Trump Slashes 2,000 Jobs at USAID, Puts Thousands on Leave After Court Ruling

Washington: The Trump administration has intensified its crackdown on the US Agency for International Development (USAID), placing nearly all staffers on leave and initiating a mass layoff of at 2,000 US-based employees. The decision comes after a federal court ruled in Trump's favor, paving the way for what his administration and billionaire supporter Elon Musk, who calls USAID a "criminal organization" that has funnelled billions of taxpayer dollars into foreign projects. 

What's Happening with USAID? 

Trump has openly mocked the previous administration for spending huge amounts on foreign aid. In that year alone, USAID disbursed $40 billion for foreign aid, according to a report published by the nonpartisan Congressional Research Service. On his first day back in office, he implemented a 90-day freeze on foreign assistance, a decision that forced thousands of aid programs to shut down and led to mass furloughs and layoffs. Four days later, Trump-appointed USAID chief Pete Marocco issued stricter guidelines that further tightened funding flows, signaling an aggressive push to gut the agency.

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Legal Green Light for Job Cuts

The administration’s latest move comes after US District Judge Carl Nichols rejected lawsuits seeking to block the layoffs, allowing Trump’s team to proceed with its plans. A notification sent to USAID employees confirmed that all direct-hire personnel, except those in mission-critical roles, were placed on administrative leave as of 11:59 p.m. EST on February 23. In parallel, a reduction-in-force order has begun eliminating 1,600 jobs, with more cuts expected.

Hundreds of contractors were already axed last week, receiving anonymous termination letters that omitted their names and positions. This has made it harder for dismissed workers to claim unemployment benefits, fueling outrage among affected employees and unions.

USAID Headquarters Shut Down

The push to dismantle USAID has also seen its Washington headquarters shuttered, with employees barred from entering. Even the agency’s official website and social media accounts have been taken offline, erasing its digital presence overnight. Foreign staffers stationed worldwide now face uncertainty, as the administration has given them a 30-day window to return to the U.S. with government-paid travel—beyond which they will remain on indefinite leave with no clarity on their future.

Trump and Musk have long accused USAID of being a corrupt entity that misuses US taxpayer money under the guise of humanitarian aid. Musk has gone as far as calling it a "criminal organization," arguing that American funds should not be squandered on foreign projects that do little to serve national interests. The administration claims that the ongoing freeze on foreign aid has already pressured recipient nations into offering more favorable trade and security deals to the US.

Secretary of State Marco Rubio, defending the cuts, has stated that the administration's approach is to evaluate aid programs based on whether they make "America safer, stronger, or more prosperous." The sweeping review, he argues, is necessary to eliminate waste and redirect funds to projects that align with Trump’s "America First" vision.

With USAID on the brink of collapse, the world is watching how the US will reshape its role in global development. While Trump and Musk celebrate what they see as a long-overdue purge of government excess, critics warn that the abrupt dismantling of the agency could have far-reaching consequences for America’s diplomatic and economic standing worldwide.