WASHINGTON – A federal judge on Thursday ordered the Trump administration to speed up payments of some of its nearly $2 billion in debt to U.S. International Development Agency and State Department partners, giving a Monday deadline to repay nonprofits and businesses in a lawsuit over a rapid shutdown of foreign aid funds.
US District Judge Amir Ali described partial payment as a “specific” first step that the administration wanted to see. This is fighting multiple lawsuits attempting to roll back the dismantling of USAID and the six-week freeze of USAID funds.
Ali's questions at the four-hour hearing on Thursday hinted at skepticism over the Trump administration's argument that the president has broad powers to override Congress's decisions on spending on foreign policy.
“To say expropriation is an option would be a proposal that will shake the earth, to shake the countryside,” Ali said.
“The question I have for you is where do you get this from the constitutional documents,” he asked Indreine Sur, a government lawyer.
Thursday's order comes in a continuing case this month when more decisions come about the end of the administration of more than 90% of USAID contracts worldwide.
Ali's ruling came a day after the split Supreme Court rejected a Trump administration's bid to freeze funds flowing through the USAID.
The High Court directed Ali to clarify what the government must do to comply with the previous order.
Funding freeze stems from an executive order signed by President Donald Trump on January 20th.
The administration appealed after Ali issued a temporary restraining order and set a deadline for releasing payments for work that had already been made.
The administration said it replaced the blanket spending freeze with a separate decision, which has resulted in 5,800 USAID contracts (more than 90% of the project's contracts) being cancelled, with 4,100 State Departments giving a total of nearly $60 billion in aid.
“Fundraising is frozen. It's not continuing. Sur told the judge on Thursday.
With thousands of formletter contract terminations occurring earlier this month, nonprofits and businesses are unable to review their actual individual contracts, and cancellations of contracts have made most of the permanent closures from the financing freeze permanent.
The AIDS Vaccine Advocacy Coalition, Global Health Council and other plaintiffs in the suit are seeking payments of nearly $2 billion in shares that they and other USAID partners have already been unpaid as of the January 20 funding freeze.
The organization's lawyer told the court on Thursday that he would like to see all contract terminations reversed and that future terminations will follow regulations.
The Trump administration said it has recently resumed payments on its USAID debt after a fundraising freeze.
However, it informed the court that payments were being processed late as they separated most USAID workers from their jobs through forced foliage and firing as part of the agency's closure.
Ali said Thursday that USAID had routinely made thousands of payments before the agency was closed, and that it recently called 100 staff members to process payments on vacation.
The administration could take over idol-type workers from holidays to set a Monday deadline, he said.
