DOGE faces new lawsuit over USIP takeover

Former employees and donors of the U.S. Institute of Peace filed a lawsuit against the Department of Government Efficiency, adding to the growing battle over the independent organization. 

The new suit includes several former USIP directors, foreign personnel and one donor, all of whom say DOGE’s takeover of the institute is illegal and threatens the safety of diplomats abroad. 

Lawyers for the plaintiffs wrote that they “are suffering from ongoing irreparable harm by the unlawful actions of defendants. They are at risk of severe health consequences from the abrupt cessation of health insurance, loss of immigration status, inability to recover economic redress, reputational harm, physical danger and more.”

Acting on President Trump’s Feb. 19 executive order targeting independent agencies, DOGE employees entered USIP’s building on the National Mall on March 14, evicting nearly all staffers and canceling all functions at the organization. 

Since then, nearly all USIP employees have received termination notices, with only a handful of staffers remaining to manage the return of USIP employees abroad. DOGE’s Nate Cavanaugh, acting president of USIP, has also initiated the transfer of USIP’s assets to the General Services Administration. 

The new suit, which was filed on Friday, said the cessation of USIP activities and mass firings have stranded foreign workers, leaving them vulnerable in active conflict zones. 

“But this isn’t just about health care or lost jobs — it’s about defending the space for independent institutions like USIP to support peace in the world’s most fragile places,” said Sasha Pippenger, former director of peace processes at the agency. “While USIP remains shuttered, peace efforts stall, frontline mediators lose support, and decades of research go unused. DOGE took over by force, then fired over 250 of us late on a Friday night without understanding our mission.”

The plaintiffs want a jury trial to stop DOGE’s takeover and dismantling of the agency.

The lawsuit includes Chester Crocker, a USIP donor and former assistant secretary of state. In the 40 years since its founding, USIP has received significant private funding through donations, mostly going toward its building. By seizing USIP’s assets, DOGE may have opened itself up to suits and complaints from donors who don’t approve of the institute’s dismantling. 

George Foote, a longtime outside counsel for USIP, said angry donors have already started taking back their donations.

Since the takeover of the institute, lawyers for USIP have sued DOGE and its leaders for what they see as an unlawful asset seizure. The lawyers assert that DOGE and the White House have no authority over USIP. The institute was set up by Congress as an independent organization in 1984. The organization focuses on fostering peace through policy analysis.

The White House, by contrast, says USIP is a federal organization, hence DOGE’s actions are consistent with Mr. Trump’s executive order. The White House didn’t respond to a request for comment regarding Thursday’s suit.

Last month, U.S. District Judge Beryl Howell rejected USIP’s filing for a temporary restraining order to stop DOGE’s takeover and refused to stop the asset transfer, preferring to read the legal briefs first.