A divided US Supreme Court on Wednesday reinstated a lower court’s order directing the Donald Trump administration to release nearly $2 billion in frozen foreign aid. However, it remains unclear how soon the funds will be disbursed.
In a 5-4 ruling, the court rejected an emergency appeal from the Republican administration but also instructed US District Judge Amir Ali to clarify his initial directive for a swift release of the funds. The decision marks a setback for President Donald Trump, but nonprofit groups and businesses that sued for the money they are owed continue to await payment.
Due to the funding freeze, organisations in the US and abroad have reduced services and laid off thousands of workers. HIAS, one of the nonprofits involved in the lawsuit, welcomed the ruling but lamented the damage already done. “The irreparable damage that the Trump administration has already inflicted on our staff, the people we serve, and the reputation of the United States as a leader and a reliable partner,” the Maryland-based refugee assistance organisation stated.
Justice Samuel Alito led the four dissenting conservative justices, arguing that Ali overstepped his authority in ordering the payments. Alito criticised the ruling, calling it “an act of judicial hubris” that places a “$2 billion penalty on American taxpayers.”
Ali’s restraining order, which halted the spending freeze, remains in effect as he prepares for a Thursday hearing on potentially extending the measure. The court’s majority noted that the administration had not contested Ali’s original order—only the deadline, which had already lapsed. The justices asked Ali to specify what steps the government must take to comply, considering the feasibility of the timeline.
Chief Justice John Roberts and Justice Amy Coney Barrett, both conservatives, joined the three liberal justices to form the majority. The dissenting justices included Clarence Thomas, Neil Gorsuch, Brett Kavanaugh, and Alito.
The Trump administration has justified its funding freeze by arguing that conditions have changed. Instead of a blanket halt, it has implemented case-by-case reviews, leading to the cancellation of 5,800 contracts from the US Agency for International Development (USAID) and 4,100 State Department grants, cutting nearly $60 billion in aid.
Trump initially ordered the freeze through an executive directive targeting what he described as wasteful foreign programs that did not align with his administration’s policy goals. However, the lawsuit against the government claimed that halting aid violated federal law and disrupted critical life-saving programs worldwide.
Ali first ordered a temporary restoration of the funding on February 13. Nearly two weeks later, he found that the government had not taken any steps to comply and imposed a deadline for releasing payments on work already completed. The administration appealed, calling Ali’s order “incredibly intrusive and profoundly erroneous.”
On Wednesday, during a closed-door House Foreign Affairs Committee briefing, Pete Marocco, the Trump political appointee overseeing the USAID cuts, expressed “concerns” about the Supreme Court ruling. Committee Chairman Brian Mast, a Florida Republican, later told reporters that when asked if he would comply with the ruling, Marocco avoided giving a direct response.
