a standoff between a federal judge and Trump administration officials. The plaintiffs have requested the court to hold USAID and the State Department in contempt, implying non-compliance with court orders by the Trump administration. Though the judge has not yet issued a contempt ruling, his orders suggest increasing impatience with the government’s stance.
The impact of this funding halt is significant worldwide, as illustrated by various scenarios. A member of a banned Cambodian political party must leave a safehouse now unfunded by USAID, fearing imprisonment. An investigative journalism group focused on transnational corruption has had to reduce its workforce by a quarter. In Washington, D.C., Freedom House is preparing to lay off 76 staff members.
The judge has instructed the involved parties to meet by the following Wednesday to discuss the government’s payment compliance, indicating a possible pressure tactic. If the government persists in resisting, the plaintiffs are likely to continue seeking a contempt order. Ultimately, a resolution must occur in the ongoing conflict.
Frank Langfitt of NPR provides this report. The original transcript is under © 2025 NPR terms.
