Supreme Court denies Trump’s bid to withhold $2B from USAID contractors
Protestors gather outside of the US Capitol for a rally in support of USAID in Washington, DC on February 5, 2025 (Photo: Getty Images)
The Supreme Court has rejected an emergency request from the Trump administration to avoid paying $2 billion to US Agency for International Development (USAID) contractors, dealing a blow to its efforts to freeze foreign aid funding, according to NBC News.
In a 5-4 decision, the court upheld a lower court ruling that the government must fulfill its payment obligations, though it stopped short of ordering immediate disbursement.
Justice Samuel Alito, joined by three other conservatives, dissented, arguing that Judge Amir Ali lacked the authority to compel the government to release the funds. “I am stunned,” Alito wrote, criticizing what he saw as an overreach of judicial power.
The dispute stems from an executive order by Donald Trump, who, alongside ally Elon Musk, has aggressively pursued federal downsizing, with USAID among the key targets. Contractors argued that the abrupt funding halt violated the Administrative Procedure Act and left them struggling to cover costs for completed projects in Ukraine, Nigeria, and Vietnam.
Background
Earlier, US President Donald Trump issued an order that the US Agency for International Development (USAID) should be closed due to "unprecedented levels of corruption."
Later, the Trump administration terminated more than 90% of the USAID foreign aid awards.
Meanwhile, Trump has also intensified his crackdown on international organizations, including a push for new sanctions on the International Criminal Court.
