“Judge Slams Trump Admin: Orders USAID & State Dept. to Pay Withheld Billions!”

Judge Orders USAID and State Department to Release Withheld Foreign Aid Funds:

A federal judge has ruled that the U.S. State Department and the U.S. Agency for International Development (USAID) must release foreign aid funds that were improperly withheld. The order mandates that contractors and grant recipients be compensated for work completed before February 13, ensuring that congressionally approved funding reaches its intended recipients.

Judge Amir H. Ali of the Federal District Court for the District of Columbia issued the ruling, barring the Trump administration from blocking the distribution of these funds. This decision is part of an ongoing legal dispute regarding the administration’s attempts to cut back on foreign aid spending.

While the ruling requires payments for previously completed work, it does not reinstate canceled contracts or guarantee funding for future projects. However, Judge Ali emphasized that the administration had exceeded its authority by withholding funds that had already been allocated by Congress.

Legal Challenges Over Executive Authority:

“The executive has unilaterally determined that funds allocated by Congress for foreign aid will not be spent,” Judge Ali wrote. “This is not only an assertion of authority over spending decisions but also an encroachment on Congress’s exclusive power to determine budget allocations.”

His decision prevents the State Department and USAID from implementing a January 24 directive that aimed to restructure and reduce U.S. foreign aid. As a result, the agencies must now release hundreds of millions of dollars owed to organizations for completed work.

When President Trump took office, he immediately froze a significant portion of foreign aid spending. While the judge’s ruling lifts restrictions on past payments, it does not override the administration’s decision to cancel numerous contracts through an expedited review process.

Massive Aid Cuts and Their Impact:

Earlier the same day, Secretary of State Marco Rubio stated that a review of USAID’s contracts—conducted with assistance from Elon Musk’s team—had resulted in an 83% reduction in the agency’s agreements. He also noted that the remaining 1,000 contracts would now be managed by the State Department.

Judge Ali highlighted that aid organizations involved in the lawsuit had demonstrated significant harm due to the funding freeze, which disrupted critical humanitarian operations. The court gave the agencies until Monday at 6 p.m. to process payments for completed work. Additionally, the government must submit a report outlining how it will compensate other organizations affected by the funding halt.

Despite earlier court rulings ordering the release of some payments, many organizations—including those working on essential health initiatives—have yet to receive their expected funds. Government attorneys argued that the delays were not intentional but were the result of administrative complications following mass contract cancellations and staffing reductions.

Supreme Court’s Involvement:

Last week, the Supreme Court declined to suspend Judge Ali’s ruling, which requires the government to disburse nearly $2 billion in aid payments. The justices requested further clarification on the government’s responsibilities, as the original payment deadline had already passed.

In a close 5-4 decision, the Supreme Court upheld the lower court’s directive. However, a dissenting opinion by Justice Samuel A. Alito Jr., joined by Justices Clarence Thomas, Neil M. Gorsuch, and Brett M. Kavanaugh, suggested that the Trump administration could still have legal grounds to withhold the funds due to federal sovereign immunity, which limits lawsuits seeking to compel government payments.

“The government must apparently release the $2 billion immediately—not because the law explicitly requires it, but solely because a district judge ordered it,” Justice Alito wrote. “It is the responsibility of the nation’s highest court to ensure judicial power is exercised appropriately. Today, the court has failed to fulfill that duty.”

With USAID having canceled most of its contracts and placed the majority of its workforce on leave, the future of U.S. foreign aid remains uncertain. However, this ruling reinforces congressional authority over federal spending and challenges efforts to bypass legislative approval in budgetary decisions.