Court permits Trump to reduce $2 billion in international aid

Appeals Court Allows Trump to Withhold Foreign Aid

A federal appeals court ruled on Wednesday that President Trump is permitted to withhold $2 billion in foreign aid, reversing a prior order that had blocked the administration’s intent to cut funding through the U.S. Agency for International Development (USAID).

In a decision split 2-1, a judge from the D.C. Circuit Court of Appeals removed a temporary restraining order established by district judge Amir Ali, who was appointed by President Biden.

Ali had issued the restraining order in February after two nonprofits, the AIDS Vaccine Advocacy Coalition and the Journalism Development Network, filed a lawsuit. This followed Trump’s directive to pause foreign aid funding for 90 days right on his first day in office.

Judge Karen Henderson, appointed by former President George H.W. Bush, noted that the plaintiffs lacked standing to challenge the funding freeze initiated by the Trump administration.

“The district court erred in granting relief as there is no actionable claim regarding the grantees’ assertions,” Henderson wrote.

The nonprofits argued that the president overstepped his authority by effectively dismantling USAID and slashing spending that Congress had approved.

Henderson outlined that the Trump-appointed Judge Gregory Cassas joined her in the majority opinion, emphasizing that under the Water Storage Control Act of 1974, the Government Accountability Office has the authority to contest the president’s order withholding foreign aid.

In contrast, Biden’s appointee, Judge Florence Pan, criticized the funding freeze as “illegal,” expressing concerns that her dissent could lead to a situation resembling tyranny.

“The disruption of judicial balance and enforcement misconduct undermines a carefully constructed system that serves as a crucial guard against tyranny,” she stated.

A spokesman for the White House’s management and budget office welcomed the ruling, suggesting it would enhance the president’s ability to manage foreign aid responsibly.

Previously, the Trump administration sought to have Ali’s restraining order lifted by the Supreme Court, but the Court declined to intervene in a narrow 5-4 decision.

Earlier this year, the State Department had detailed plans to cut around $60 billion in foreign aid and terminate approximately 92% of grants administered by USAID.

A report resulting from a foreign aid audit ordered by Trump identified around 15,000 grants, with roughly 10,000 flagged for exclusion. The bulk of these originated from USAID.

USAID was among the initial federal agencies targeted for substantial cuts by Trump and the Department of Efficiency, once led by Elon Musk, due to accusations of widespread waste and abuse.