The US Supreme Court has denied a petition from the Trump administration to withhold nearly $2 billion (£1.6 billion) in payments owed to foreign aid organizations for services they have already rendered to the government.
On Wednesday, the Supreme Court affirmed a lower court’s decision that required the administration to disburse the funds to contractors and grant recipients from the US Agency for International Development and the State Department.
Since taking office, President Donald Trump has implemented significant cuts to various aid programs and has placed many USAID employees on leave or terminated them.
Aid organizations contend that these actions have put life-saving operations around the globe at risk.
Last month, District Judge Amir Ali instructed the State Department and USAID to settle bills owed to contractors for completed work by midnight on February 26.
As the deadline neared, the Trump administration requested emergency intervention from the Supreme Court, arguing that the timeframe was too short to process claims effectively.
Supreme Court Chief Justice John Roberts issued a temporary administrative stay before the entire court reviewed President Trump’s appeal.
On Wednesday, the court, in a narrow 5-4 ruling, opted not to suspend the lower court’s order mandating that the Trump administration disburse the payments.
The court indicated that Judge Ali’s deadline for immediate payment had elapsed, and it directed the district court to “clarify what obligations” the administration must meet to comply with the order.
Conservative Justices Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh dissented against the order.
“Does a single district-court judge who likely lacks jurisdiction have the unchecked power to compel the government of the United States to pay out (and probably lose forever) 2 billion taxpayer dollars?” Justice Alito stated in a dissent that included the three other conservative justices. “The answer to that question should be a resounding ‘No,’ but a majority of this Court seems to believe otherwise. I am astonished.”
The case originated when two aid organizations contested Trump’s 90-day suspension of foreign assistance. Judge Ali initially halted the cuts during his review, later ordering payments for work completed after the government failed to comply.
Legal proceedings are ongoing, with a district court hearing scheduled for Thursday regarding contractors’ requests for extended relief.
The Trump administration, driven by billionaire Elon Musk’s cost-reduction initiative, seeks to decrease the federal workforce.
The USAID budget reductions have already disrupted international aid efforts, pausing numerous programs across many countries.
The US is the world’s largest humanitarian aid provider, operating in over 60 countries, primarily through contractors.
