Federal Judge Blocks Trump Administration's Attempt to Slash Community Grant Agency

A federal judge prevented the Trump administration from dismantling the Inter-American Foundation, an agency that funds community projects in Latin America and the Caribbean. Despite an executive order for government cuts, the judge ruled the administration lacked authority to remove the foundation's leadership or terminate its grants.


Devdiscourse News Desk | Washington DC | Updated: 05-04-2025 01:17 IST | Created: 05-04-2025 01:17 IST
Federal Judge Blocks Trump Administration's Attempt to Slash Community Grant Agency
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The Trump administration's move to dismantle the Inter-American Foundation faced a legal setback on Friday, as a federal judge ruled against the attempt. This independent agency has been pivotal in distributing grant money for community development in Latin American and Caribbean nations.

US District Judge Loren AliKhan emphasized that the administration did not possess the requisite authority to remove the foundation's head, a decision guided by a bipartisan board constituted over 50 years ago. The foundation has successfully distributed $945 million across diverse projects in approximately three dozen countries.

Following President Trump's executive order to minimize government size, the removal of board members and staff led to significant operational disruptions. However, legal intervention has momentarily halted these efforts, ensuring the continuation of vital community grants.

(With inputs from agencies.)

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