Washington, D.C. — In a significant rebuke to the Trump administration, U.S. District Judge Amir Ali ordered the temporary reinstatement of funding for foreign aid contracts and grants while ongoing litigation unfolds. This decision comes as the administration seeks to implement sweeping changes to federal foreign assistance programs.
The order partially granted a temporary restraining request from nonprofit organizations funded by the U.S. Agency for International Development (USAID) and other agencies, which faced abrupt funding suspensions following an executive order by former President Donald Trump. The directive, announced with a 90-day pause on foreign development aid, had widespread ramifications, including program shutdowns and layoffs.
Nonprofits argued the executive action, coupled with a memorandum by Secretary of State Marco Rubio halting new funding obligations and issuing stop-work orders, exceeded constitutional authority. In court filings, the organizations warned of widespread chaos and humanitarian crises resulting from the suspension.
“Catastrophic Impact on Lives and Livelihoods”
Lawyers representing the plaintiffs, including the Global Health Council, detailed the far-reaching effects of the funding freeze. They highlighted disruptions to essential services, including feeding starving children, combating deadly diseases, and supporting businesses reliant on USAID contracts.
“One cannot overstate the impact of this unlawful course of conduct,” the legal filing stated. “It has caused businesses to shut down, left children hungry, and jeopardized global health initiatives, all while upending constitutional principles.”
Judge Ali, appointed by former President Joe Biden, agreed that the plaintiffs had demonstrated a likelihood of success on their claims and that they would face irreparable harm without emergency relief. However, he limited the scope of the order, blocking the administration from suspending ongoing contracts or halting new obligations for programs funded through USAID and the State Department.
In his ruling, Ali criticized the administration’s lack of justification for a blanket suspension, noting it caused a “shockwave” across thousands of agreements with nonprofits and private entities.
Humanitarian and Economic Fallout
During a Wednesday hearing, attorney Stephen Wirth, representing seven nonprofits, described the devastating consequences of the executive order.
“Small businesses have shuttered, food supplies for starving populations abroad are rotting in ports, and life-saving medical equipment is expiring,” Wirth stated.
One organization, Democracy International, was forced to furlough nearly all of its U.S. and international staff, with its operations grinding to a halt. Justice Department filings revealed that over 230 USAID grants and contracts have been terminated or subjected to stop-work orders since the directive took effect.
Nonprofits also reported being unable to access previously approved funding or collect payment for completed work, further exacerbating financial strain.
Trump Administration Defends Policy Shift
The Trump administration defended the funding pause, arguing it was necessary to evaluate whether foreign aid programs aligned with the administration’s foreign policy priorities. Deputy Assistant Attorney General Eric Hamilton emphasized the president’s authority to determine how congressionally appropriated funds are spent.
However, critics pointed out the arbitrary nature of the suspension and its severe humanitarian impact, with only limited exemptions for life-saving assistance.
USAID in Turmoil
The foreign aid freeze is part of a broader effort by the Trump administration to overhaul USAID, an independent agency established in 1961. Recent actions have included closing overseas missions, recalling employees, and placing thousands of staff members on administrative leave.
In a separate case, U.S. District Judge Carl Nichols, a Trump appointee, blocked the administration from placing over 2,000 USAID employees on leave and ordered their reinstatement. Nichols also prohibited expedited evacuations of USAID staff from host countries, citing labor law violations.
The litigation highlights growing tensions over the role of foreign assistance in U.S. policy and the limits of executive authority. While Judge Ali’s ruling offers temporary relief to affected organizations, the broader legal and political battle over foreign aid funding is far from resolved.
Story by: Mercy Addai Turkson #ahotoronline.com
