Federal judge pauses Trump’s freeze on foreign aid

A federal judge on Thursday night temporarily blocked the Trump administration’s freeze on foreign aid funding. He has ordered the reinstatement of contracts and awards for foreign development projects. 

The ruling, delivered by US District Judge Amir Ali, came as a setback for the Trump administration. With the help of DOGE, the govt has aimed to overhaul foreign assistance programs through an executive order issued last month.

According to a Forbes report, the case was brought to court by a coalition of nonprofit organizations and contractors that depend on funding from the US Agency for International Development (USAID) and other federal agencies. 

These groups had been cut off from federal aid or forced to suspend their operations following Trump’s executive order. Trump has imposed a 90-day freeze on foreign development aid.

Judge Ali granted the plaintiffs’ request for a temporary restraining order. He has allowed foreign aid contracts signed before January 20 to resume. However, he stopped short of blocking the executive order itself, stating that it was not necessary to enjoin the president or the order for now.

Concerns over ‘unexplained’ funding freeze

In his ruling, Judge Ali questioned the administration’s rationale for the blanket suspension of USAID. However, the Trump administration argues that it is necessary to ensure that US foreign aid projects align with its foreign policy goals. 

The 90-day suspension was intended to allow the administration to conduct a review of all foreign assistance programs. However, the judge pointed out that no explanation was provided for why a complete halt to congressionally appropriated foreign aid was the appropriate first step in this review.

“Suspension of all congressionally appropriated foreign aid set off a shockwave and upended reliance interests for thousands of agreements with businesses, nonprofits, and organizations around the country, was a rational precursor to reviewing programs,” Ali denoted.

The ruling follows a series of legal challenges from organizations like the Global Health Council, which is involved in international aid projects. The nonprofit, which was a plaintiff in the case, hailed the decision as an important step toward restoring US foreign assistance programs. 

“This ruling is a vital first step toward restoring US foreign assistance programs…It clears the path for organizations to resume their life-saving work, showcasing the best of American values,” said a spokesperson for the council.

The plaintiffs argued that Trump’s executive order and subsequent directives from Secretary of State Marco Rubio were unlawful, claiming the move to freeze funding was unconstitutional. The groups contended that the suspension had disrupted the funding and administration of USAID and other foreign assistance programs, creating chaos within the sector.

Stephen Wirth, an attorney representing a group of seven nonprofits, said in a hearing Wednesday that the freeze forced small businesses to shut down, medical supplies were rotting in ports, and food aid for starving populations was going to waste.

In his remarks, Wirth also spoke on the plight of Democracy International, an international development company that works on USAID projects. The company reportedly had to furlough all of its 95 US-based workers and 93% of its overseas staff. 

According to Wirth, numerous contracts with the federal government had been terminated, leaving many employees without work and critical projects in jeopardy.

Trump administration is persistent on cutting USAID programs 

According to the Justice Department’s filing, at least 230 USAID grants and contracts had been either terminated or placed under stop-work orders since the executive freeze began. This has left many nonprofit organizations unable to access funds for work already completed, with pending invoices remaining unpaid.

Still, Republican leaders believe the non-profitable organization is “wasting” taxpayer’s money and insist that federal judges do not have the power to reverse President Trump’s order to shut down USAID.

Elon Musk, whom Trump tapped to oversee the federal expenditure watchdog Department of Government Efficiency (DOGE), has been bashing federal judges for halting most of his team’s plans to crackdown on imprudent spending.

In a February 12 X poll, Elon Musk asked his followers whether the judges should be impeached for “abusing their authority to obstruct the will of the people,” to which 86% gave the thumbs up.

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