Federal Judge Amir Ali orders the Trump administration to repay nearly $2 billion in foreign aid by Monday, rejecting the Justice Department’s claims that such rapid payments are impossible after the Supreme Court overturned Trump’s funding freeze.
Quick Takes
- A US District Court judge ordered the Trump administration to make immediate payments on nearly $2 billion owed to USAID contractors after a Supreme Court ruling
- The funding freeze originated from a January 20 executive order by President Trump that was later replaced with targeted cancellations
- Justice Department arguments for payment delays were rejected by Judge Ali, who cited the administration’s ability to quickly disburse $70 million previously
- The administration’s efforts to terminate foreign aid contracts may face legal challenges regarding Congressional appropriations
- Nonprofits claim the administration dismantled payment systems and purged staff, complicating the repayment process
Court Mandates Swift Repayment After Supreme Court Decision
U.S. District Court Judge Amir Ali has ordered the Trump administration to begin immediate payments on nearly $2 billion in foreign aid debts following a Supreme Court decision that rejected the administration’s attempt to maintain a funding freeze. The ruling came after a four-hour hearing where Justice Department lawyers argued the timeline was “impossible” to meet. Judge Ali disagreed, pointing out that the government had already managed to pay out over $70 million in a short timeframe. The administration had previously missed a February 26 deadline for beginning these payments, prompting further court action.
The Supreme Court, in a 5-4 vote, rejected an emergency application from the Justice Department after Judge Ali’s earlier rulings to unfreeze funds that had been halted by President Trump’s executive order. While the high court supported the federal judge’s authority to order the Trump administration to pay the $2 billion to USAID contractors, it did not mandate immediate payment, instead instructing Judge Ali to “clarify what obligations the government must fulfill” and consider “the feasibility of any compliance deadlines.”
US judge orders Trump admin to pay portion of $2B in foreign aid by Monday https://t.co/Ze0ponL4PL
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Foreign Aid Review Sparks Legal Battle
The funding dispute originated from an executive order issued by President Trump on January 20, which initially imposed a blanket freeze on foreign aid payments. The administration subsequently replaced this freeze with what it described as individualized determinations, leading to the cancellation of thousands of contracts and grants across multiple countries. The payment freeze affects projects in Ukraine, Nigeria, Vietnam, Nepal, Kenya, Uganda, Ghana, and Ethiopia. As part of a broader review, the administration has been examining USAID’s spending portfolio, reportedly deciding to cut programs worth up to $60 billion.
“It would be an “earth-shaking, country-shaking proposition to say that appropriations are optional,” U.S. District Judge Amir Ali said.
Plaintiffs in the case, including the AIDS Vaccine Advocacy Coalition and Global Health Council, argue that these contract cancellations were not individually reviewed as claimed and effectively made permanent the shutdown of numerous programs. They are seeking both back payment for work already completed and the reversal of contract terminations. The administration maintains that it has resumed USAID payments but faces delays due to reduced staffing resulting from forced leaves and firings, a claim Judge Ali suggested could be addressed by recalling idled workers.
Constitutional Questions and Humanitarian Concerns
The legal challenge has raised significant questions about the administration’s authority to terminate projects with funds already allocated by Congress. Nonprofit organizations and businesses receiving USAID funding filed the lawsuit, with unions representing USAID workers filing separately. The contractors argue that the government has left them unpaid for completed work, violating the Administrative Procedure Act. Justice Samuel Alito expressed concern in his dissent about giving a single district judge “unchecked power to compel the government to pay out … 2 billion taxpayer dollars.”
Contractors have argued that urgent payments are needed not only to prevent layoffs among their staff but also to ensure the safety of personnel operating in foreign countries. The plaintiffs have also alleged that the administration dismantled systems necessary for making payments and purged USAID staff, creating additional obstacles to the repayment process. Administration officials maintain that a thorough review of foreign aid contracts is necessary, with the stated aim of terminating as many contracts as possible that do not align with current priorities, though this approach may face further legal challenges regarding Congressional funding authority.
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
