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    • News
    • The Trump Effect

    Major new lawsuit filed by USAID contractors, NGOs challenges aid freeze

    The Trump administration has violated the constitution and should be forced to reverse the foreign affairs funding cuts, the suit argues.

    By Adva Saldinger // 11 February 2025

    The companies and nongovernmental organizations that run USAID’s global programs have been devastated by the Trump administration’s foreign aid freeze and stop-work orders. For them, it’s not just politics — it’s survival. Mass layoffs, sweeping furloughs, and the looming threat of collapse have pushed them to the brink.

    Aid advocates have been waiting for the courts to step in — and now, the legal fight is gaining traction. A newly filed lawsuit, backed by major for-profit contractors and NGOs, is taking direct aim at the freeze. With USAID programs stalled and the agency being systematically dismantled, the situation has reached a breaking point.

    The companies and NGOs responsible for implementing USAID programs worldwide have been crippled by the freeze, but the consequences extend beyond these organizations, leaving millions of people without access to lifesaving humanitarian and development assistance.

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    About the author

    • Adva Saldinger

      Adva Saldinger@AdvaSal

      Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.

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