Appeals court rules DOGE can continue operating at USAID in another win for Trump administration

A federal appeals court on Friday granted the Trump administration’s motion to extend a stay allowing the Department of Government Efficiency (DOGE) to continue operating at the United States Agency for International Development (USAID).

Last week, a federal judge in Maryland ruled efforts to halt USAID functions were likely unconstitutional, ordering its reinstatement.

A federal appeals court in Richmond, Virginia, on Tuesday issued a stay, temporarily blocking the judge’s order that prohibited DOGE from working with USAID. It also barred biopharmaceutical executive Jeremy Levin from leading the agency.

Friday’s decision extends the stay until the appeal is resolved.

A group of 26 unidentified current and former USAID employees or contractors alleged the Trump administration unlawfully canceled government contracts, placed USAID personnel on administrative leave, reduced the force of employees and contractors, closed the headquarters and took down the website, violating the U.S. Constitution’s appointments clause because Elon Musk acted as DOGE administrator without being properly appointed. 

They also claimed dismantling USAID infringed on Congress’ responsibilities, according to court documents.

The Trump administration fought the claims, alleging Musk acts as a senior advisor to the president, and actions at USAID were carried out by Secretary of State Marco Rubio as USAID’s acting administrator, who then designated Peter Marocco as deputy administrator. 

USAID subsequently, and in accordance with President Donald Trump’s executive order, established an internal DOGE team led by Lewin, according to court documents.

Actions the employees and contractors alleged were unconstitutional were within both agency discretion and the president’s authority to direct foreign policy, the administration argued.

The district court granted the employees and contractors’ requested preliminary injunction, blocking DOGE from operating at USAID, finding the administration ‘likely’ violated the Constitution, and the pause was in the public interest. 

It later clarified Lewin, who led the USAID DOGE team prior to the injunction, could no longer do his job as chief operating officer at USAID and declined to grant any modifications. 

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 to stay the injunction pending the appeal.

U.S. Court of Appeals Circuit judges Arthur Marvin Quattlebaum Jr. and Judge Paul V. Niemeyer found Friday that Musk and DOGE ‘made a strong showing that they are likely to succeed on the merits of the appeal, that they will be irreparably injured absent the stay,’ according to court documents.

Further, Quattlebaum and Niemeyer found the stay ‘favors the public interest.’

The ruling marked the third temporary win Friday for the Trump administration at the federal appeals court level.