The Trump administration announced Sunday that it will place nearly all U.S. Agency for International Development (USAID) employees worldwide on leave while eliminating at least 1,600 U.S.-based jobs, marking one of the most aggressive steps yet in President Donald Trump’s effort to shrink the federal government.

The move, backed by Trump’s cost-cutting ally Elon Musk, is part of a broader campaign to dismantle USAID, a six-decade-old agency responsible for foreign aid and development programs.

The decision follows a federal court ruling on Friday allowing the administration to proceed with its plan, despite legal challenges from employees and unions. U.S. District Judge Carl Nichols rejected an injunction that would have temporarily blocked the mass layoffs.

“As of 11:59 p.m. EST on Sunday, February 23, 2025, all USAID direct hire personnel, with the exception of designated personnel responsible for mission-critical functions, core leadership, and/or specially designated programs, will be placed on administrative leave globally,” according to internal notices sent to staff and reviewed by The Associated Press.

In addition to the furloughs, USAID confirmed plans to cut thousands of positions, initially estimating 2,000 U.S.-based job eliminations before revising the figure to 1,600 in a notice posted on its website. The administration did not clarify the discrepancy, and USAID and the State Department did not respond to requests for comment.

Deputy Administrator Pete Marocco, the Trump appointee leading USAID, stated that around 600 employees—mostly U.S.-based—would remain on the job to facilitate the agency’s winding down, including managing the return of USAID staff and their families from overseas assignments.

The cuts are part of a broader monthlong effort to dismantle USAID, which has already seen its Washington headquarters shuttered and thousands of global aid programs terminated following a freeze on all foreign assistance. Though a judge temporarily blocked the funding freeze, the administration has continued with structural overhauls.

Trump and Musk have defended the move, arguing that USAID’s work is wasteful and promotes a liberal agenda. However, lawsuits from government worker unions, contractors, and advocacy groups contend that the administration lacks the constitutional authority to dismantle an independent agency or terminate congressionally approved programs without legislative approval.

The fate of USAID now hangs in legal limbo as the administration presses forward with its sweeping government restructuring.