In a significant legal setback for the Trump administration, the U.S. Supreme Court on Wednesday denied a request to block a lower court’s order mandating the payment of nearly $2 billion in foreign aid reimbursements. The decision, delivered in a brief unsigned order, upholds an earlier ruling by U.S. District Judge Amir Ali, who had directed the State Department and the U.S. Agency for International Development (USAID) to fulfill their financial obligations for completed work. The decision was a close 5-4.
The Supreme Court’s ruling comes amid a broader legal battle over the administration’s freeze on foreign aid funding. The court acknowledged that the deadline for payments, set for February 26, had already passed, and instructed Judge Ali to clarify the government’s remaining obligations to ensure compliance with his prior temporary restraining order (TRO).
Divided Court, Strong Dissent from Conservative Justices
The decision was met with strong opposition from four conservative justices—Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh—who would have granted the administration’s request to halt the payments. In a sharply worded dissent, Justice Alito expressed his frustration, calling the ruling “a most unfortunate misstep that rewards an act of judicial hubris and imposes a $2 billion penalty on American taxpayers.”
The ruling follows a temporary pause granted by Chief Justice John Roberts on February 25, which delayed the payment order for six days. That pause expired with Wednesday’s decision, effectively requiring the government to proceed with disbursing the funds.
The Legal Battle Over Foreign Aid
The dispute traces back to an executive order issued last month by President Donald Trump, which froze foreign aid distribution to ensure alignment with his administration’s foreign policy goals. Secretary of State Marco Rubio subsequently ordered a suspension of all foreign-aid programs funded by the State Department and USAID.
Several aid groups and contractors challenged the freeze in federal court, arguing that it violated both administrative law and constitutional provisions. Judge Ali initially issued a temporary restraining order on February 13, barring the government from suspending payments. Later, on February 25, he ordered the agencies to process reimbursements for work already completed, prompting the Trump administration’s emergency appeal to the Supreme Court.
Government’s Justification and Supreme Court’s Response
Acting Solicitor General Sarah Harris led the administration’s appeal, contending that Judge Ali’s order overstepped judicial authority and improperly interfered with executive decision-making on foreign aid. She warned that enforcing the ruling could place USAID under an effective “court-run receivership.”
However, aid recipients argued that the freeze had already jeopardized critical humanitarian work and put their organizations at financial risk. In a 21-page brief submitted to the Supreme Court, they warned that the government’s refusal to pay for completed work threatened their “very existence” and the lives of millions worldwide.
Ultimately, the Supreme Court declined to intervene, emphasizing in its brief order that the government’s request did not challenge its obligation to comply with the original February 13 TRO.
What’s Next?
The court did not specify a timeline for releasing the funds, which means the White House can continue to challenge the issue in lower courts.
With the Supreme Court’s decision, the focus now returns to the lower courts. Judge Ali is set to hold a hearing on Thursday, March 6, to consider a preliminary injunction that could extend the freeze on future foreign aid payments. If granted, the dispute may once again land before the Supreme Court in an emergency appeal.
For now, the ruling represents a clear judicial rebuke of the Trump administration’s attempt to unilaterally halt foreign aid payments—at least for obligations that had already been incurred. However, with a conservative-leaning Supreme Court and ongoing legal challenges, the broader battle over Trump’s foreign aid policies is far from over.
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