New Delhi, Aprail 5: A US federal judge on Friday blocked former President Donald Trump’s attempt to shut down the Inter-American Foundation (IAF), a US government agency focused on grassroots development in Latin America and the Caribbean. The court ruled that the Trump administration likely exceeded its authority when it removed the agency’s leadership and froze its funding.
US District Judge Loren AliKhan, appointed by President Joe Biden, ordered the immediate reinstatement of Sara Aviel as president and CEO of the IAF. She also barred the Trump administration from further attempts to dismantle the agency. “Because neither President Trump nor Mr. Marocco had the authority to dismiss her… Ms. Aviel is likely to prevail in her case,” AliKhan wrote, as reported by the Associated Press.
Established by Congress in 1969, the IAF is an independent federal agency that has awarded over $945 million in grants across more than 30 countries, aimed at tackling poverty, reducing migration, and supporting stability in the region.
Trump issued an executive order on February 19 to streamline the federal government, naming the IAF as one of the agencies to be “eliminated to the maximum extent consistent with applicable law,” according to The Hill. The next day, officials from the Department of Government Efficiency (DOGE), led by advisor Elon Musk, arrived at IAF’s offices.
Soon after, the administration dismissed the IAF board, fired Aviel, and named Peter Marocco as interim chair. Marocco, who previously worked on dismantling the US Agency for International Development (USAID), installed himself as acting CEO. The Hill reported that only one staff member and a single active grant remained at IAF after these actions.
Judge AliKhan’s ruling voided Marocco’s appointments and actions, including the termination of most staff and cancellation of nearly all active grants. Aviel’s legal team warned that such cuts would cause irreversible damage to the foundation’s partnerships and credibility in the region.
Nine grantee organizations have also filed lawsuits to keep the IAF intact, including groups working to reduce school violence in Peru, support rural women in Mexico, and train smallholder farmers. Some have already begun layoffs or are on the verge of shutting down.
The Justice Department defended the Trump administration’s actions as lawful and aligned with broader goals to reshape federal leadership. However, Judge AliKhan firmly rejected that stance. “That interpretation undermines the Appointments Clause,” she stated, describing the administration’s claim to unchecked executive authority as “frightening,” The Hill reported.
