Personal services contractors whose USAID contracts were terminated by notices issued between February 12 and April 24, 2025 are covered by a certified class action alleging the United States ended those contracts in bad faith. The class is opt-in: contractors must submit an opt-in form by December 7, 2026 to be included, and there is no money to claim yet.
Allegations Only · No Settlement or Judgment
This article describes a class action against the United States. The statements below are unproven allegations. The court has certified a class and allowed the claims to proceed, but it has not decided whether the terminations were unlawful, and there is no settlement or money to claim. The United States denies the allegations. This page is informational and is not legal advice.
What Is This About?
The U.S. Court of Federal Claims has certified a class action brought by personal services contractors (PSCs) who worked for the U.S. Agency for International Development and lost their contracts in the agency's 2025 wind-down. The case is Danziger et al. v. United States, No. 25-1241C, before Judge David A. Tapp. The contractors allege that the United States terminated more than 1,000 personal services contracts en masse between February and April 2025 using boilerplate termination notices, and that it did so in bad faith or as an abuse of discretion, which they say turns the terminations into a breach of contract.Unlike most consumer class actions, this one does not include people automatically. The court-approved notice says that a contractor who does nothing will not be part of the class. To be included, a contractor must submit a Class Action Opt-In Notice Form by December 7, 2026.
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Who Is in the Class?
The court certified this class: all personal services contractors that were performing work for USAID under Personal Services Contracts at the time their contracts were terminated by USAID through Termination Notices issued between February 12, 2025 and April 24, 2025.Meeting that definition is not enough on its own. A contractor becomes a class member only by submitting the opt-in form on time. The notice was sent to contractors identified in government records, but the opt-in form makes each person responsible for confirming that they qualify, and it is signed under penalty of perjury. The four named plaintiffs, who serve as class representatives, are contractors based in the United States and abroad who say they filed certified claims under the Contract Disputes Act that the government denied or did not answer within 60 days.
What Do the Contractors Allege?
According to the amended complaint, beginning on or around February 12, 2025, contractors received termination notices stating their contracts were ended "for Convenience of the Government" because continuing them was no longer in the government's best interests. The contractors allege those notices were mass-produced and that the real reasons were animus, malice, pretext or unlawful conduct tied to the effort to dismantle or reorganize USAID. The complaint cites public statements about the agency by President Trump, Elon Musk and the White House, and alleges the terminations were ordered by the Department of Government Efficiency team at the direction of the White House, the State Department and agency leadership.The contractors seek breach-of-contract damages, including lost compensation for the remaining period of each terminated contract where applicable, plus any termination costs owed under the contracts that the government has not paid. They also ask for attorneys' fees and costs.
The United States denies the allegations and says the terminations were lawful uses of its authority to end contracts for convenience. In moving to dismiss, it argued that the contractors had not alleged that the contracting officers who issued the terminations intended to injure them, and that a policy decision about the agency's future is different from a contracting officer's decision to end a contract.
What Has the Court Decided?
On April 10, 2026, Judge Tapp denied the government's motion to dismiss. The court held that the amended complaint plausibly alleged bad faith and abuse of discretion, which is all the contractors had to show at that stage, and said whether the public statements actually meet the demanding legal standard for proving bad faith "awaits another day."On May 7, 2026, the court granted class certification, finding that the proposed class met each requirement of the court's Rule 23 and that a class action was the better way to resolve the claims. It appointed Stephen J. McBrady of Crowell & Moring LLP as class counsel. The court-approved notice and opt-in form were then sent to contractors, with JND Legal Administration handling the opt-in forms.
How Do You Opt In?
Contractors can submit the Class Action Opt-In Notice Form online through the official USAID Class Action website, or download the form there and send it by first-class mail or courier. The form must be submitted, postmarked or delivered by December 7, 2026. It asks for:• the contractor's full legal name;
• the PSC contract number or numbers, if known;
• the date or dates of the termination notice;
• contact information, and the name of an authorized representative if signing for an entity;
• a signed declaration, under penalty of perjury, that the contractor wants to opt in and was performing work for USAID under a personal services contract when it was terminated by a notice issued in the class period.
The mailed notice also carries a Unique ID at the top of the form. Contractors unsure whether they are in the class can ask class counsel through the contact details on the official website.
What Happens Next?
The case is in the pretrial phase, where both sides exchange information and present legal arguments. If it is not resolved by summary judgment, settlement or otherwise, the contractors will have to prove their claims at trial; the court has not set a trial date, and the notice says the parties do not know how long the case will take. Class members who opt in do not need to attend. If the class obtains money or other relief, those who opted in on time will be told how to receive their share; any fees awarded to class counsel would be deducted from the recovery.Questions
Why do I have to opt in when most class actions include people automatically?
Cases against the United States in the Court of Federal Claims run under that court's own Rule 23, which requires class members to ask to be included. A contractor who does not submit the Class Action Opt-In Notice Form by December 7, 2026 is not a class member, will not share in any recovery, and is not bound by the outcome.
Does opting in cost anything?
No out-of-pocket payment is required. According to the court-approved notice, if the class wins money, class counsel will ask the court for fees that would be deducted from the recovery, reducing each class member's share proportionately. If the case is unsuccessful, class members owe nothing for attorneys' fees or costs.
What do I give up by opting in?
A contractor who opts in is bound by the result, whether it is a settlement, a favorable judgment or a loss, and cannot bring a separate lawsuit against the United States on the same claims. A contractor who stays out keeps the right to sue separately, with their own lawyer or without one.
I do not know my PSC contract number. Can I still opt in?
Yes. The opt-in form asks for the contract number only if known. It does ask for the contractor's full legal name, the date or dates of the termination notice, contact information and a signature declaring under penalty of perjury that the contractor was working under a USAID personal services contract when it was terminated by a notice issued between February 12 and April 24, 2025.
Has the court decided the terminations were unlawful?
No. The court has ruled only that the contractors stated plausible claims and that the case can proceed as a class action. Whether the United States acted in bad faith or abused its discretion is still to be decided, and the United States denies the allegations. No trial date has been set.
Sources
• USAID Class Action, official case website• Court-approved Class Notice
• Class Action Opt-In Notice Form
• Memorandum Opinion and Order Granting Class Certification, ECF No. 25 (May 7, 2026)
• Memorandum Opinion and Order Denying the Motion to Dismiss, ECF No. 20 (April 10, 2026)
• Amended Class Action Complaint, ECF No. 11
