Judge blocks Trump from dismantling agency that funds community groups in Latin American countries

WASHINGTON (AP) — A federal judge agreed on Friday to block the Trump administration from dismantling an independent agency that distributes grant money to community development groups in Latin American and Caribbean countries.

U.S. District Judge Loren AliKhan ruled that the administration doesn’t have the authority to remove the head of the Inter-American Foundation, which is governed by a bipartisan nine-member board.

Congress created the foundation more than 50 years ago. It has disbursed $945 million to thousands of grant recipients in roughly three dozen countries.

AliKhan, who was appointed by President Joe Biden, found that Congress had only given the foundation’s board the authority to fire its head.

“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,” AliKhan wrote in the preliminary injunction.

The White House did not immediately respond to a message seeking comment.

On Feb. 19, President Donald Trump signed an executive order calling for dramatically reducing the size of the federal government. It listed the IAF as one of the agencies targeted for cuts. Representatives of billionaire Trump advisor Elon Musk’s Department of Government Efficiency showed up at the foundation’s offices on Feb. 20.

Several days later, the White House removed all of the agency’s board members, fired Sara Aviel as president and CEO of the IAF and appointed Pete Marocco as the agency’s acting board chair. Marocco later appointed himself as Aviel’s temporary replacement.

AliKhan's order Friday found that Marocco's actions ending all but one of IAF's grants and moving to terminate most employees had no legal effect.

“To argue that the IAF remains functioning when it has one employee, one grant, and little else is comically difficult to believe,” AliKhan wrote.

She also prohibited the White House from reinstating Marocco as an “acting” IAF board member, except if he were confirmed by the Senate.

Nine of more than 400 organizations that had their IAF grants canceled also sued to preserve the foundation. Those plaintiffs include groups that oppose violence against women and in schools in Peru, extend credit to women in rural Mexico and teach small farmers sustainable agricultural techniques.

“Several have already had to lay off staff and several are considering shutting down entirely,” their attorneys wrote.

AliKhan asked those grantees to tell the court on Monday whether they wanted to proceed with their case.

Government attorneys said Trump lawfully removed the board members and appointed Marocco, who had the authority to remove Aviel. They argued that Aviel’s court-ordered reinstatement would undermine Trump’s goals to reduce the size of the government.

“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,” a Justice Department attorney wrote.

AliKhan wrote that the government had disregarded directions from Congress when it appropriated funds to IAF that the agency could not be downsized without consulting with Congressional committees.

“While pursuing government efficiency is a valid goal, it must be carried out lawfully.” she said.

The administration also fired the head of the United States African Development Foundation, a sister organization of the IAF. Ward Brehm sued to keep his job as president of the USADF. On March 11, U.S. District Judge Richard Leon declined to extend an order blocking Brehm’s firing pending a ruling on the merits of his case.

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Associated Press writers Lindsay Whitehurst and Thalia Beaty contributed.