A federal appeals court ruled Friday in favor of the Trump administration, extending a stay that allows the Department of Government Efficiency (DOGE) to continue its operations at the United States Agency for International Development (USAID).
The decision was made following a ruling from a federal judge in Maryland last week, which found that efforts to halt USAID functions were likely unconstitutional and ordered the reinstatement of the agency’s operations.
On Tuesday, the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia, issued a temporary stay, blocking the judge’s order that had prohibited DOGE from working with USAID.
The court’s action also prevented biopharmaceutical executive Jeremy Levin from leading the agency. Friday’s decision extended that stay until the appeal is fully resolved.
The legal battle stems from a lawsuit filed by a group of 26 current and former USAID employees or contractors, who allege that the Trump administration unlawfully canceled government contracts, placed USAID personnel on administrative leave, and took actions that dismantled the agency.
The plaintiffs argue that these actions violated the U.S. Constitution’s appointments clause, claiming that Elon Musk served as DOGE administrator without proper appointment.
Additionally, they contend that the dismantling of USAID infringed upon Congress’ responsibilities, as detailed in court documents.
In response to the claims, the Trump administration denied any wrongdoing, asserting that Musk served as a senior advisor to the president and that the actions taken at USAID were carried out under the direction of Secretary of State Marco Rubio, who served as the agency’s acting administrator.
Rubio designated Peter Marocco as the deputy administrator, and in line with President Donald Trump’s executive order, USAID created an internal DOGE team led by Levin, according to court documents.
The administration argued that the actions taken by USAID were within the discretion of the agency and the president’s authority to direct foreign policy.
Furthermore, it maintained that the actions were legal and did not violate the Constitution.
Despite the administration’s defense, the district court granted the employees and contractors’ request for a preliminary injunction.
The injunction blocked DOGE from operating at USAID, as the court found that the Trump administration was “likely” in violation of the Constitution, with the pause deemed to be in the public interest.
The court later clarified that Levin, who had led the USAID DOGE team prior to the injunction, could no longer serve as the chief operating officer at USAID, and denied the administration’s request for modifications to the ruling.
The Trump administration appealed the district court’s preliminary injunction and the denial of its motion for clarification or modification.
It also filed an emergency motion seeking to stay the injunction pending the appeal.
The appeals court’s ruling on Friday was a significant victory for the Trump administration.
Judges Arthur Marvin Quattlebaum Jr. and Paul V. Niemeyer stated that Musk and DOGE had made a “strong showing” that they were likely to succeed on the merits of the appeal.
The judges also determined that the administration would face “irreparable injury” if the stay was not granted, and that the public interest was served by extending the stay.
Friday’s decision marked the third win for the Trump administration at the federal appeals court level.
As the case continues to develop, the legal battle over the future of DOGE at USAID and its potential impact on the agency’s operations remains ongoing.
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