Personal Services Contractor Association v. Trump

CourtDistrict Court, District of Columbia
DecidedJuly 25, 2025
DocketCivil Action No. 2025-0469
StatusPublished

This text of Personal Services Contractor Association v. Trump (Personal Services Contractor Association v. Trump) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Personal Services Contractor Association v. Trump, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

AMERICAN FOREIGN SERVICE ASSOCIATION, et al.,

Plaintiffs,

v. Civil Action No. 1:25-cv-352 (CJN)

DONALD TRUMP, et al.,

Defendants.

PERSONAL SERVICES CONTRACTOR ASSOCIATION,

Plaintiff,

v. Civil Action No. 1:25-cv-469 (CJN)

MEMORANDUM OPINION

Across these two cases, four organizations challenge what they describe as the unlawful

dismantling of USAID. Three represent employees or contractors at USAID: the American

Foreign Service Association (AFSA) represents USAID foreign service officers, the American

Federation of Government Employees (AFGE) represents USAID civil servants, and the Personal

Services Contractor Association (PSCA) represents USAID personal services contractors, who

perform standard government work for the agency without having been “directly hired” by it. The

fourth organization, Oxfam America, is a humanitarian group that sees its mission as combatting

1 global poverty, inequality, and injustice. Each organization alleges that the government’s actions

taken with respect to USAID, as detailed below, violate the Constitution, the APA, and are ultra

vires.

The Court ultimately cannot reach the merits of any plaintiff’s allegations, however,

because it concludes that it lacks jurisdiction over the claims of AFSA, AFGE, and Oxfam (which

have moved for summary judgment after the Court denied their earlier motion for a preliminary

injunction), and that it likely lacks jurisdiction over the claims of the PSCA (which has moved for

a preliminary injunction). The Court will accordingly grant the government’s motion to dismiss

the AFSA case and will deny the PSCA’s motion for a preliminary injunction.

I. Background

A. Factual Background

The Court previously recounted many of the facts underlying these cases. See Am. Foreign

Serv. Ass’n v. Trump (AFSA I), 768 F. Supp. 3d 6, 11–14 (D.D.C. 2025). But there have been

some further developments since that juncture, so a brief recap is in order before breaking new

ground.

USAID is “the lead international humanitarian and development arm of the U.S.

government.” Cong. Rsch. Serv., U.S. Agency for International Development: An Overview (Jan.

6, 2025). President Kennedy initially created USAID via Executive Order, as an arm of the State

Department. See Exec. Order 10,973 § 102, 26 Fed. Reg. 10,469 (Nov. 3, 1961). But in 1998,

Congress passed a statute that installed the agency as an “independent establishment,” outside of

State. 22 U.S.C. § 6563(a); 5 U.S.C. § 104(1); but see 22 U.S.C. § 6592 (specifying that the

USAID Administrator “shall report to and be under the direct authority and foreign policy

guidance of the Secretary of State”). Since then, Congress has consistently appropriated funds for

2 USAID, including in the Further Consolidated Appropriations Act of 2024. See Pub. L. 118–47,

138 Stat 460 (2024). Relevant here, that Act provides that appropriated funds may not be used to

“implement a reorganization [or] redesign” of the agency without “prior consultation” by the

agency head with appropriate congressional committees. Id. § 7063(a); see also id. § 7063(b)

(defining “reorganization” and “redesign” to include actions to “downsize the United States

official presence overseas,” “reduce the size of the permanent Civil . . . [or] Foreign Service,” and

“eliminate, consolidate, or downsize covered departments, agencies, or organizations”).

Until recently, USAID used its appropriated funds to support humanitarian and

development projects in approximately 120 foreign countries—both via its independent work and

via grants awarded to partner organizations and governments. AFSA, ECF No. 51-2 (SOMF) ¶¶ 3–

5. On January 20, 2025, however, President Trump issued an Executive Order directing “a 90-day

pause in United States foreign development assistance,” pending an “assessment of [its]

programmatic efficiencies and consistency with United States foreign policy.” Exec. Order.

14,168, 90 Fed. Reg. 8619 § 3(a) (Jan. 20, 2025). The Order further instructed that, at the end of

90 days, “responsible department and agency heads” would determine “whether to continue,

modify, or cease each foreign assistance program based upon the review recommendations.” Id.

§ 3(c).

Secretary of State Rubio implemented that Executive Order in a January 24 memorandum

that paused “all new obligations of funding, pending a review, for foreign assistance programs

funded by or through the [State] Department and USAID.” Dep’t of State, Mem. 25 STATE 6828

¶ 1 (Jan. 24, 2025). The memorandum also directed that, “[f]or existing foreign assistance awards,

contracting officers and grant officers shall immediately issue stop work orders, consistent with

the terms of the relevant award, until such time as the Secretary shall determine, following a

3 review.” Id. ¶ 7. According to the government, a “blanket pause” on foreign aid “was the more

efficient and effective path,” since, given the scale of programming, “an ad hoc review would

[have] unduly burden[ed] the execution of the President’s other foreign policy priorities.” AFSA,

ECF No. 85 (AR) at 121–22. Still, Secretary Rubio did exempt from the pause several categories

of expenditures: foreign military financing for Israel and Egypt; emergency food assistance;

legitimate expenses incurred prior to the date of the memorandum; and salaries and related

administrative expenses for certain direct hire employees, personal services contractors, and

locally employed staff. See Mem. 25 STATE 6828 ¶¶ 12(a)–(e). And Secretary Rubio later also

waived the pause as to spending on “life-saving humanitarian assistance” and “[l]ife-saving HIV

care and treatment services.”1 SOMF ¶¶ 28–30.

Six days later, President Trump appointed Secretary Rubio as the Acting Administrator of

USAID. AR at 16. On February 3, 2025, Secretary Rubio sent a letter to Congress stating that

Peter Marocco was delegated the duties of Deputy Administrator of USAID and would “begin the

process of engaging in a review and potential reorganization of USAID’s activities to maximize

[its] efficiency and align [its] operations with the national interest.” Id.

To effectuate that review and potential reorganization, and in light of alleged

“noncompliance” with those efforts by former agency leadership, Deputy Administrator Marocco

began placing USAID employees on administrative leave and terminating contracts with USAID

personal services contractors (PSCs). See id. at 7, 17–20. By February 7, 2025, USAID had placed

2,140 of its 4,746 direct-hire employees on administrative leave, and had approved the termination

1 Plaintiffs maintain that these waivers were largely ineffectual, due to newly imposed restrictions on who could access payment systems and heightened approval processes before payments could be disbursed, among other changes at the agency. See, e.g., AFSA, ECF No. 51 (MSJ) at 5. 4 of 791 of its 1,239 PSCs. Id. at 7, 19. However, pursuant to a TRO issued in AIDS Vaccine

Advocacy Coalition (AVAC) v. United States Department of State, D.D.C. Case No. 25-cv-400,

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