The US Supreme Court on Wednesday temporarily halted a lower court’s order requiring the Trump administration to release billions of dollars in foreign aid by midnight. Chief Justice John Roberts stated that the order from US District Judge Amir H Ali will remain on hold while the high court reviews the case.
Judge Ali had ruled in favour of nonprofit groups and businesses that challenged the administration’s freeze on foreign aid, ordering the government to lift the block. However, an appellate panel denied the administration’s request for intervention, prompting an appeal to the Supreme Court.
The Trump administration had frozen the funds following an executive order from President Donald Trump, who cited concerns over “wasteful programs” that he claimed did not align with his foreign policy objectives.
Sweeping cuts to foreign aid detailed
Earlier on Wednesday, the administration outlined plans to slash more than 90% of the US Agency for International Development’s (USAID) foreign aid contracts, reducing overall assistance by $60 billion. The move significantly curtails US development and humanitarian programs globally, marking one of the most aggressive reductions in federal spending.
An internal memo obtained by The Associated Press and filings in federal court revealed the administration’s plans. The memo stated that the government was “clearing significant waste stemming from decades of institutional drift” and hinted at further changes in the delivery of foreign assistance through USAID and the State Department.
President Trump, alongside ally Elon Musk, has led the charge to shrink government spending, particularly targeting USAID programs. Both have criticised the agency’s initiatives as promoting a “liberal agenda” and being financially inefficient.
On January 20, Trump ordered a sweeping 90-day review of all foreign assistance programs, leading to an abrupt suspension of aid. The freeze disrupted thousands of US -funded projects, with the administration and Musk’s Department of Government Efficiency enforcing staff reductions at USAID through forced leave and firings.
Lawsuits and congressional pushback
In court filings, nonprofit contractors working with USAID described the administration’s rapid contract terminations as an attempt to sidestep compliance with the federal court order. One email from a USAID official, cited in the filings, read, “‘There are MANY more terminations coming, so please gear up!’”
Senator Chris Murphy (D-Conn.), a member of the Senate Foreign Relations Committee, condemned the administration’s actions, stating, “The administration is brazenly attempting to blow through Congress and the courts by announcing the completion of their sham ‘review’ of foreign aid and the immediate termination of thousands of aid programs all over the world.”
According to the State Department, Secretary of State Marco Rubio has reviewed and approved the terminations. The administration’s cuts include 5,800 of USAID’s 6,200 multiyear contract awards, reducing funding by $54 billion, as well as the elimination of 4,100 of the State Department’s 9,100 grants, cutting an additional $4.4 billion.
The State Department memo, first reported by the Washington Free Beacon, acknowledged that the foreign aid terminations were initiated in response to Judge Ali’s order, which set a deadline for lifting the funding freeze by the end of the day Wednesday.
Supreme Court intervention and limited payments
As the deadline approached, the Trump administration sought emergency intervention from the Supreme Court. Meanwhile, after repeated warnings from the federal judge, administration officials confirmed they had begun processing a small portion of overdue payments, amounting to just a few million dollars out of the billions owed to US and international organizations and businesses.
The Supreme Court is expected to review the case further before issuing a final ruling.
