A federal judge on Thursday ordered the Trump administration to pay foreign aid by Monday evening to US Organization for International Development (USAID) contractors and nonprofits who challenged the freeze.
U.S. District Judge Amir Ali, former President Biden appointee, said the government must release payments by 6pm on Monday and will weigh the timeline for releasing the remaining funds, taking into consideration whether the lawsuit will grant impending relief to the plaintiffs.
The new schedule comes after the Trump administration has tried to fend off Ali's orders for weeks to resume existing foreign aid contracts. The administration is heavily asking for the dismantling of USAID, including laying off employees and freeing up payments to contractors.
The administration worked hard to the Supreme Court. It refused to lift Ali's enforcement efforts in a 5-4 emergency decision on Wednesday, sending the case back to set up a new timeline for the release of nearly $2 billion.
“When the Supreme Court speaks, I hope to take that action as soon as possible and make it clear,” Ali said.
According to the judge, approximately $70 million of the funds owed to the plaintiff had already been released overnight following the High Court's decision.
The USAID contractor who sued the Trump administration claimed he was waiting for hundreds of millions of dollars on unpaid bills from the government. Two other nonprofits also sued, claiming that Trump's executive order freezing foreign aid violated a separation of power and caused irreparable harm to businesses that rely heavily on USAID funds.
Plaintiff's attorney, Stephen Worth, said at the hearing Thursday afternoon.
They alleged that the State Department could not practicably implement a case-by-case review of all contracts and suggested that instead it had made an illegal blanket decision to halt all aid.
The Justice Department says in its court application that “individualized review process” has been completed due to grant and federal aid award obligations, despite the ongoing review of some contracts.
Ali questioned how such reviews would occur quickly, and the government responded that the plaintiff's request for a temporary restraining order would result in a change in resources to get the job done more quickly.
The plaintiffs “have problems with their own litigation options,” said Indraneel Sur, a lawyer for the Department of Justice.
Earlier on Thursday, another federal judge refused to spare USAID personal services contractors immediately from mass firing, as the harm they face is “directly traceable” for the government to change the contract. The judge suggested that relief should be sought through various channels.
Lawyers for the coalition of USAID contractors and nonprofits said Thursday afternoon there was a “more diverse award” in their case.
Ali received a motion for a provisional injunction under advice, but showed that his decision had not been decided in advance.
“I wouldn't argue unless I'm actually working on some issues,” the judge said.
Zach Schonfeld contributed.
