In a significant legal development, the Supreme Court has temporarily halted a lower court’s order that would have required the Trump administration to immediately release billions in foreign aid payments. Chief Justice John Roberts granted the administration’s emergency request for a stay, effectively pausing the directive while further legal arguments are prepared.
The case centers on approximately $2 billion in foreign assistance funds from the State Department and USAID. A DC District Court judge had previously issued a temporary restraining order preventing the suspension of foreign assistance funding and requiring the settlement of all outstanding invoices and drawdown requests by a specified deadline.
This legal battle emerged after contractors and nonprofits claimed they were denied federal funds following an executive action and subsequent directive from Secretary of State Marco Rubio that imposed a 90-day freeze on foreign development aid. The judge had also mandated that the government issue internal directives to ensure compliance with the court’s order.
Despite these judicial instructions, the State Department and USAID have continued to resist making the payments. In their court filing, the agencies argued that USAID’s payment process involves multiple time-consuming steps and cited “historically limited and insufficient payment control mechanisms” as justification for implementing a new “payment integrity review process.” They further raised constitutional concerns, asserting that being forced to make these payments represents substantial intrusion into Executive Branch prerogatives and presidential discretion.
In staying the District Court’s order, Chief Justice Roberts has allowed additional time for both parties to prepare their evidence. While the immediate issue revolves around the prompt payment directive, broader questions regarding potential Administrative Procedure Act violations and separation of powers will be addressed in future proceedings.
Legal observers anticipate the Court may ultimately rule that while the administration has authority to terminate aid awards, it must still fulfill existing financial obligations.
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