Judge Orders Trump Administration to Temporarily Restore Funding for Foreign Assistance Programs: Federal Judge Rules in Favor of Nonprofit Organizations
A federal judge has ruled against the Trump administration, ordering the temporary restoration of funding for foreign aid contracts and other awards. The decision comes as a blow to President Trump's efforts to implement significant changes within the federal government.
U.S. District Judge Amir Ali has partially granted a request for a temporary restraining order from a coalition of organizations that rely on funding from the U.S. Agency for International Development (USAID) and other agencies. These organizations found themselves cut off from federal funding or had to halt their operations following President Trump's executive action, which imposed a 90-day pause on foreign development aid.
The nonprofit organizations contended that President Trump's directive, along with a subsequent memorandum from Secretary of State Marco Rubio, was an unconstitutional exercise of executive power. They argued that the directive had caused chaos in the funding and administration of USAID and other foreign assistance programs.
According to lawyers representing the Global Health Council and other challengers, the impact of the directive has been severe, leading to the closure of programs, layoffs, and disruptions in aid delivery to vulnerable populations worldwide.
Judge Ali, appointed by former President Joe Biden, has prohibited top Trump administration officials from enforcing the pause on foreign assistance funded through the State Department or USAID without proper authorization. The judge has also halted new funding obligations for foreign assistance programs pending further review. Additionally, the administration is barred from suspending existing contracts, grants, or other foreign assistance awards that were in effect as of January 19.
During a hearing, Stephen Wirth, representing a group of seven nonprofits, highlighted the devastating impact of President Trump's executive order. Wirth emphasized that the freeze on funding for foreign assistance programs had forced small businesses to close, resulted in food spoilage in ports, and caused medical supplies to expire.
Democracy International, an international development company working with USAID, had to furlough all its U.S.-based employees and a significant portion of its overseas staff due to the funding freeze.
Lawyers for the nonprofits revealed that organizations receiving foreign assistance grants had been unable to access their funds, leading to contract terminations and unpaid invoices for completed work. The Justice Department disclosed that over 230 USAID grants and contracts had been terminated or subjected to stop-work orders since the directive was issued.
The Trump administration defended its decision to pause U.S. foreign development assistance, citing the need to align supported projects with the administration's foreign policy objectives. Eric Hamilton, deputy assistant attorney general, argued that the president has the authority to determine the utilization of funds appropriated by Congress for foreign assistance.
Despite the administration's justifications, Judge Ali's ruling reflects concerns about the lack of clarity regarding the rationale behind the blanket suspension of all congressionally approved foreign aid. The judge emphasized the need for a more reasoned approach to reviewing foreign assistance programs.
The cases before Judge Ali stem from the Trump administration's recent attempts to restructure USAID, an independent agency established in 1961. The agency has faced upheaval due to the freeze on foreign assistance funding, stop-work orders for contractors, and the closure of overseas missions.
While President Trump's initiatives have faced legal challenges, another federal judge, Carl Nichols, appointed by Mr. Trump, has intervened in a separate case involving labor unions. Judge Nichols has prevented the government from placing thousands of employees on administrative leave and ordered the reinstatement of those already on leave.
