The U.S. Supreme Court has rejected the Trump administration’s bid to withhold nearly $2 billion in payments owed to contractors and organizations working under the U.S. Agency for International Development (USAID). This decision, stemming from a legal misstep by Trump’s legal team, underscores a significant financial and political setback for the administration.
Background of the Case
- Shortly after President Donald Trump began his second term, his administration attempted to freeze USAID funds, citing policy realignment and budgetary concerns. This move affected contractors and nonprofits that had already completed work under congressionally approved foreign aid programs.
- U.S. District Judge Amir Ali ruled that the administration’s actions were unlawful and ordered the government to disburse the funds by February 26, 2025. The administration appealed this ruling but failed to challenge the original February 13 order, which laid the legal foundation for enforcing the payments.
Supreme Court Ruling
- In a narrow 5-4 decision, the Supreme Court upheld Judge Ali’s ruling, requiring the administration to pay contractors for completed work. Chief Justice John Roberts and Justice Amy Coney Barrett joined the court’s liberal justices in rejecting Trump’s emergency request to block the payments128.
- The court emphasized that Judge Ali’s temporary restraining order remains valid while lower court proceedings continue. It instructed Ali to clarify compliance obligations and consider practical timelines for payment36.
Legal Misstep by Trump’s Team
- The Trump administration’s legal team, led by Acting Solicitor General Sarah Harris, made a critical error by focusing their appeal on enforcing Ali’s February 25 order rather than contesting his initial February 13 ruling. This oversight effectively conceded the legality of the earlier order, limiting their arguments before the Supreme Court58.
- Justice Samuel Alito, in dissent, criticized this approach, arguing that Ali may have overstepped his authority but acknowledging that the administration failed to address key procedural issues in its appeal5.
Implications
- Financial Impact:
- Political Ramifications:
- Judicial Oversight:
- The case demonstrates judicial checks on executive actions, particularly when they conflict with legislative intent or established legal obligations.
While this decision represents a victory for USAID contractors and global aid initiatives, it also underscores challenges within Trump’s administration in navigating complex legal disputes. Further hearings in lower courts are expected as broader questions about USAID’s future remain unresolved.
Citations:
- https://www.nbcnews.com/politics/supreme-court/supreme-court-rejects-trump-administrations-bid-avoid-paying-usaid-con-rcna194230
- https://www.msnbc.com/deadline-white-house/deadline-legal-blog/supreme-court-foreign-aid-freeze-roberts-trump-rcna194228
- https://www.dw.com/en/us-supreme-court-blocks-trumps-freeze-of-2-billion-in-aid/live-71837015
- https://www.politico.com/news/2025/03/05/supreme-court-rebuffs-trump-in-fight-over-foreign-aid-bills-00213059
- https://www.vox.com/scotus/402648/supreme-court-usaid-trump-aids-vaccine
- https://www.scotusblog.com/2025/03/supreme-court-denies-trump-request-to-block-2-billion-foreign-aid-payment/
- https://www.cnn.com/2025/03/05/politics/supreme-court-usaid-foreign-aid/index.html
- https://www.cbc.ca/news/world/us-scotus-usaid-ruling-1.7475093
- https://www.reuters.com/legal/us-supreme-court-upholds-judges-order-that-trump-promptly-pay-foreign-aid-groups-2025-03-05/
- https://www.washingtonpost.com/politics/2025/03/05/supreme-court-usaid-spending-freeze/
- https://www.bloomberg.com/news/videos/2025-03-05/supreme-court-rejects-trump-on-usaid-foreign-aid-freeze-video
- https://www.wusa9.com/article/news/politics/federal-fallout/supreme-court-rejects-trump-administration-request-wont-block-order-to-pay-2b-in-foreign-aid-usaid-john-roberts-judge-ali-alit-state-department/65-947a866d-f9fd-44cc-bafd-58622da1dfd8
- https://www.cbsnews.com/news/supreme-court-foreign-aid-usaid/
- https://www.aclu.org/press-releases/aclu-applauds-supreme-court-decision-upholding-congressional-control-of-federal-funding
- https://www.nytimes.com/2025/03/05/us/politics/foreign-aid-supreme-court-trump.html
- https://www.npr.org/2025/03/05/nx-s1-5309498/scotus-usaid-news
- https://tribune.com.pk/story/2532520/us-supreme-court-rejects-trumps-bid-to-freeze-billions-in-foreign-aid
- https://www.nytimes.com/2025/02/26/us/politics/trump-usaid-foreign-aid.html
- https://apnews.com/article/trump-usaid-foreign-aid-cuts-6292f48f8d4025bed0bf5c3e9d623c16
- https://www.ibanet.org/Dismantling-of-USAID-and-foreign-funding-freeze-jeopardises-rule-of-law-and-human-rights-globally
- https://www.nytimes.com/live/2025/03/05/us/trump-news
- https://www.youtube.com/watch?v=EvXs4IE23i4&vl=en
- https://www.opindia.com/2025/03/us-divided-sc-rejects-trump-administrations-plea-to-freeze-foreign-aid/
- https://www.propublica.org/article/trump-doge-rubio-usaid-musk-death-toll-malaria-polio-tuberculosis
- https://www.americanprogress.org/article/how-trumps-attack-on-usaid-undermines-american-leadership-and-security/
- https://www.bbc.com/news/articles/c5y071kxwn8o
- https://www.cnn.com/2025/02/03/politics/usaid-trump-congress-legal/index.html
- https://www.aljazeera.com/news/2025/2/26/trump-administration-appeals-deadline-to-release-us-foreign-aid-funding
