Federal

Chief Justice Roberts Temporarily Halts Order Requiring Trump Administration to Resume $2 Billion in Foreign Aid

Chief Justice John Roberts has temporarily frozen a federal judge’s order that would have required the Trump administration to resume nearly $2 billion in foreign aid payments. The pause came just hours before a Feb. 26 midnight deadline set by U.S. District Judge Amir H. Ali for the administration to comply with his temporary restraining order (TRO.

Judge Ali had initially issued the TRO on February 13, mandating that the State Department and the U.S. Agency for International Development (USAID) restore foreign assistance funds for contracts and awards while legal proceedings continue. The order came in response to a lawsuit brought by a group of businesses, nonprofits, and organizations engaged in foreign aid work.

The dispute stems from President Trump’s executive order issued in January, which declared a three-month review of foreign aid initiatives. This action effectively froze billions of dollars in annual aid and development initiatives abroad.

The court’s decision directly challenged the administration’s ability to unilaterally halt foreign aid funding, limiting the executive branch’s leverage in using aid as a foreign policy tool, and potentially weakening its negotiating position with other countries.

Despite Judge Ali’s order, the Trump administration appeared to be non-compliant, leading to further legal action. On February 25, Ali granted a motion to enforce his TRO, giving the administration until Wednesday night to pay all bills for work completed before February 13.

In response to the February 25 order, the Justice Department filed an emergency motion for a stay pending appeal with the U.S. Court of Appeals for the D.C. Circuit. The government argues that the order is an “extraordinary usurpation of the President’s authority” and that it is impossible to comply with the court’s deadline.

According to court documents, the government claims that it needs more time to ensure payment integrity and prevent potential waste, fraud, and abuse. They state that USAID had “limited and insufficient payments control or review mechanisms,” which led to payments being made “without sufficient opportunity for payments integrity or program review”. The government also argues that the district court’s order infringes upon its sovereign immunity and that the plaintiffs should pursue their claims through established statutory channels, such as the Contract Disputes Act or the Tucker Act, in the Court of Federal Claims.

Plaintiffs, in a joint status report filed on February 26, accuse the government of “willful defiance” of the court’s orders. They allege that the administration has continued to implement the Executive Order by terminating contracts, suspending grants, and pausing disbursements. They also claim that new layers of review have been added to the payment process, and that approvals are being routed through a small number of political appointees who are delaying or blocking payments.

The plaintiffs have proposed a discovery plan, seeking documents and testimony from key government officials, including U.S. Secretary of State Marco Rubio, to investigate the government’s compliance with the TRO.

The administration informed the court it could not meet the February 27 deadline to disburse nearly $2 billion in payments, citing the need for payment integrity reviews and system complexities.

However, in a last-minute move, the Trump administration appealed to the Supreme Court. Chief Justice Roberts’ order instructs the plaintiffs to respond to the administration’s request by noon on Friday, signaling that the court is likely to move quickly on this matter.

Roberts ordered that any response to the application be filed on or before Friday, Feb. 28, by 12 p.m. 

The Trump administration’s actions have resulted in the termination of 90% of USAID’s foreign aid contracts.

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