A U.S. federal court has issued a "temporary order" halting President Donald Trump's decision to place around 2,200 employees of the United States Agency for International Development (USAID) on administrative leave in an attempt to dismantle the agency.

The ruling, issued by Judge Carl Nichols, a U.S. District Court judge appointed by Trump, came just before midnight on Friday, which was the scheduled time for the implementation of the paid administrative leave for all direct employees of the agency worldwide, with some exceptions, according to Axios.

The court's decision followed a lawsuit filed by unions representing federal workers and Foreign Service employees, requesting a temporary restraining order against the administration's decision, known in Iraq as "state order.

The lawsuit named several senior officials, including President Trump, Treasury Secretary Scott Bessent, and newly appointed Acting Director of USAID Marco Rubio. The lawsuit accused the officials of illegally attempting to dismantle the agency, arguing that such a move exceeds presidential authority, as only Congress has the legal authority to dissolve or merge the agency with the State Department.

The unions warned in their complaint that the decision could lead to the loss of thousands of American jobs, endanger national security interests, and result in catastrophic humanitarian outcomes, with inevitable deaths if the administration's actions are not stopped, according to the lawsuit.

Iraq is expected to be directly affected by the halting and dismantling of USAID, as the agency announced late last year a $20 million investment over four years dedicated to Iraq, aimed at improving water and sanitation.