Emerging Legal Developments: Key Takeaways

First Published on February 14, 2025 on LinkedIn

Several significant legal developments are unfolding, raising urgent questions and implications. Below are key insights—strictly for discussion and not intended as legal advice.

USG Workers Abandoned Abroad

A recent affidavit in AFSA v. Trump details the harrowing experience of a USAID worker evacuated from Kinshasa, DRC, amid violence triggered by the administration’s funding freeze. USAID employees and their children fled as their homes were invaded, forced to abandon belongings and self-fund evacuations without any support from Washington. Many returned to the U.S. with no employment, housing, or financial stability.

These individuals were deployed under legitimate government contracts, yet their agreements were abruptly terminated without cause, leaving them with severe financial and emotional losses. Many had to break leases, withdraw children from schools, and forfeit personal property.

While contractors and consultants may, depending on the terms of their contract, have claims under the Federal Tort Claims Act (FTCA) for negligence, federal employees have far fewer options. The Federal Employees’ Compensation Act (FECA) only covers work-related injuries, not financial losses. Some federal employees may pursue claims through the Merit Systems Protection Board (MSPB), but the process is complex, time-sensitive, and difficult amid government instability.

The Reality

Many affected workers will likely be left without recourse, abandoned by the very government they served.

Cancellation of Stop-Work Orders by the Department of State

The D.C. Federal Court has issued a partial temporary restraining order (TRO) in AIDS Vaccine Advocacy Coalition, et al. v. U.S. DOS and Global Health Council, et al. v. Trump. The order has important but limited effects. First, it prevents DOS from enforcing terminations, suspensions, or stop-work orders on contracts existing as of January 19, 2025 or withholding payments for completed work under existing awards. However, the ruling does not prevent DOS or USAID from enforcing contract terms that allow for sudden termination, meaning terminations can still proceed under existing provisions—potentially with minimal notice.

What Does This Mean in Practice?

1. Terminations Will Still Happen

Most U.S. government contracts include termination clauses allowing for rapid cancellation with minimal notice. Agencies can still sever agreements by citing these provisions, though the process may take time and resources.

Given the Cruz-led NSF grant investigation, where contracts referencing biodiversity were flagged due to so-called “illegal DEI terms,” DOS may simply run keyword searches to justify terminations rather than conduct thorough reviews.

2. Unpaid Work & Financial Uncertainty

Even if organizations technically have the right to continue working, funding remains frozen. Payments may be delayed indefinitely, with no clear resolution. Mounting a legal challenge to secure funds already owed—while simultaneously covering payroll and operational costs—may be impossible for many organizations.

3. No Guidance or Accountability

With DOS staff furloughed or laid off, there is no one left to clarify how this order applies. While larger organizations may have legal teams to navigate the uncertainty, smaller NGOs and contractors will likely be left in limbo, unable to access funding or legal recourse.

Bottom Line

While the TRO provides some temporary protections and is an important step toward holding the USG accountable for the harm it has caused (for example, the decision’s findings may support negligence claims under the FTCA), it does not guarantee job security, sustainability of work and funding stability, or timely payments. The legal and logistical uncertainty will disproportionately impact smaller organizations and individual contractors, leaving many struggling to secure what they are rightfully owed.

As this unfolds, affected organizations and individuals will need to assess their legal options, monitor agency actions, and prepare for continued disruption—with little expectation of support from Washington.