The U.S. Supreme Court, in a 5-4 decision, has ruled against the Trump administration’s attempt to withhold nearly $2 billion in foreign aid payments. The ruling upholds a lower court order requiring the immediate disbursement of funds to contractors who had completed USAID projects.
President Trump had previously frozen foreign aid spending through an executive order, sparking legal challenges from aid organizations and contractors. The Supreme Court’s ruling reinforces Congress’s authority over federal spending, limiting the executive branch’s power to withhold approved funds.
While the decision ensures payments will be made, dissenting justices warned of potential financial and legal consequences.