Trump scores a huge victory against bureaucratic waste as the Fourth Circuit Court clears the way for his administration to slash a $40 billion foreign aid agency. The ruling deals a major blow to leftist initiatives abroad while strengthening the President’s efficiency agenda with Elon Musk.
At a glance:
• The U.S. State Department is shuttering USAID following a federal court victory supporting Trump’s cost-cutting measures.
• Secretary of State Marco Rubio declared USAID had “strayed from its original mission” with “too few gains” and “too high costs.”
• The Fourth Circuit Court of Appeals lifted a lower court injunction, allowing Trump and Musk’s efficiency team to proceed with dismantling the agency.
• USAID’s $40 billion budget had faced criticism for funding left-wing initiatives rather than advancing American interests.
• Essential programs will be integrated into the State Department by July 1, while non-aligned functions will be discontinued completely.
Court Victory Empowers Trump’s Cost-Cutting Agenda
A federal appeals court has delivered a significant win for President Trump’s administration by allowing proposed budget cuts to the U.S. Agency for International Development (USAID) to proceed. The Fourth U.S. Circuit Court of Appeals unanimously agreed to stay a lower court’s injunction that had temporarily halted the administration’s plans to investigate and eliminate inefficiencies within the foreign aid agency.
The decision effectively gives the green light to Elon Musk and the Department of Government Efficiency (DOGE) to continue their cost-cutting mission targeting the $40 billion agency. Secretary of State Marco Rubio wasted no time following the ruling, announcing that the State Department would be shuttering USAID and absorbing only its essential functions.
USAID “Strayed From Its Mission” Says Rubio
“Foreign assistance done right can advance our national interests, protect our borders, and strengthen our partnerships with key allies. Unfortunately, USAID strayed from its original mission long ago. As a result, the gains were too few and the costs were too high,” Secretary of State Marco Rubio said.
The State Department memo indicated that some USAID employees might be rehired for essential aid programs while non-statutory positions would be eliminated entirely. The massive restructuring aims to create a more streamlined approach to foreign assistance that prioritizes American interests rather than ideological agendas.
“Thanks to President Trump, this misguided and fiscally irresponsible era is now over. We are reorienting our foreign assistance programs to align directly with what is best for the United States and our citizens,” added Rubio in his statement confirming the agency’s demise.
Musk’s Role Deemed Constitutional Despite Democrat Challenges
The court battle centered not only on the budget cuts themselves but also on Elon Musk’s controversial role within the administration. U.S. District Judge Theodore Chuang had previously ruled that Musk, as Head of the Department of Government Efficiency (DOGE), was acting in a capacity that required Senate confirmation.
The appeals court rejected this interpretation, with U.S. Circuit Judge Marvin Quattlebaum writing, “While defendants’ role and actions related to USAID are not conventional, unconventional does not necessarily equal unconstitutional.” The three-judge panel found that Musk was acting as a senior adviser to President Trump, not as a formal administrator requiring Senate approval.
Twenty-six current and former USAID employees have filed lawsuits challenging Musk’s authority and the dismantling of the agency. The administration maintains that all final decisions were properly approved by Senate-confirmed officials, including Secretary Rubio, making the process entirely constitutional despite Musk’s influential advisory role.
The State Department plans to complete the integration of essential USAID functions by July 1, with the transfer designed to improve efficiency, accountability, and strategic impact in foreign assistance. Many conservative lawmakers have long criticized USAID for funding programs that don’t align with American values or interests, making its reduction a priority for the Trump administration’s government efficiency agenda.
While Democrats and former USAID officials continue to challenge the dismantling of the agency through lawsuits, the appeals court ruling represents a significant victory for President Trump’s promise to drain the swamp. The case remains ongoing, with Judge Quattlebaum noting, “None of this is to say that plaintiffs will not be able to develop evidence of unconstitutional conduct as the case progresses. Time will tell.”
