A Trump-appointed federal judge on Friday delivered a decisive ruling in favor of the administration, paving the way for a sweeping overhaul of the U.S. Agency for International Development (USAID). U.S. District Judge Carl Nichols dissolved his previous order that temporarily halted the administration’s plan to place thousands of USAID employees on administrative leave and withdraw personnel from key international field offices.

The case, filed by two unions representing USAID employees, sought to challenge what they called a “systematic dismantling” of the agency. However, Judge Nichols determined that the plaintiffs failed to demonstrate the need for further preliminary relief, effectively clearing the path for the administration to move forward with its restructuring efforts.

On his first day back in office, President Trump signed Executive Order “Reevaluating and Realigning United States Foreign Aid.” The order mandated an immediate 90-day pause on new development assistance obligations and disbursements, pending a full review of USAID’s programs to assess their efficiency and alignment with U.S. foreign policy interests.

“The United States foreign aid industry and bureaucracy are not aligned with American interests and in many cases [are] antithetical to American values,” the order states.

Secretary of State Marco Rubio followed up with a directive pausing all new obligations of funding for foreign assistance programs administered by USAID. While the administration has granted waivers for essential humanitarian and military assistance programs, thousands of USAID employees have already been placed on paid administrative leave as part of a broad agency-wide audit.

Unions representing USAID employees argued that the administration’s actions constituted an unlawful dissolution of the agency and sought a temporary restraining order to halt the process. On February 7, Judge Nichols partially granted their request, blocking the mass placement of employees on leave and the expedited recall of U.S. personnel stationed abroad.

However, following multiple hearings and supplemental declarations, Nichols ruled that the plaintiffs failed to prove irreparable harm or a likelihood of success on the merits. He lifted the temporary restraining order, allowing the Trump administration to continue with its review process.

The ruling stated: “Plaintiffs have not established that their members would suffer imminent irreparable harm as a result of the government’s challenged actions absent a preliminary injunction.”

Nichols further emphasized that USAID employees on leave would still retain access to essential resources and diplomatic security, contradicting claims that personnel were being left vulnerable in high-risk foreign postings.

“Weighing plaintiffs’ assertions on these questions against the government’s is like comparing apples to oranges,” Nichols wrote. “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 decision represents a significant victory for Trump’s efforts to curtail what he has long criticized as excessive and inefficient foreign aid spending. The administration has argued that USAID’s operations must be streamlined to ensure American taxpayers are not funding programs that do not serve national interests.

Trump officials have hinted at a larger reorganization plan that could see USAID either consolidated back into the State Department or significantly reduced in scope.