Thursday, July 24, 2025

Court Freezes Musk’s USAID Shutdown on Constitutional Grounds

A federal judge has temporarily halted the rapid dismantling of the US Agency for International Development, ruling that Elon Musk likely exceeded constitutional authority in his cost-cutting role, escalating a standoff between the Trump administration and Democratic lawmakers.

US District Judge Theodore Chuang issued an injunction this week requiring the Department of Government Efficiency to reinstate email and system access for USAID employees while litigation continues, marking the first judicial rebuke to Musk’s expanding role in the administration’s overhaul of federal agencies.

Read: Multiple Lawsuits Challenge The Constitutionality of Elon Musk’s DOGE Power 

“If a president could escape Appointments Clause scrutiny by having advisors go beyond traditional White House advisory roles to exercise significant authority throughout the federal government, the Appointments Clause would be reduced to nothing more than a technical formality,” wrote Chuang, an appointee of former President Barack Obama.

The ruling comes after dramatic scenes at USAID headquarters where Democratic lawmakers were physically prevented from entering the building by security officers. Democratic Senator Chris Murphy called the situation “a constitutional crisis,” while Representative Jamie Raskin warned: “We don’t have a fourth branch of government called Elon Musk.”

Since President Donald Trump took office in January, DOGE has orchestrated sweeping changes at USAID, which oversees humanitarian and development programs in approximately 120 countries. 

Within weeks, the agency saw its leadership removed, thousands of employees furloughed, and its website vanished Saturday without explanation. The agency’s computer servers were reportedly carted away. Musk declared on X that he had “spent the weekend feeding USAID into the wood chipper.”

The legal challenge was brought by 25 current and former USAID employees represented by the State Defenders Democracy Fund. Their lawsuit argued Musk and DOGE were operating unconstitutionally by wielding governmental authority without Senate confirmation.

The White House defended the moves, with spokesperson Anna Kelly calling the ruling “a miscarriage of justice” and promising an appeal. “Rogue judges are subverting the will of the American people in their attempts to stop President Trump from carrying out his agenda,” Kelly said in a statement.

The White House maintains that Musk’s role is strictly advisory, but Judge Chuang cited evidence that DOGE has taken “unilateral actions without any apparent authorization from agency officials.”

The ruling offers temporary relief to current employees but leaves the agency’s long-term fate uncertain as the administration pursues plans to dramatically reduce US foreign assistance activities.

A different federal judge previously ordered the release of payments owed under certain existing contracts, though declined to invalidate the individual review that slashed the agency’s awards.

On Wednesday, The Associated Press reported that a DOGE official, Jeremy Lewin, is set to become deputy administrator for policy and programs at USAID and serve as chief operating officer, according to an internal email from Pete Marocco to State Department staff. 

Secretary of State Marco Rubio also announced that many USAID functions would be transferred to the State Department, with Pete Marocco designated as the State Department’s director of foreign assistance, saying it was “an indispensable role in aligning all US government foreign assistance with the president’s priorities.”


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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