WASHINGTON — On Friday, a federal judge prevented the Trump administration from eliminating the independent Inter-American Foundation (IAF), which is responsible for distributing grants to community groups across Latin America and the Caribbean.
U.S. District Judge Loren AliKhan determined the administration lacked the authority to dismiss the head of the IAF, a role governed by a bipartisan nine-member board established by Congress. The Foundation, which has been operational for over half a century, has allocated $945 million to thousands of recipients across nearly 36 countries. AliKhan, appointed by President Joe Biden, asserted that only the board had the right to terminate its head.
In the preliminary injunction, AliKhan noted, “Because neither President Trump nor Mr. Marocco had the authority to fire her from her position as the president of the IAF, Ms. Aviel is likely to succeed on the merits of her case.” So far, the White House has not commented on the ruling.
In a move to substantially downsize the federal government, President Trump signed an executive order on February 19, which included the IAF among the targets for cuts. The next day, representatives from Elon Musk’s Department of Government Efficiency visited the foundation’s offices.
Soon after, all board members were removed, and Sara Aviel, the President and CEO of the IAF, was fired. Pete Marocco was named acting board chair and appointed himself as Aviel’s interim replacement. The judge’s Friday ruling stated that Marocco’s attempts to end most IAF grants and dismiss the majority of employees had no legal standing.
AliKhan emphasized, “To argue that the IAF remains functioning when it has one employee, one grant, and little else is comically difficult to believe.” She also prohibited the White House from reappointing Marocco as an “acting” board member unless Senate-confirmed.
More than 400 organizations lost their IAF grants, and nine filed lawsuits to maintain the foundation. These groups include those working against domestic and school-related violence in Peru, providing loans to rural women in Mexico, and teaching sustainable agricultural practices to small farmers.
The groups’ attorneys stated that many of the organizations had already conducted layoffs, and some were considering closure. AliKhan requested the grantees to decide by Monday if they wished to continue their litigation.
The government argued that Trump acted lawfully in dismissing board members and appointing Marocco, who, in turn, had the authority to remove Aviel. They claimed Aviel’s reinstatement would counteract Trump’s plans to trim the government.
A Justice Department attorney argued, “Moreover, the public interest would be undermined if the President did not have a Foundation Board and leadership appointed by that board who holds the President’s confidence and, accordingly, will effectively serve him in executing his duties as chief executive.”
AliKhan stated the administration had ignored Congressional rules regarding IAF funding, emphasizing that downsizing mandates included consultative discussions with Congressional committees.
“While pursuing government efficiency is a valid goal, it must be carried out lawfully,” she insisted.
The U.S. African Development Foundation, a similar entity to the IAF, also faced leadership changes. Its head, Ward Brehm, sued to retain his position after being dismissed. However, on March 11, U.S. District Judge Richard Leon refused to block Brehm’s termination pending case resolution.