Elon Musk’s efforts to dismantle USAID challenged by federal court ruling: What it means for US agencies – The Times of India

Elon Musk’s controversial push to restructure and shrink US government agencies has encountered a significant legal challenge. On March 18, 2025, a federal judge ruled that Musk’s attempts to dismantle the United States Agency for International Development (USAID) were likely unconstitutional. The ruling, delivered by Theodore D. Chuang, a Harvard graduate and Obama appointee, could have far-reaching implications for the Trump administration’s broader plans for government efficiency.
In a detailed 68-page opinion, Judge Chuang ordered the White House to restore access to government systems and platforms for former USAID employees. This includes access to email, security systems, and payment platforms, as well as permitting the agency to return to its shuttered headquarters in Washington, D.C. The ruling marks a direct challenge to Musk’s authority and his role in overseeing the newly created Department of Government Efficiency (DOGE), which has sought to downsize and streamline government operations.
Federal judge sides with USAID employees
The lawsuit, filed by more than two dozen former USAID affiliates, centered on Musk’s actions to significantly cut back the agency’s functions. According to The Harvard Crimson, Judge Chuang sided with the plaintiffs, asserting that Musk’s control over DOGE, and his efforts to override USAID officials’ objections, were likely unconstitutional. “Musk’s public statements and posts on X demonstrate that he has firm control over DOGE,” Chuang wrote in his opinion. This ruling could halt further efforts by Musk to dismantle USAID.
While the judge did not reinstate all of USAID’s operations, his decision requires the White House to reverse some of the agency’s closures. Notably, Chuang stopped short of ordering the restaffing of USAID or the restoration of canceled contracts. “USAID had, at least on paper, approved or ratified those decisions,” the judge added, leaving some room for cuts approved by USAID officials to proceed as planned.
Impact on government efficiency and the Trump administration
The court’s ruling comes at a critical time, as the Trump administration has already been working to reduce government spending and efficiency. Under Musk’s guidance, DOGE has been responsible for closing various federal agencies and laying off employees. Recently, Secretary of State Marco A. Rubio announced that 83 percent of USAID’s programs had been cut, a decision that Judge Chuang’s ruling could now challenge.
As quoted by The Harvard Crimson, White House spokesperson Anna T. Kelly has stated that the administration plans to appeal the ruling, calling it a “miscarriage of justice.” The appeal could delay any immediate changes, but the ruling has nonetheless sparked a broader conversation about government restructuring and the limits of executive power.