Federal Court Ruling on USAID Payments

A federal appeals court made a decision on Wednesday regarding foreign aid payments that were previously suspended. These payments, linked to the US Agency for International Development (USAID), could potentially be cut down to about $2 billion. This follows President Donald Trump’s earlier attempts to reduce USAID operations.

The ruling from the US DC Circuit’s appeals court reversed a prior decision that mandated the Trump administration to resume these nearly $2 billion payments, which had been approved by Congress. The majority opinion, written by Judge Karen L. Henderson, appointed by Bush, stated that the plaintiffs did not have the legal standing to challenge the Trump administration’s choice to withhold the funds.

Judge Henderson was supported by Judge Greg Cassas, another Trump appointee. She noted that the plaintiffs couldn’t claim an independent constitutional violation if the issues they raised were based on statutory claims. Furthermore, she indicated that grantees lacked a cause for action under the Administrative Procedure Act (APA) due to exclusions outlined in the Water Storage Management Act (ICA).

This judgment is viewed as a win for Trump, who initiated moves to overhaul USAID and other foreign aid programs shortly after beginning his second term. The ruling has incited backlash from foreign aid organizations and other assistance recipients, who assert that the abrupt cessation of these payments poses a risk of “immediate and irreparable damage.”

This is a developing story, and updates will follow.