The Trump administration must promptly repay $2 billion in foreign aid after the Supreme Court lifted a previous funding freeze, leaving officials scrambling to meet a looming Monday deadline set by a federal judge.
Key Takeaways
- U.S. District Judge Amir Ali has ordered the Trump administration to expedite nearly $2 billion in payments to USAID contractors by Monday, rejecting government claims that the timeline is “impossible.”
- The Supreme Court rejected the administration’s attempt to maintain its foreign aid funding freeze in a 5-4 vote, instructing the lower court to clarify compliance requirements.
- Projects in Ukraine, Nigeria, Vietnam, Nepal, Kenya, Uganda, Ghana, and Ethiopia are affected by the payment freeze that began with President Trump’s January 20th executive order.
- Plaintiffs argue the administration dismantled payment systems and purged USAID staff, deliberately hindering the repayment process after canceling thousands of contracts.
- Legal questions remain about whether the administration can terminate congressionally allocated funding for foreign aid projects.
Court Orders Immediate Action on Foreign Aid Payments
After a four-hour hearing, U.S. District Judge Amir Ali ordered the Trump administration to make substantial payments toward nearly $2 billion in frozen foreign aid by Monday. The ruling follows a Supreme Court decision that lifted the administration’s funding freeze affecting USAID and State Department partners. The Trump administration had previously missed a February 26 deadline for initiating these payments, leading to escalating legal pressure from contractors who performed services but remained unpaid under contracts frozen by a January 20 executive order.
Justice Department attorneys argued the payment timeline was “impossible” to meet, citing reduced staffing from forced leaves and firings at USAID. Judge Ali dismissed these justifications, noting the government had already managed to pay out over $70 million in a short time frame. He suggested the administration could easily meet the deadline by recalling idled workers, directly addressing what plaintiffs described as deliberate administrative obstacles created to hinder repayments.
US judge orders Trump admin to pay portion of $2B in foreign aid by Monday https://t.co/xDklHXOgkz
— Fox News (@FoxNews) March 7, 2025
Supreme Court Intervention and Legal Battles
The Supreme Court voted 5-4 to reject an emergency application from the Justice Department that sought to maintain the foreign aid freeze. While the high court did not mandate immediate payment of the full $2 billion, it affirmed the federal judge’s authority to order these payments and instructed Judge Ali to clarify specific compliance requirements. Chief Justice John Roberts had initially issued an administrative stay on the lower court’s ruling before the final decision was reached.
“It would be an ‘earth-shaking, country-shaking proposition to say that appropriations are optional,” said U.S. District Judge Amir Ali.
Justice Samuel Alito, writing for the dissenting minority, expressed concern about giving a district court judge “unchecked power to compel the government to pay out … 2 billion taxpayer dollars.” The contractors who brought the lawsuit argued that the government had violated the Administrative Procedure Act by leaving them unpaid for completed work. They emphasized that urgent payments were needed to prevent layoffs and ensure the safety of personnel working in foreign countries.
Controversy Over Foreign Aid Review and Terminations
The funding freeze originated from President Trump’s executive order on January 20, which initially implemented a blanket pause on foreign aid disbursements pending review. Administration officials later replaced this with what they described as individualized determinations, resulting in the cancellation of thousands of contracts and grants. The affected projects span multiple countries including Ukraine, Nigeria, Vietnam, Nepal, Kenya, Uganda, Ghana, and Ethiopia.
“The funding freeze, it’s not continuing. It’s over,” said Indraneel Sur.
Nonprofit organizations and businesses contracted by USAID contend that these cancellations were not individually reviewed as claimed, but rather represented a permanent implementation of program shutdowns. A key legal question at stake is whether the administration has the authority to terminate projects with funds specifically allocated by Congress. Multiple plaintiffs, including the AIDS Vaccine Advocacy Coalition and Global Health Council, are seeking both back payment and reversal of contract terminations as part of their legal action.
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
