Friday’s ruling by Judge Nichols came in response to an emergency petition by the American Foreign Service Association and American Federation of Government Employees – two unions representing employees of the agency.
During the hearing, Judge Nichols – who was nominated by Trump during his first term – did not seem likely to grant other requests as part of the lawsuit, including to restore grants and contracts or reopen USAID buildings.
The legal action argued that the president was violating the US Constitution and federal law by attempting to dismantle the agency.
“Not a single one of defendants’ actions to dismantle USAID were taken pursuant to congressional authorization,” it said.
“And pursuant to federal statute, Congress is the only entity that may lawfully dismantle the agency.”
Representing the Trump administration, justice department official Brett Shumate told the judge that the president “has decided there is corruption and fraud at USAID”.
Getty Images Black tape covers a USAID sign outside it’s headquarters in Washington. A sign with a grave stone reads “RIP USAID”. Flowers sit nearby Getty Images
Hours after Trump took office on 20 January, he signed an executive order halting all foreign assistance until such funds were vetted and aligned with his “America First” policy.
That led to a stop work order at USAID, which runs health and emergency programmes in around 120 countries, including in the world’s poorest regions.
“USAID IS DRIVING THE RADICAL LEFT CRAZY,” Trump posted on his Truth Social platform.
USAID is the world’s biggest aid donor – with much of its budget spent on health programmes around the world. Two-thirds of its 10,000 staff work overseas.
It is one of many federal agencies his administration is targeting as it works to slash federal spending in the US.
The Republican campaigned on overhauling the government and formed an advisory body named the Department of Government Efficiency (Doge) – led by tech billionaire Elon Musk – to slash the budget.