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

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

2025-04-05 04:32 Last Updated At：04:41

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.

Associated Press writers Lindsay Whitehurst and Thalia Beaty contributed.

US stocks dip after careening through a manic day following Trump's latest tariff threat

2025-04-08 05:16 Last Updated At：05:21

NEW YORK (AP) — U.S. stocks careened through a manic Monday after President Donald Trump threatened to crank his tariffs higher, despite a stunning display showing how dearly Wall Street wants him to do the opposite.

The S&P 500 slipped 0.2% at the end of a day full of heart-racing reversals as battered financial markets try to figure out what Trump’s ultimate goal is for his trade war. If it’s to get other countries to agree to trade deals, he could lower his tariffs and avoid a possible recession. But if it’s to remake the economy and stick with tariffs for the long haul, stock prices may need to fall further.

The Dow Jones Industrial Average fell 349 points, or 0.9%, and the Nasdaq composite edged up by 0.1%.

All three indexes started the day sharply lower, and the Dow plunged as many as 1,700 points following even worse losses elsewhere in the world. But it suddenly surged to a gain of nearly 900 points in the late morning. The S&P 500, meanwhile, went from a loss of 4.7% to a leap of 3.4%, which would have been its biggest jump in years.

The sudden rise followed a false rumor that Trump was considering a 90-day pause on his tariffs, one that a White House account on X quickly labeled as “fake news.” That a rumor could move trillions of dollars’ worth of investments shows how much investors are hoping to see signs that Trump may let up on tariffs.

Stocks quickly turned back down, and shortly afterward, Trump dug in further and said he may raise tariffs more against China after the world’s second-largest economy retaliated last week with its own set of tariffs on U.S. products.

It’s a slap in the face to Wall Street because it suggests Trump may not care how much pain he inflicts on the market. Many professional investors had long thought that a president who used to crow about records reached under his watch would pull back on policies if they sent the Dow reeling.

On Sunday Trump told reporters aboard Air Force One that he wasn’t concerned about a sell-off and that “sometimes you have to take medicine to fix something.”

Trump has given several reasons for his stiff tariffs, including to bring manufacturing jobs back to the United States, which is a process that could take years. Trump on Sunday said he wanted to bring down the numbers for how much more the United States imports from other countries versus how much it sends to them.

Indexes nevertheless did keep swinging between losses and gains Monday after Trump’s latest tariff threat, in part because hope still remains in markets that negotiations may still come.

“We’re not calling the all-clear at all, but when you have this type of volatility in the market, of course you’re going to have back and forth” in markets not just day to day but also hour to hour, said Nate Thooft, a senior portfolio manager at Manulife Investment Management.

“We’re all waiting for the next bit of information,” he said. “Literally a Truth Social tweet or an announcement of some sort about real negotiations could dramatically move this market. This is the world we live in right now.”

All that seemed certain Monday was the financial pain hammering investments around the world for a third day after Trump announced tariffs in his “Liberation Day.”

Stocks in Hong Kong plunged 13.2% for their worst day since 1997. A barrel of benchmark U.S. crude oil dipped below $60 during the morning for the first time since 2021, hurt by worries that a global economy weakened by trade barriers will burn less fuel. Bitcoin sank below $79,000, down from its record above $100,000 set in January, after holding steadier than other markets last week.

Trump’s tariffs are an attack on the globalization that’s remade the world’s economy, which helped bring down prices for products on the shelves of U.S. stores but also caused production jobs to leave for other countries.

It also adds pressure on the Federal Reserve. Investors have become nearly conditioned to expect the central bank to swoop in as a hero by slashing interest rates to protect the economy during every downturn. But the Fed may have less freedom to act this time around because inflation remains higher than the Fed would like. And while lower interest rates can goose the economy, they can also put upward pressure on inflation.

“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” JPMorgan CEO Jamie Dimon, one of the most influential executives on Wall Street, wrote in his annual letter to shareholders Monday. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

In the bond market, Treasury yields rallied to recover some of their sharp drops from earlier weeks. Some of the big move may have been because of reduced expectations for cuts to interest rates by the Fed. Some analysts also said it could be due to investors outside of the United States wanting to pare their U.S. investments.

The yield on the 10-year Treasury jumped to 4.20% from 4.01% late Friday.

Earlier in the day, the S&P 500 briefly fell more than 20% below its record set less than two months ago. If it finishes a day below that bar, it would be a big enough drop that Wall Street has a name for it. A “bear market” signifies a downturn that’s moved beyond a run-of-the-mill 10% drop, which happens every year or so, and has graduated into something more vicious.

The S&P 500, which sits at the heart of many investors’ 401(k) accounts, is coming off its worst week since COVID began crashing the global economy in March 2020.

All told, the index fell 11.83 points Monday to 5,062.25. The Dow Jones Industrial Average dropped 349.26 to 37,965.60, and the Nasdaq composite added 15.48 to 15,603.26.

Kurtenbach reported from Bangkok. McHugh reported from Frankfurt, Germany. Associated Press writers Ayaka McGill, Paul Harloff, Matt Ott and Jiang Junzhe also contributed.