US Supreme Court Halts Release Of $2B In Foreign Aid Following Trump Administration Appeal

The head of the US Supreme Court late Wednesday issued an order halting a lower court ruling that required the Trump administration to release some $2 billion in foreign aid. The funds, designated for State Department and USAID projects, were set to be distributed by midnight.

US District Judge Amir Ali had previously set a firm deadline of 11.59 pm Wednesday for the State Department and USAID to settle outstanding payments with contractors for work completed before Feb. 13.

But earlier that evening, the Trump administration took the case to the Supreme Court, seeking intervention to block the release of the frozen foreign aid funds, as reported by CBS News.

Supreme Court Chief Justice Roberts, responsible for handling emergency relief requests from cases in Washington, DC, independently intervened to suspend Ali’s ruling.

Robert set a deadline of Friday 12 noon for the State Department and USAID contractors to respond to the Trump administration request.

In its appeal for emergency relief from the Supreme Court, acting Solicitor General Sarah Harris argued that Ali’s order affects roughly $2 billion and criticized his Wednesday night deadline, saying that it “moved the goalposts.”

She wrote that the order does not align with any actual payment deadlines related to respondents’ invoices, drawdown requests, or any other obligations.

Harris also said officials at the “highest levels of government” are handling the issue and informed the Supreme Court that the Trump administration is “undertaking substantial efforts to review payment requests and release payments.”

She also said the district court’s payment deadline “makes full compliance impossible” and clarified that resuming funding for canceled or suspended contracts requires multiple steps, involving various agencies and extensive documentation.

Harris also called for an administrative stay to preserve the status quo, arguing that it would prevent agencies from being placed in the position of “violating a federal court order requiring payments on thousands of requests within a 30-some-hour deadline, despite their efforts,” while the court examines the validity of their challenge.

Emergency Supreme Court intervention

The Trump administration had already appealed the district judge’s order to the US Court of Appeals for the District of Columbia Circuit, requesting a pause on the ruling. However, by Wednesday evening, the court had not yet responded. Citing the urgency, Harris sought Supreme Court intervention.

Shortly after the administration’s emergency request, the appeals court rejected their bid, ruling that Judge Ali’s orders were not subject to appeal.

District Judge Ali, appointed during the Biden era, is presiding over the case filed by companies, nonprofits, and organizations relying on State Department and USAID funding. Earlier this month, he issued a temporary restraining order, preventing the Trump administration from freezing foreign aid funds during ongoing proceedings.

The plaintiffs told Ali that, despite his order, they still had not received foreign aid funds and needed immediate payment for their work.

Ali approved their request to implement his previous order and gave the State Department and the USAID a 36-hour deadline for the payment.

Peter Marocco, director of foreign assistance at the State Department, said in a declaration earlier this month that the administration is doing an “individualized review” of contracts and grants, calling the process “cumbersome” and requiring multiple steps.

He estimated that USAID must pay at least “$1.5 billion” across 2,000 requests, while the State Department owes “$400 million.” Marocco warned these payments “cannot be accomplished in the time allotted by the Court” and would take weeks instead.