Temporary Restraining Order Halting USAID Mass Terminations is Lifted

Legal challenges to President Trump’s actions to defund USAID have been rapidly evolving since his January 20 Executive Order: Reevaluating and Realigning United States Foreign Aid. Events through February 18^th were chronicled in our previous article, but the situation continues to evolve.

Federal judge lifts temporary restraining order (TRO) on USAID layoffs

On Friday, February 21, 2025, U.S. District Judge Carl Nichols lifted a TRO he had previously granted and extended to prevent widespread layoffs of USAID employees. With the TRO no longer in place, Deputy Administrator of USAID Peter Marocco is cleared to move forward with placing 2,014 USAID employees on administrative leave, joining the 2,140 employees placed on leave before the TRO.

Before the TRO was lifted, Marocco filed multiple declarations addressing Judge Nichols’ previous concerns, including assurances that overseas USAID employees would retain access to security systems if placed on leave.

Tracking layoffs and impacts

Unions and volunteers are continuing efforts to gather resources, track impacts, and pursue legal options. Volunteers have created a site to track lost jobs, domestically and abroad, and centralize information.

USAID is not the only department to feel the impact of federal funding cutbacks. Mass terminations are also expected at other federal agencies, including the Food and Drug Administration, the Treasury Department, and the Environmental Protection Agency, among others. Resources are available for displaced workers, including reemployment programs and federal unemployment.

The bottom line 

The lifting of the TRO clears the way for further changes at USAID, and thousands of employees will be impacted. Further rippling effects are likely among organizations that partner with USAID, including grantees and contractors.

Navigating stop-work orders and other changes can be complex, but you don’t have to do it alone. Aprio’s Government Contracting and Nonprofit teams are here to guide you every step of the way. Whether you need support with claims work, termination settlements, or strategic planning, we’re ready to help. 

Connect with an Aprio team member.  

Related Resources 

Prime Contractors: How to Manage Multiple Terminations, Subcontractors, and Settlements

Government Contractors: You Need a Financial Action Plan

Federal Funding Freeze: Steps for Short- and Long-Term Success