Supreme Court’s 5-4 Ruling Overturns Trump Administration’s Freeze on Foreign Aid: A Divided Decision with Far-Reaching Implications
On Wednesday, a split Supreme Court denied the Trump administration’s appeal to maintain the freeze on billions of dollars in foreign aid that Congress had approved.
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Nevertheless, the court did not specify when the funds must be released, permitting the White House to continue contesting the matter in lower courts.
The decision was rendered with a 5-4 vote.
Although the order was unsigned, four conservative justices dissented: Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh. This left five justices in the majority, including Chief Justice John Roberts, Amy Coney Barrett, Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson.
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The majority emphasized that since a court-imposed deadline to allocate the funds had already lapsed last week, the lower courts should “clarify what obligations the government must fulfill to ensure compliance with the temporary restraining order.”
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In a strongly articulated dissent, Alito expressed that he was “stunned” by the court’s ruling allowing the lower-court judge to instruct the administration to unfreeze the foreign aid in question.
Alito remarked: “A federal court possesses numerous tools to address a party’s alleged nonfeasance. Self-aggrandizement of its jurisdiction is not one of them.”
Despite the ruling being 5-4, it was described as “extremely modest” by Steve Vladeck, a CNN Supreme Court analyst and professor at Georgetown University Law Center.
“The unsigned order does not actually mandate the Trump administration to promptly disburse up to $2 billion in foreign aid; it simply paves the way for the district court to enforce those payments, presumably if it provides more specific details regarding the contracts that need to be honored,” Vladeck stated. “The fact that four justices still dissented – vigorously – from such a ruling indicates that the Court is likely to remain divided, potentially along these same lines, in many of the significant Trump-related cases that are currently pending.”
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The appeal was expedited to the high court within a matter of days – remarkably swift by the standards of the federal judiciary. This marks the second case to come before the justices concerning Trump’s efforts to centralize authority within the executive branch and significantly alter the government following his ascension to power in January.
At the heart of the case lies billions in foreign aid from the State Department and the US Agency for International Development, which Trump suspended in January as he aimed to curtail spending and align those agencies with his agenda. Several nonprofit organizations that depend on this funding for global health and various programs have filed a lawsuit, claiming that the administration’s actions overstepped Congress’s authority to regulate government spending and breached a federal statute governing agency decision-making.
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In a statement released on Friday, the organizations characterized the administration’s actions as having a “devastating” effect.
They informed the court that the funding “promotes US interests internationally and enhances – and, in numerous instances, literally saves – the lives of millions worldwide.”
“By doing so, it helps to mitigate issues such as disease and instability abroad before they reach our borders,” the organizations asserted.
On February 13, US District Judge Amir Ali mandated that a significant portion of the funds continue to be disbursed on a temporary basis while he evaluated the case. Shortly thereafter, the plaintiffs contended that the administration was ignoring that order and persisting in obstructing the spending, prompting Ali to instruct the Trump administration to allocate the disputed funds by midnight on Wednesday.
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Ali was appointed to the bench by President Joe Biden.
The Trump administration hastily filed an emergency appeal to the Supreme Court just hours before the deadline, requesting the court to at least delay the order for a few days. The administration is undertaking “substantial efforts” to assess payment requests and disburse the funds, the government argued, but it was unable to activate the funding quickly enough to comply with Ali’s timeline.
The organizations that initiated the lawsuit have expressed skepticism regarding that explanation.
“The government has not undertaken ‘any significant measures’ to achieve compliance,” the organizations stated in a Supreme Court filing earlier on Friday.
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Roberts, acting independently, granted the administration a temporary reprieve on Wednesday by issuing what is referred to as an “administrative stay,” which paused the case to allow both parties to present written arguments. The chief justice is responsible for managing emergency cases that arise from the federal appeals court in Washington, DC.
Among the organizations contesting the freeze are the AIDS Vaccine Advocacy Coalition, a New York-based entity focused on accelerating HIV prevention, and the Global Health Council, located in Washington, DC, which represents various groups that implement health programs.
The Trump administration disclosed in court documents related to the case that it is seeking to terminate over 90% of the USAID foreign aid awards.
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“In total, nearly 5,800 USAID awards were terminated, while more than 500 USAID awards were preserved,” a document from the administration indicated.
“The total ceiling value of the preserved awards is approximately $57 billion,” the document stated.
In addition to the terminations of USAID awards, “approximately 4,100 State awards were terminated, and around 2,700 State awards were preserved,” the government informed a lower court, referring to the State Department.
Aid programs globally have come to a standstill due to the extensive funding freeze and the review of billions of dollars in assistance. This situation also coincides with the Trump administration’s decision to either place the majority of USAID’s workforce on leave or to terminate their employment.
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On Capitol Hill, Democrats asserted that the ruling indicates Trump’s authority to halt spending is not without limits.
“The funds had already been allocated, actions were already underway, and I believe the Supreme Court made the correct decision. Now, the administration must release those funds and permit the contractors to proceed with their work,” stated Rep. Gregory Meeks of New York, who serves as the leading Democrat on the House Foreign Affairs Committee.
Rep. Pramila Jayapal described it as “a very significant ruling” from “a court influenced by Trump.”
“I believe it emphasizes that Congress possesses the authority to allocate funds, and that individuals depend on that authority for these programs. When the work is completed, payment should be made as it has been authorized,” the Washington state Democrat informed CNN.
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When asked if she is confident that the payments will resume, Jayapal expressed uncertainty about anything, “but I hope that the Trump administration will heed the Supreme Court’s decision.”