WASHINGTON — A federal judge announced Tuesday that the decision to cut down grants and staffing levels at a U.S. agency focused on investing in African small businesses is within legal bounds. U.S. District Judge Richard Leon dismissed requests to prolong a prohibition on the Trump administration’s attempts to remove leaders of the U.S. African Development Foundation (USADF), which funds small businesses in Africa with millions of dollars in investments.
The USADF was established as an independent entity by Congress in 1980 and operates under the oversight of a board whose members require confirmation by the U.S. Senate. The lawsuit, initiated by USADF President Ward Brehm, brings to light the debate over presidential authority to dislodge board members and downsize the agency, which currently has a staff of approximately 50 people.
According to Leon, maintaining a board, a president, and a handful of grants would satisfy legal obligations. However, he expressed doubts about the Trump administration’s power to appoint a temporary board chair. Recently, USADF endeavored to deny access to its Washington office to staff from the Department of Government Efficiency (DOGE), led by Elon Musk. DOGE staff gained access after returning with U.S. Marshals.
The judge has directed the government to have DOGE representatives explain the actions taken to ensure the agency maintains “minimum presence and function as required by law.” Leon indicated the likelihood of considering further arguments for a block as the case progresses.
Last month, President Trump issued an executive order targeting USADF and three other agencies for closure, seeking to fulfill campaign pledges to reduce federal government size. Legal representatives for the Trump administration claim that the USADF’s board has “done everything possible to avoid complying with the President’s directives” and stressed the need for the President to appoint acting officials to uphold the law.
In 2023, Congress earmarked $46 million for USADF to channel into small agricultural and energy infrastructure projects and other development ventures in 22 African nations. Court documents reveal USADF staff’s refusal to grant DOGE access to their systems, citing security and privacy reasons. Additionally, DOGE informed USADF last month about appointing Pete Marocco, a deputy administrator at USAID overseeing its dismantling, to lead USADF’s board.
Marocco, accompanied by other DOGE members, has already succeeded in dissolving the Inter-American Foundation (IAF), another independent organization. On the day of this action, a White House official informed IAF employees of Marocco’s new role as board chair, as stated in a congressional letter by Eddy Arriola, IAF’s board chair.
That same day, Marocco held an emergency board meeting outside IAF’s premises due to denied entry. In documents filed with the Federal Register, Marocco assumed roles as acting CEO and president of IAF, prompting the removal of the existing president. Since then, IAF ceased its grants and contracts, resulting in the termination of most of its 37-member workforce. Through 2024, IAF managed nearly $350 million in investments in Latin American and Caribbean regions, with over half of the funds sourced externally from nations or private supporters.
