Rural Development Innovations Limited v. Marocco

CourtDistrict Court, District of Columbia
DecidedJuly 1, 2025
DocketCivil Action No. 2025-1631
StatusPublished

This text of Rural Development Innovations Limited v. Marocco (Rural Development Innovations Limited v. Marocco) 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
Rural Development Innovations Limited v. Marocco, (D.D.C. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

Rural Development Innovations Limited, e¢ al.,

v,

Pete Marocco, et al.,

Plaintiffs, Civil Action No. 25-1631 (RJL)

Defendants.

MEMORANDUM OPINION $4 July ) , 2025 [Dkt. #7]

This case is the second challenge to President Trump’s efforts to reduce the functions of the United States African Development Foundation (““USADF”), a small federal agency that invests directly into African enterprises. Plaintiffs Rural Development Innovations Limited (“RDI’”)—a grant recipient in Zambia—and Paul Olson (“Olson”) and Solomon Chi (“Chi”)—two former employees of USADF—filed this suit with an accompanying motion for a preliminary injunction against Pete Marocco (“Marocco”), the U.S. Department of Government Efficiency Service (‘DOGE”), Sergio Gor, Amy Gleason, Stephen Ehikian, Scott Bessent, Douglas Burgum, and President Donald J. Trump (collectively, “defendants”) for alleged violations to the Federal Vacancies Reform Act, the African Development Foundation Act, various constitutional provisions, and the Administrative Procedure Act. All these violations flow from the President’s appointment

of Marocco as an acting member of USADF’s Board of Directors. For the reasons stated below, the Court GRANTS IN PART AND DENIES IN PART the motion for a preliminary injunction. BACKGROUND I. Statutory and Factual Background

USADF is a federal agency established by Congress to support and invest in African-owned and African-led enterprises with the goal of “enabl[ing] the people of African countries to develop their potential, fulfill their aspirations, and enjoy better, more productive lives[.]” See 22 U.S.C. § 290h-2(a). The agency is tasked with making “grants, loans, and loan guarantees to any African private or public group (including public international organizations), association, or other entity engaged in peaceful activities for” carrying out its purposes. Jd. § 290h-3(a)(1).

The statute vests the management of USADF in a Board of Directors (“Board”). See id. § 290h-5(a)(1). The Board is “composed of seven members appointed by the President [of the United States], by and with the advice and consent of the Senate.” Id. The President may select a chairperson and vice chairperson among the board members. Id. The Board, in turn, manages the agency in part through its appointment of a president. Id. § 290h-5(d). The president functions “on such terms as the Board may determine.” Id. By the Board’s delegation, the president has the “responsibility for directing the day to day activities of the Foundation.” 22 C.F.R. § 1501.3(b).

On February 19, 2025, President Trump signed Executive Order 14,217 (“EO 14,217’), entitled “Commencing the Reduction of the Federal Bureaucracy.” See 90 Fed.

Reg. 10577 (Feb. 19, 2025). The purpose of EO 14,217 is to “dramatically reduce the size of the Federal Government[.]” /d. § 1. It lists four federal agencies—USADF included— that would “be eliminated to the maximum extent consistent with applicable law” by “reduc[ing] the performance of [its] statutory functions and associated personnel to the minimum presence and function required by law].]” Jd. § 2.

A few days after President Trump signed EO 14,217, he appointed Marocco—one of the Trump Administration’s utility players'—as the acting chairperson of USADF’s Board. Compl. [Dkt. #1] 994, 51. Marocco subsequently appointed himself as the president of USADF and commenced the reduction of the agency. Jd. §§[/ 4-5, 52. Specifically, Marocco terminated most of USADF’s grants, contracts, and employees. Jd. 91.5, 59-64. That included RDI’s funding it received through a cooperative agreement, and Olson and Chi’s employment. Jd. §{] 7-8; Pls.’ Mot., Ex. A, Decl. of Victor Makasa (“Makasa Decl.”) [Dkt. #7-2] Jf] 2, 5. To date, two employees are still employed, and three grants remain active at USADF. Compl. {ff 61, 63.

