The Trump administration is locked in a legal battle over $2 billion in USAID funds, arguing that a lower court’s demand to release the money immediately is unrealistic and could lead to major financial mismanagement. The case has now reached the Supreme Court, which has temporarily put the payout on hold while it reviews the appeal.
Why Is This Happening?
Earlier this year, President Donald Trump put a pause on certain foreign aid disbursements, claiming that the funds needed to be re-evaluated to ensure they aligned with U.S. interests. However, this move stalled payments to multiple humanitarian programs, leading aid organizations to file lawsuits.
In response, U.S. District Judge Amir Ali ruled that the federal government must release the $2 billion immediately, setting a February 26 deadline. But the Department of Justice (DOJ) pushed back, saying that rushing such a large payout is not as simple as pressing a button and could create logistical problems.
What the Administration Is Saying
Solicitor General Sarah Harris, representing the Trump administration, has argued that:
- The government needs time to properly process and verify payments.
- The district court lacks the authority to force the executive branch to release funds.
- The ruling could set a dangerous precedent, limiting how the government manages its budget.
Supreme Court Steps In
With the dispute escalating, Chief Justice John Roberts has temporarily paused the lower court’s order, giving the Supreme Court time to weigh in. The Court has asked for responses from the plaintiffs by March 7, 2025.
What This Means for Foreign Aid
For aid organizations, the frozen funds mean uncertainty and disruption for projects around the world. Many nonprofits argue that these payments were meant to reimburse expenses already incurred for humanitarian work, and delays could put lives at risk.
Meanwhile, the White House insists that it’s not against funding aid programs—just that it wants to ensure accountability before releasing such a large sum of taxpayer money.
What Happens Next?
The Supreme Court will now review the case and decide whether the government must follow the lower court’s ruling or if it has the power to delay the payments further. Their final decision could have a lasting impact on how foreign aid is managed under future administrations.