In a narrow 5-4 decision, the U.S. Supreme Court ruled on Wednesday that the Trump administration must comply with a lower court’s order and release nearly $2 billion in foreign aid funds to nonprofit organizations for work already completed on behalf of the government.
Chief Justice John Roberts and Justice Amy Coney Barrett joined the court’s liberal justices in the majority opinion. While the court did not provide an extensive explanation for the ruling, it instructed the lower court judge to “clarify what obligations the Government must fulfill to ensure compliance with the temporary restraining order, with due regard for the feasibility of any compliance timelines.”
A district court judge is still considering whether to issue a long-term preliminary injunction against the administration’s foreign aid freeze.
Sharp Dissent From Justice Alito
Justice Samuel Alito strongly opposed the ruling, calling the majority’s decision “stunning.”
“Does a single district court judge, likely acting beyond their jurisdiction, have unchecked power to force the United States Government to distribute—and likely lose forever—$2 billion in taxpayer dollars? The answer should be a resounding ‘No,’ yet a majority of this Court seems to disagree,” Alito wrote in his dissent.
The Trump administration did not immediately respond to the decision. The ruling also did not specify a deadline for compliance.
Legal Battle Over Aid Payments
The dispute began when the administration attempted to freeze the payments through an executive order. However, U.S. District Court Judge Amir Ali issued a temporary restraining order three weeks ago, requiring the payments to continue.
Last week, Ali—an appointee of President Biden—ruled that the administration had violated the order by refusing to release the funds and set a deadline of 11:59 p.m. on February 26 for the payments to be made.
Despite the restraining order, Department of Justice attorneys admitted in court that the administration continued to withhold the funds. They argued that they should not be forced to disburse the money, citing “sovereign immunity.”
During a contentious exchange with Judge Ali, a DOJ lawyer struggled to provide clear answers regarding the administration’s compliance with the restraining order. Before the deadline, Chief Justice Roberts issued a temporary stay while the Supreme Court reviewed the case.
Foreign Aid Groups in Financial Crisis
The Trump administration’s freeze on foreign aid has pushed several nonprofit organizations to the brink of bankruptcy. Many have been left scrambling for solutions after the sudden loss of funding.
In a February 13 meeting with representatives from aid organizations, Pete Marocco, the Trump official overseeing the dismantling of the U.S. Agency for International Development (USAID), defended the administration’s approach.
According to leaked audio obtained by ABC News, Marocco described the process as a “total zero-based review,” claiming that certain aspects of foreign aid needed “radical change.”
“As far as payments go, one of the challenges has been that, despite the president’s executive order and the secretary’s guidance, there were individuals within agencies attempting to push through hundreds of unauthorized payments,” Marocco said.
He claimed that the administration “took control” of the situation to prevent what he called illegal disbursements. While Marocco suggested that payments for organizations with existing contracts would resume the following week, they remained frozen.
With the Supreme Court’s ruling, the Trump administration must now determine how and when to comply with the order—though the legal battle over foreign aid appears far from over.