Elon Musk scores a major victory as the Fourth Circuit Court sides with the Trump administration on slashing USAID’s massive $40 billion budget. The ruling reaffirms President Trump’s authority to tackle bloated government agencies while validating Musk’s controversial role within the Department of Government Efficiency.
At a glance:
• The Fourth U.S. Circuit Court of Appeals overturned a previous injunction, allowing Trump and Musk to proceed with USAID budget cuts
• Secretary of State Marco Rubio announced USAID will be shuttered with essential functions transferred to the State Department by July 1
• The agency had been criticized for straying from its original mission and funding left-wing initiatives
• Court ruled that Musk is acting as a Senior Adviser to President Trump, not requiring Senate confirmation
• The State Department will reorient foreign assistance programs to better align with U.S. interests and priorities
Court Delivers Major Win for Trump Administration
The Trump administration secured a significant legal victory when the Fourth U.S. Circuit Court of Appeals unanimously stayed a lower court’s injunction that had temporarily halted plans to reduce USAID’s budget. The three-judge panel determined that while Elon Musk’s role in government may be unconventional, that doesn’t necessarily make it unconstitutional.
U.S. Circuit Judge Marvin Quattlebaum wrote in the court’s opinion that the administration’s actions regarding USAID likely fall within constitutional boundaries. This ruling effectively clears the path for Musk and the Department of Government Efficiency (DOGE) to continue their mission of identifying and eliminating wasteful government spending.
Following last night's exchange in the Elon Musk constitutionality case in Maryland, where the judge said the Trump admin can't get around his order restricting DOGE people from taking actions at USAID by giving them new appointments/titles (see: https://t.co/gQeKt9ei1I), DOJ… pic.twitter.com/i1pmzsjEFE
— Zoe Tillman (@ZoeTillman) March 21, 2025
USAID Shuttered as State Department Takes Control
Following the court’s decision, Secretary of State Marco Rubio wasted no time announcing that USAID operations would be integrated into the State Department by July 1, with non-aligned functions being discontinued entirely. The agency, which had an annual budget of approximately $40 billion, had long faced criticism from conservatives for funding initiatives that didn’t align with America’s interests.
“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,” Rubio stated in an official announcement.
The State Department memo indicated that some USAID employees might be rehired for essential aid programs, while non-statutory positions would be eliminated. This restructuring aims to create a more streamlined approach to foreign assistance that prioritizes American interests and eliminates wasteful spending.
Musk’s Controversial Role Validated
At the center of the controversy is Elon Musk’s position within the Trump administration as a Senior Adviser to the President working within DOGE. A previous ruling by Judge Theodore Chuang had determined that Musk’s role required Senate confirmation, effectively halting his efforts to restructure USAID.
The appeals court’s decision overturns that ruling, validating the administration’s argument that Musk is merely serving as an adviser to President Trump. Twenty-six current and former USAID employees have filed a lawsuit against Musk, arguing he lacks the authority to dismantle the agency.
Musk has been characteristically outspoken about his mission, posting on his social media platform X that he had “spent the weekend feeding U.S.A.I.D. into the wood chipper.” His blunt approach has drawn criticism from Democrats but praise from supporters who applaud his efforts to drain the Washington swamp.
Rubio emphasized the administration’s commitment to responsible foreign policy, stating, “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.”
The case remains ongoing as the government appeals the original ruling, 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.”
