Supreme Court rejects Trump’s bid to halt $2 billion to USAID 

The decision, reached by a narrow 5-4 vote, came after the Justice Department filed an emergency application to block orders from U.S. District Judge Amir Ali. Ali had issued multiple rulings demanding that the government release funds frozen by President Donald Trump’s executive order, which sought to reevaluate and curb foreign aid spending.

The Supreme Court’s unsigned order noted that Judge Ali’s original deadline for payment had lapsed, and the case remains active in district court, with further rulings anticipated. A hearing is slated for Thursday, March 6, where Ali is expected to clarify the government’s obligations under a temporary restraining order issued on February 13. The court urged Ali to assess the practicality of compliance deadlines, signaling ongoing judicial oversight. The Trump administration had argued it couldn’t meet Ali’s earlier directive to disburse the $2 billion by the previous Wednesday, citing logistical challenges.

Four conservative justices—Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh—dissented, with Alito expressing shock at the decision. In his dissent, he argued that Ali lacked the authority to “compel the government to pay out … 2 billion taxpayer dollars,” calling it an overreach of judicial power. The frozen funds support critical projects, including irrigation systems in Ukraine, water upgrades in Lagos, Nigeria, medical equipment supplies in Vietnam and Nepal, and malaria prevention efforts in Kenya, Uganda, Ghana, and Ethiopia.

The administration’s broader push to slash USAID’s budget, part of a review concluding cuts to programs worth up to $60 billion, has sparked legal battles. Nonprofits, businesses, and unions representing USAID workers have sued, alleging the government owes them for completed work. They claim Trump’s abrupt moves, backed by ally Elon Musk to shrink federal agencies, violated the Administrative Procedure Act. Judge Ali’s initial restraining order challenged the executive order’s blanket termination of funding, though case-by-case reviews remain permissible.

Acting Solicitor General Sarah Harris defended the administration, telling the Supreme Court that while it intends to honor legitimate claims, Ali’s specific payment demands exceeded his jurisdiction. Contractors, however, stressed the urgency, noting layoffs—such as 110 workers let go by one group—and legal risks from unpaid severance. Chief Justice John Roberts had temporarily stayed Ali’s order last week, giving the court time to deliberate.

The dispute underscores tensions between Trump’s aggressive downsizing agenda and contractual obligations, leaving USAID staff and supporters reeling as they vacated their Washington, D.C., offices last Thursday. As the case progresses, its outcome could reshape foreign aid policy under intense judicial scrutiny.