When we left this last week, the Supreme Court temporarily suspended a DC Federal District Court’s directive that would have forced the Trump administration to immediately disburse billions in frozen foreign aid.
The stay, granted by Chief Justice John Roberts, paused Judge Amir Ali‘s temporary restraining order that had required the State Department and USAID to process approximately $2 billion in outstanding payments to contractors and grantees. Plaintiffs from among these organizations had sued after facing a 90-day freeze on development aid implemented through an executive action and subsequent directive from Secretary of State Marco Rubio.
The administration argued in court filings that USAID’s payment processes are time-consuming and cited “historically limited and insufficient payment control mechanisms” as justification for their new “payment integrity review process.” They further contended that forcing these payments would represent substantial intrusion into Executive Branch authority and presidential discretion.
After a follow-up hearing on Friday, March 6, 2025, Judge Ali ruled that the government must make a significant block of payments on invoices received prior to February 13. At this point, we understand that the Government has begun allowing drawdowns on letters of credit and payments on invoices for the named Plaintiffs. These payments were to be made to the plaintiffs by midnight on Monday, March 10, 2025.
The payment system may be opened to others as soon as Monday. A preliminary injunction covering payments to others will be issued on Monday. Whether, how much, and when the Government pays is yet to be determined.
While the immediate issue centers on payment timing, the case raises broader questions about potential Administrative Procedure Act violations and separation of powers that will be addressed in future proceedings. Legal experts suggest the Court may ultimately rule that while the administration has authority to suspend aid programs, it must still fulfill existing financial obligations.
Hear CNN’s discussion of the Supreme Court decision and the larger constitutional questions here and read further here.
