A federal judge blocked President Trump’s takeover of a federal agency that invests in Latin America and the Caribbean, finding Friday that he likely went beyond his authority.

U.S. District Judge Loren AliKhan ordered the administration indefinitely reinstate Sara Aviel, the ousted president of the Inter-American Foundation (IAF), and stop various other efforts to gut the foundation as her lawsuit proceeds.

“Because accepting Defendants’ arguments would leave parts of the Constitution in tatters, Ms. Aviel has shown a substantial likelihood of success on the merits,”said AliKhan, an appointee of former President Biden.

Established by Congress in 1969 as a nonprofit corporation, the IAF funds........

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