WASHINGTON — A federal judge has instructed President Donald Trump’s administration to temporarily lift a freeze on funding that has halted U.S. humanitarian assistance and development activities globally, and has imposed a five-day deadline for the administration to demonstrate compliance.
The judge’s decision, delivered late Thursday, highlighted the financial turmoil caused by the abrupt cessation of payments for suppliers and nonprofits that handle a significant portion of U.S. aid abroad.
This ruling is the first to contest the Republican administration’s funding freeze, occurring amidst a rise in lawsuits from groups representing government employees, aid organizations, and contractors, seeking judicial intervention to reverse the administration’s rapid dismantling of the U.S. Agency for International Development (USAID) and foreign assistance.
Trump and his ally Elon Musk claim that the six-decade-old aid agency and much of the overall foreign assistance contradict the Republican president’s policy objectives.
Judge Amir H. Ali stated in his ruling that administration officials did not provide any rationale for the sweeping suspension of all congressionally approved foreign aid, which led to a shockwave affecting contracts with thousands of nonprofits, businesses, and others, describing it as an irrational step before program reviews.
Contractors, farmers, and suppliers both in the U.S. and globally argue that the funding freeze has left them unpaid for hundreds of millions of dollars of completed work, compelled layoffs, and has dangerously pushed many towards financial ruin.
Many farmers and other suppliers and contractors report that large amounts of undelivered food aid are deteriorating in ports, with other unfulfilled assistance at risk of theft.
The judge mandated the administration to inform every organization with an existing foreign aid contract of his temporary suspension. He set a Tuesday deadline for the administration to demonstrate that notifications were sent and that it was otherwise adhering to the order.
The Trump administration had no immediate public response.
The temporary order was issued in a case filed by two organizations—the AIDS Vaccine Advocacy Coalition and the Global Health Council—representing health organizations receiving U.S. funds for their work abroad.
In his order, the judge remarked that the Trump administration claimed it needed to halt funding for myriad USAID programs worldwide to conduct a thorough review to determine which programs should be eliminated.
However, the administration’s attorneys failed to demonstrate a “rational justification for disregarding … the numerous small and large businesses that would be compelled to shut down operations or completely close their businesses,” the judge added.
The ruling further prohibits Secretary of State Marco Rubio and other Trump officials from enforcing stop-work orders that have been sent to companies and organizations engaged in foreign aid initiatives.
The judge also dismissed the Trump administration’s claim that it was mitigating the effects of the funding freeze by issuing waivers to allow some funding to continue flowing to certain aid partners, citing testimony indicating that no such waiver system was in place and that USAID’s online payment system was nonfunctional.
In another ruling from a separate lawsuit on Thursday, a judge indicated that his temporary injunction against a Trump administration order aimed at significantly reducing USAID staff worldwide would remain in effect for at least another week.
U.S. District Judge Carl Nichols rigorously interrogated the government regarding how it planned to ensure the safety of aid staff abroad while the administration was dismantling USAID. When a Justice Department attorney could not provide detailed safety plans, the judge requested the submission of court documents post-hearing.
USAID staffers who were recently stationed in Congo submitted affidavits in the lawsuit reporting that the aid agency had virtually abandoned them during a surge of looting and political violence in Congo’s capital last month, forcing them to evacuate with their families.
