SCOTUS orders Trump administration to release $2 billion in frozen foreign aid

Divided ruling forces government to pay nonprofit aid groups

In a 5-4 ruling, a sharply divided US Supreme Court on Wednesday ordered the Trump administration to comply with a district court ruling and release nearly $2 billion in foreign assistance funds to nonprofit aid organizations for work already completed.

Chief Justice John Roberts and Justice Amy Coney Barrett sided with the liberal justices in the ruling, while Justice Samuel Alito, in his dissent, strongly criticized the decision.

“Does a single district-court judge who likely lacks jurisdiction have the unchecked power to compel the government of the United States to pay out (and probably lose forever) $2 billion taxpayer dollars? The answer to that question should be an emphatic ‘No,’ but a majority of this Court apparently thinks otherwise,” Alito wrote.

The court’s majority did not specify a deadline for compliance but directed the district court judge to clarify the government’s obligations, including a feasible timeline for payment.

Background: Trump administration’s foreign aid freeze

The Trump administration attempted to freeze the payments via an executive order, but US District Court Judge Amir Ali issued a temporary restraining order three weeks ago, ordering the funds to be disbursed.

Despite this, the administration failed to comply. Last week, Judge Ali ruled that the administration had violated the order and set a deadline of 11:59 p.m. on February 26 for the payments to be made.

The Department of Justice (DOJ) acknowledged in court that the administration deliberately ignored the restraining order. However, government lawyers argued that they should not be required to release the funds, citing sovereign immunity.

During a heated exchange in court, a DOJ attorney struggled to provide answers regarding the administration’s compliance with the ruling.

Before the deadline, Chief Justice Roberts issued a temporary stay, allowing the Supreme Court to hear the case before enforcing the lower court’s decision.

Impact on foreign aid groups

Foreign aid organizations that depend on US government funding have been pushed to the brink of bankruptcy due to the aid freeze. Many have been left searching for answers as they await long-overdue payments.

During a February 13 meeting with aid group representatives, Pete Marocco, the Trump administration official overseeing the dismantling of the US Agency for International Development (USAID), defended the administration’s decision to halt payments.

Marocco described the review process as a “total zero-based review“, arguing that radical changes were needed in some areas of foreign aid. He further claimed that there were “nefarious actors” within government agencies who attempted to push through “hundreds of illegal payments” despite the president’s executive order.

“We were able to seize control of that, stop them, take control of some of those people, and make sure that that money was not getting out the door,” Marocco said in audio obtained by ABC News.

Despite suggesting that payments for organizations with existing contracts would resume, they remained frozen.

Future of foreign aid uncertain

The Supreme Court’s ruling now forces the Trump administration to comply with the district court order and release the $2 billion in foreign aid. However, the timeline for these payments remains unclear as the case continues in the lower court.

Meanwhile, nonprofit aid groups remain in limbo, awaiting the lifeline funding needed to continue their operations.

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