A federal court has blocked Trump’s pause on foreign aid, restoring contracts for development projects while litigation continues.
Summary
• A federal court has temporarily banned the Trump administration’s freeze on foreign aid funds, restoring contracts for development projects.
• The judge criticized the lack of reason for the blanket prohibition, citing harm to organizations and companies.
• The decision was a blow to the Trump administration, which had previously attempted to revamp foreign aid programs with the support of DOGE.
• A group of nonprofit organizations and contractors who rely on financing from the US Agency for International Development (USAID) and other government agencies brought the issue to court.
On Thursday night, a federal court temporarily banned the Trump administration’s freeze on foreign assistance funds. He has directed the resumption of contracts and prizes for foreign development projects.
The verdict by US District Judge Amir Ali was a blow for the Trump administration. An executive directive published last month attempted to revamp foreign aid programs with the support of DOGE.
A group of nonprofit organizations and contractors who rely on financing from the US Agency for International Development (USAID) and other government agencies brought the issue to court, according to Forbes.
Following Trump’s executive order, these organizations were either cut off from government funds or forced to halt operations. Trump has declared a 90-day moratorium on foreign development money.
Judge Ali approved the plaintiffs’ request for a temporary restraining order. He has enabled foreign aid contracts signed before January 20 to resume. However, he did not prohibit the executive order itself, adding that enjoining the president or the order was unnecessary for the time being.
Concerns Over the ‘Unexplained’ Budget Freeze
Judge Ali’s judgement called into doubt the administration’s justification for suspending USAID indefinitely. However, the Trump administration claims that it is vital to guarantee that US foreign aid initiatives are consistent with its foreign policy objectives.
The government intended to assess all foreign aid programs during the 90-day moratorium. However, the court noted that no reason was presented for why halting all congressionally approved foreign aid was the appropriate initial step in this inquiry.
“The suspension of all congressionally authorized foreign aid caused a shockwave and upended dependency interests for thousands of agreements with corporations, NGOs, and organizations across the country; it was a sensible preliminary to examining programs,” Ali stated.
The decision comes after a series of court challenges from groups such as the Global Health Council, which participates in foreign charity initiatives. The organization, which was a plaintiff in the lawsuit, praised the ruling as a significant step toward reinstating US foreign assistance programs.
“This verdict is an important first step toward reinstating US foreign aid programs…It clears the way for groups to restart their life-saving efforts while demonstrating the finest of American principles,” stated a council spokeswoman.
The plaintiffs argued that Trump’s executive order and subsequent directives from Secretary of State Marco Rubio, specifically the action to block financing, were unlawful. The groups said that the suspension had affected the funding and management of USAID and other foreign assistance programs, causing instability in the sector.
Stephen Wirth, an attorney for a group of seven NGOs, stated in a hearing on Wednesday that the freeze forced small companies to close, medical supplies were deteriorating in ports, and food aid for needy communities was being wasted.
Wirth also discussed the situation of Democracy International, an international development business that works on USAID projects. The firm had to lay off all 95 employees in the United States and 93% of its international workforce.
The Trump Administration Insists on Lowering USAID
According to the Justice Department’s complaint, at least 230 USAID grants and contracts have been revoked or placed on stop-work orders since the presidential freeze started. This has prevented many charitable groups from accessing funding for already performed work, and pending bills remain unpaid.
Still, Republican leaders feel the non-profit agency is “wasting” government money and argue that federal judges lack the authority to overturn President Trump’s decision to shut down USAID.
Elon Musk, whom Trump appointed to lead the government expenditure monitor Department of Government Efficiency (DOGE), has been criticizing federal courts for delaying most of his team’s initiatives to reduce wasteful spending.
In a February 12 X poll, Elon Musk asked his followers if judges should be impeached for “abusing their position to block the will of the people,” and 86% said yes.
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