Federal Judge orders the Trump administration to make immediate payments on nearly $2 billion in foreign aid debts, challenging the President’s executive order and giving officials until Monday to comply.
Key Insights
- A U.S. District Court has mandated the Trump administration to disburse nearly $2 billion in payments for already completed foreign aid projects.
- The Supreme Court rejected the administration’s attempt to maintain the funding freeze in a 5-4 vote.
- Judge Amir Ali dismissed the Justice Department’s claims that the payment timeline was “impossible,” noting the government had already paid $70 million in a short timeframe.
- The administration’s efforts to cut programs worth up to $60 billion faces legal challenges regarding Congress’s budgetary authority.
- Contractors argue urgent payments are needed to prevent layoffs and ensure the safety of personnel in foreign countries.
Court Ruling Challenges Trump’s Foreign Aid Freeze
A significant ruling from U.S. District Court Judge Amir Ali has ordered the Trump administration to expedite payments on nearly $2 billion in foreign aid debts. The judge set a strict Monday deadline for partial payments after conducting a four-hour hearing on the matter. The case stems from President Trump’s January 20 executive order that initially implemented a blanket freeze on foreign aid funding, which was later replaced with a system of individualized determinations leading to the cancellation of thousands of contracts and grants through USAID and the State Department.
The administration’s legal team argued that the timeline for payments was “impossible” to meet, citing reduced staffing from forced leaves and firings at the agencies. Judge Ali directly challenged this assertion, pointing out that the government had already managed to pay out over $70 million in a relatively short period. The court suggested that the administration could meet the deadline by recalling idled workers to process the payments, highlighting the self-created nature of the staffing shortage.
US judge orders Trump admin to pay portion of $2B in foreign aid by Monday https://t.co/xDklHXOgkz
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Supreme Court Intervention and Constitutional Questions
The case reached the Supreme Court after the administration sought to maintain the funding freeze, but the high court rejected the emergency application in a 5-4 vote. The Supreme Court directed Judge Ali to clarify what obligations the government must fulfill and the feasibility of compliance deadlines. This decision effectively ended the administration’s attempt to continue withholding funds from projects that had already been completed in countries including Ukraine, Nigeria, Vietnam, Nepal, Kenya, Uganda, Ghana, and Ethiopia.
U.S. District Judge Amir Ali considered this an “earth-shaking, country-shaking proposition to say that appropriations are optional.”
Justice Samuel Alito expressed concern about giving a single district judge “unchecked power to compel the government to pay out … 2 billion taxpayer dollars.” Chief Justice John Roberts had initially issued an administrative stay on the lower court’s ruling before the full court made its determination. The case raises fundamental questions about the executive branch’s authority to withhold funds appropriated by Congress, with Judge Ali suggesting that considering appropriations optional would be constitutionally problematic.
Contractors’ Plight and Administration’s Response
The lawsuit was filed by nonprofits and businesses receiving USAID funding, including the AIDS Vaccine Advocacy Coalition and Global Health Council, with unions representing USAID workers filing separately. These contractors claim the government left them unpaid for completed work, violating the Administrative Procedure Act. They argue that urgent payments are needed not only to prevent layoffs but also to ensure the safety of personnel working in foreign countries who rely on these funds for security and operations.
Administration officials claim they have reviewed foreign aid contracts and made decisions, aiming to terminate as many as possible as part of a broader effort to cut programs worth up to $60 billion. However, plaintiffs argue that the administration dismantled systems needed for payments and purged USAID staff, deliberately hindering the repayment process. The administration had previously missed a February 26 deadline set by the lower court to begin payments, raising questions about compliance with court orders and the legality of terminating projects with funds specifically allocated by Congress.
Sources:
- Judge orders Trump administration to speed payment of USAID and State Dept. debts | AP News
- Supreme Court rejects Trump administration’s bid to avoid paying USAID contractors
- Trump administration must make some foreign aid payments by Monday, judge rules | Reuters
- US judge orders Trump admin to pay portion of $2B in foreign aid by Monday