II. Procedural History

In a related case, Ward Brehm (“Brehm”) challenged President Trump’s appointment of Marocco and his actions at USADF. See Brehm v. Marocco, No. 25-CV- 660 (D.D.C. Mar. 6, 2025) [Dkt. #1]. The Court denied Brehm’s motion for summary judgment, in part because Brehm did not have standing to challenge Marocco’s

appointment. See id., 2025 WL 1640193, at *1, 5-6 (D.D.C. June 10, 2025).

' See, e.g., Aviel v. Gor, No. 25-5105, 2025 WL 1600446, at *1 (D.C. Cir. June 5, 2025) (Katsas, J., concurring) (Marocco appointed as an acting Board member at the Inter-American Foundation); Aids Vaccine Advoc. Coal. v. U.S. Dep’t of State, 770 F. Supp. 3d 121, 141 (D.D.C. 2025) (Marocco installed as United States Agency for International Development Deputy Administrator). While summary judgment motions were pending in Brehm, plaintiffs filed the present lawsuit. The Complaint alleges that the President’s appointment of Marocco as an acting member of USADF’s Board is ultra vires under the Federal Vacancies Reform Act (“FVRA”) and the African Development Foundation Act. Compl. J] 75-85. It also alleges that (1) the President’s appointment of Marocco; (ii) defendants’ termination of USADF’s contracts, grants, and employees; and (iii) defendants’ actions that “render it impossible for USADF to perform its statutory functions” violate the Appointments Clause, “the principle of separation of powers, the Constitution’s vesting of the spending power and the power to legislate in Congress, and the Take Care Clause.” Jd. J§ 86-93. Finally, the Complaint alleges that defendants’ actions at USADF after Marocco’s appointment violate the Administrative Procedure Act. Jd. J§[ 94-98. Plaintiffs seek declaratory relief—or, in the alternative, a writ of mandamus—injunctive relief, attorneys’ fees and expenses, and “such other relief as the Court deems proper.” Jd. 4] 99-102; id. at 26-27 (Prayer for Relief).

With the Complaint, plaintiffs move for a preliminary injunction (“PI’’). See Pls.’ Mot. for Preliminary Injunction (“Pls.’ Mot.”) [Dkt. #7]; Pls.” Mem. in Supp. of Pls.’ Mot. (“Pls.’ Br.”) [Dkt. #7-1]; Reply in Supp. of Pls.’ Mot. (“Pls.’ Reply”) [Dkt. #13]. Defendants oppose. See Defs.’ Opp. to Pls.’ Mot. (“Defs.’ Opp.”’) [Dkt. #12]. The Court held a hearing on plaintiffs’ motion on June 18, 2025. The motion is ripe for review.

STANDARD A preliminary injunction is “an extraordinary remedy that may only be awarded

upon a clear showing that the plaintiffis entitled to such relief.” Winter v. NRDC, 555 U.S. 7, 22 (2008). “A plaintiff seeking a preliminary injunction must establish that he is likely to succeed on the merits, that he is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in his favor, and that an injunction is in the public interest.” Huisha-Huisha v. Mayorkas, 27 F.4th 718, 727 (D.C. Cir. 2022) (quoting Winter, 555 U.S. at 20). The last two factors merge when the Government is the opposing party. Shawnee Tribe v. Mnuchin, 984 F.3d 94, 102 (D.C. Cir. 2021). ANALYSIS I. Likelihood of Success on the Merits Plaintiffs must make a clear showing not only of a likelihood of success on the merits but “a substantial likelihood of success on the merits.” Elec. Privacy Info. Ctr. v. Dep’t of Corrections, 928 F.3d 95, 104 (D.C. Cir. 2019) (emphasis added) (quoting Food & Water Watch, Inc. v. Vilsack, 808 F.3d 905, 913 (D.C. Cir. 2015)). That includes plaintiffs’ ability to successfully establish this Court’s jurisdiction. See id.

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