Amir Ali, a federal judge, ruled that the Trump administration must expedite payments to businesses and charitable organisations that are parties to a Lawsuit against the administration for its sudden suspension on funds for overseas assistance. The decision requires organisations impacted by the suspension of State Department and USAID programs to make a partial refund by March 10. After President Trump issued an executive order on January 20, the administration cancelled thousands of State Department programs and over 90% of USAID contracts, halting roughly $60 billion in aid.
Judge Ali called it a serious constitutional problem and questioned the administration’s assertion that presidents have extensive power to ignore congressional spending decisions. The Supreme Court had already ordered Ali to make clear the government’s responsibilities after rejecting the administration’s attempt to block USAID money. The administration acknowledged that processing was sluggish because of USAID staff shortages, even though it claimed to have resumed payments. In addition to back payments, the plaintiffs—which include groups like the Global Health Council—also want contract cancellations to be reversed.
Gov’t claim some foreign aid programs were not of American interests.
To meet the deadline on March 10, Judge Ali proposed recalling additional USAID employees from leave. The Trump administration’s recent decision to suspend USAID financing has generated a complex discussion about constitutional power, the programs’ worldwide reach, the administration’s justification, and the implications for particular aid projects and foreign relations. The division of authority between the legislative, executive, and judicial departments is outlined in the U.S. Constitution. The power of the purse, including the ability to distribute government funds, is granted to Congress under Article I. On the other hand, the President is tasked by Article II with carrying out federal laws, which includes managing expenditures that have been approved by Congress.
By establishing a system of checks and balances, this framework makes sure that no one branch goes over its authority. To undertake a thorough evaluation, President Trump issued Executive Order 14169 in January 2025, which suspended all U.S. foreign development assistance programs for 90 days. The administration used the claim that some foreign aid programs were out of step with American interests and values to defend this move. The President does not have the unilateral power to withhold monies that Congress has earmarked for specific objectives, according to the plaintiffs who challenged this action in court.
Ali stressed that the general suspension was not adequately justified.
The constitutional tenet that appropriations are mandatory and must be carried out as enacted, they argued, is violated by such an action. In this case, federal courts have stepped in. A temporary restraining order issued by U.S. District Judge Amir Ali requires the administration to restore funds for State Department and USAID foreign aid programs that were supported before the suspension. Judge Ali stressed that the general suspension was not adequately justified and that congressional appropriations are legally binding orders rather than just recommendations.
USAID, which was founded in 1961, has played a significant role in advancing humanitarian aid and global development. In order to promote economic growth, enhance health outcomes, and assist democratic institutions around the world, USAID’s programs cover a wide range of areas, including governance, agriculture, education, and health. The funding freeze has had a significant impact on many international initiatives. The President’s Emergency Plan for AIDS Relief (PEPFAR) and other HIV relief initiatives were suspended, putting treatment availability for some 20 million people—including 500,000 children—at risk.
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Furthermore, more than 30 clinical trials for illnesses like HIV, cholera, malaria, cervical cancer, and Tuberculosis were abruptly stopped, depriving participants of essential medical care and going against ethical research standards. The Trump administration justified the funding suspension by pointing to misalignments and inefficiencies in its international aid initiatives. The suspension, according to the administration, was required to carry out a comprehensive review and make sure that U.S. foreign aid is in line with national interests and values. Particular accusations included assertions that money was being misappropriated or spent for projects that weren’t in line with American priorities.