Appeals Court Allows Trump Administration to Suspend Foreign Aid Funding
A decision by a split panel of judges from the U.S. Court of Appeals for the District of Columbia Circuit has enabled the Trump administration to halt or cut off billions of dollars allocated by Congress for foreign aid. On Wednesday, the court ruled in favor of the administration, with two out of three judges determining that the plaintiffs did not meet the criteria necessary for a preliminary injunction.
At the start of his second term, President Donald Trump, a Republican, issued an executive order instructing the State Department and the U.S. Agency for International Development (USAID) to freeze foreign aid spending. This prompted several grant recipients to file a lawsuit challenging the order. However, U.S. District Judge Amir Ali initially commanded the release of the full foreign assistance funds appropriated by Congress for the 2024 fiscal year.
The appeals court’s majority decision partially nullified Judge Ali’s directive. Judges Karen LeCraft Henderson and Gregory Katsas posited that the plaintiffs lacked a legitimate legal foundation for their claims to be heard. The ruling did not address whether the government had unconstitutionally breached Congress’ powers over spending.
Judge Henderson remarked, “The parties also dispute the scope of the district court’s remedy but we need not resolve it … because the grantees have failed to satisfy the requirements for a preliminary injunction in any event.”
In her dissent, Judge Florence Pan argued that the Supreme Court has decisively stated that the president cannot disregard laws based on policy preferences. She expressed concern that the majority’s decision effectively allows the executive branch to avoid judicial scrutiny for unconstitutional actions. “Yet that is what the majority enables today,” Pan asserted. “The majority opinion thus misconstrues the separation-of-powers claim brought by the grantees, misapplies precedent, and allows Executive Branch officials to evade judicial review of constitutionally impermissible actions.”
The contested funds include approximately $4 billion earmarked for USAID’s global health initiatives and over $6 billion designated for HIV and AIDS programs. President Trump has criticized these foreign aid expenditures as being misaligned with his foreign policy objectives.
Judge Henderson and Judge Katsas, who supported the ruling, were appointed by Republican Presidents George H.W. Bush and Donald Trump, respectively. Judge Pan, who opposed the decision, was appointed by Democratic President Joe Biden.
