Judge Orders Trump Administration To Repay Nearly $2 Billion In Debts To USAID And State Department

A federal judge on Thursday ordered the Trump administration to pay nearly $2 billion by Monday to partners of the U.S. Agency for International Development (USAID) and the State Department, lifting the administration's six-week freeze on foreign assistance funding.

U.S. District Judge Amir Ali ruled in favor of nonprofit groups and businesses that sued over the funding freeze, which had forced organizations worldwide to cut services and lay off thousands of workers. Ali questioned the Trump administration's claim that presidents have broad authority to override congressional spending decisions on foreign aid.

"It would be an earth-shaking, country-shaking proposition to say that appropriations are optional," Ali said. "The question I have for you is, where are you getting this from in the constitutional document?" he asked government lawyer Indraneel Sur.

Thursday's order is part of an ongoing case, with more rulings expected on the administration's termination of 90% of USAID contracts worldwide. Ali's decision follows a divided Supreme Court ruling a day earlier, which rejected the Trump administration's attempt to freeze USAID funding. The high court directed Ali to clarify how the government must comply with his previous order to quickly release funds for completed work.

The funding freeze resulted from an executive order signed by President Donald Trump on January 20. The administration appealed after Ali issued a temporary restraining order and set a deadline for payments. The administration later replaced the blanket spending freeze with individual determinations, leading to the cancellation of 5,800 USAID contracts and 4,100 State Department grants, totaling nearly $60 billion in aid.