Federal judge mandates Trump administration to reimburse USAID funds
A federal judge confronts the Trump administration over its controversial decision to withhold foreign aid payments through executive action.
According to Fox News, U.S. District Court Judge Amir Ali ordered the administration to pay nearly $2 billion in "unlawfully" restricted funds owed to foreign contractors for completed work, ruling that the executive branch likely exceeded its constitutional authority.
The ruling comes after President Donald Trump's attempted freeze on U.S. Agency for International Development (USAID) payments, which was initiated following billionaire Elon Musk's Department of Government Efficiency (DOGE) report highlighting concerns about wasteful foreign aid spending and potential fraud.
The administration's January 20 executive order and subsequent memo four days later had effectively halted foreign aid funding and restructured existing contracts.
Constitutional battle over foreign aid authority
Judge Ali, a Biden appointee, emphasized in his 48-page ruling that the Trump administration's actions likely violated the separation of powers doctrine.
The executive branch's unilateral decision to withhold congressionally appropriated funds raised significant constitutional concerns. This ruling specifically addresses completed projects predating February 13, with approximately $671 million still outstanding as of last Friday.
The case has already attracted attention from the Supreme Court, which voted 5-4 to reject the administration's request for extending the payment freeze. Instead, the high court returned the matter to the D.C. federal court for Judge Ali to determine specific payment requirements and deadlines.
During last week's extensive four-hour hearing in D.C. federal court, government lawyers presented evidence of their completed review of all foreign aid contractors and grants. The discussion centered heavily on the administration's legal authority to terminate projects with congressionally allocated funds.
Legal implications and congressional authority
Judge Ali, addressing the constitutional aspects of foreign aid administration, stated:
The provision and administration of foreign aid has been a joint enterprise between our two political branches. That partnership is built not out of convenience, but of constitutional necessity.
The judge's ruling specifically targets what he described as executive overreach. His decision highlighted the distinction between the executive branch's authority to determine how to spend appropriated funds versus Congress's exclusive power to decide whether funds should be spent at all.
These complex constitutional questions could potentially return to the Supreme Court if the government chooses to appeal any aspect of the ruling.
The case represents a significant test of executive power limits regarding congressionally approved spending.
Implementation and compliance timeline
The court has established a clear framework for moving forward with the payments. Judge Ali ordered plaintiffs to submit a joint status report by March 14 detailing the Trump administration's compliance with the payment order.
The judge expressed willingness to hold prompt hearings addressing any feasibility concerns related to the payments. This flexibility demonstrates the court's commitment to ensuring proper implementation while maintaining oversight of the process.
The White House and State Department have yet to confirm whether the outstanding amount remains at $671 million or if additional payments have been made since the last reported figure.
Final resolution and future implications
The battle over USAID funding represents a critical moment in the ongoing debate over executive authority and congressional spending power.
Judge Ali's ruling establishes a significant precedent regarding the executive branch's ability to withhold congressionally appropriated funds.
The case highlights the delicate balance between presidential authority and legislative prerogatives in foreign aid administration. As both branches continue to navigate these waters, the outcome of this case may influence future foreign aid policy decisions and executive actions.