Trump's request for foreign aid reductions denied by an appellate court in the United States
The Trump administration's plan to withhold $4 billion from the US Agency for International Development (USAID) has been blocked by the US Court of Appeals for the District of Columbia Circuit. This decision comes after a lower court ruling that the administration must comply with appropriations laws and spend the funds on projects authorized by Congress.
The disputed funds were earmarked for foreign aid, United Nations peace-keeping operations, and democracy-promotion efforts overseas. The lower court, presided over by US District Judge Amir Ali, ruled that the administration cannot choose not to spend the money and must proceed with the spending unless Congress affirmatively acts to stop it.
The Trump administration had initially intended to spend $6.5 billion of the funds appropriated for foreign aid in 2024. However, it moved to withhold $4 billion from USAID. The administration's budget director, Russell Vought, argued that the president has the power to withhold funds for 45 days after requesting a rescission.
This move by the administration led to a lawsuit by aid groups that expected to compete for the funding this year. The groups argued that the withholding of funds was unlawful and would harm their operations and the people they serve.
In a significant development, the US Supreme Court had already intervened once in the case, requiring the Trump administration to pay foreign aid organizations for work they had already performed for the government.
The request to reverse the White House's $4 billion foreign aid cut was made by the United Nations. If Judge Ali's order is upheld, it would prevent Trump from bypassing Congress to cancel foreign aid funding.
The appeals court did not provide an explanation for its decision. Circuit Judge Justin Walker, a Trump appointee, dissented and would have paused the lower court decision. However, Judge Ali ruled quickly to provide higher courts time to weigh in before the funds reach their expiration dates.
The lower court's ruling that the administration should spend roughly $11 billion on foreign aid projects before September still stands. This decision is a significant win for aid groups and those who rely on foreign aid for essential services.
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