The US Supreme Court building is seen in Washington, US.
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THE UNITED States Supreme Court has ruled against President Donald Trump's administration in a closely contested decision regarding payments to foreign aid organisations. The ruling, handed down in a 5-4 decision on Wednesday, requires the administration to release funds to aid groups for work already completed under government contracts.
The decision upholds an earlier order by US District Judge Amir Ali, based in Washington, which directed the administration to release nearly $2 billion in withheld funding allocated through the US Agency for International Development (USAID) and the State Department. The ruling represents a setback for Trump’s broader effort to halt American-backed humanitarian projects globally.
The court’s conservative justices were split, with Chief Justice John Roberts siding with the majority. Justices Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh dissented. The ruling did not include a detailed explanation, but it instructed Judge Ali to clarify the government's obligations in complying with the temporary restraining order.
Ali had initially ordered the administration to distribute the funds by February 26. However, Chief Justice Roberts issued a temporary stay just before the deadline to allow the court more time to deliberate on the administration’s request to block the ruling. With that stay now lifted, the government must determine a timeline for disbursing the funds. Ali has scheduled a hearing on Thursday to address a request for a preliminary injunction.
Foreign aid organisations brought the lawsuit against the administration, arguing that the funding freeze violated federal law and the US Constitution. They contended that the administration overstepped its authority by halting funding already approved by Congress, effectively undermining an independent federal agency’s operations.
Legal representatives for the plaintiffs warned in a February 28 filing that the funding pause had already caused "extraordinary and irreversible harm," impacting both aid workers and the communities they serve. Many of these organisations provide essential services such as medical aid, food assistance, and development projects aimed at stabilising conflict-prone regions.
The plaintiffs in the case include the Aida Vaccine Advocacy Coalition, Journalism Development Network, international development firm DAI Global, and the refugee assistance organisation HIAS.
Trump, who has promoted an "America First" policy, ordered a 90-day suspension of all foreign aid spending upon taking office for his new term on January 20. This move, coupled with the halting of USAID operations worldwide, has significantly disrupted humanitarian efforts, leaving vulnerable populations at risk.
In response, aid groups have argued that US humanitarian programmes not only benefit foreign populations but also serve American interests by preventing the spread of disease, reducing global instability, and strengthening diplomatic ties.
Despite Judge Ali’s initial restraining order, the administration continued to withhold payments. The Supreme Court’s latest ruling reinforces the necessity of fulfilling prior contractual obligations, though the timeline for compliance remains uncertain.
Acting Solicitor General Sarah Harris, representing the administration, contended in a Supreme Court filing that the lower court’s order had imposed an impractical deadline on the government. The administration argued that reviewing payment requests for accuracy and legitimacy requires more time and that rushing the process could lead to errors in financial oversight.
Beyond this case, Trump’s administration, alongside high-profile advisor Elon Musk, has pursued a broader restructuring of the federal government, including dismissing officials and reducing agency funding. Critics warn that these actions, particularly in foreign aid, could have long-term consequences for international relations and humanitarian efforts.
* This report draws on information from Reuters.
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