U.S. Supreme Court Deals Setback to Trump’s Foreign Aid Freeze

A divided U.S. Supreme Court ruled on Wednesday to reinstate a lower court ruling, mandating the immediate release of up to $2 billion owed to contractors for completed work. This decision marks a significant blow to President Donald Trump’s foreign aid freeze, with four justices dissenting.

Supreme Court Rejects Trump’s Request

The justices, in a brief ruling with minimal explanation, rejected Trump’s request to dismiss the order. They directed a federal trial judge to clarify the government’s obligations, as the missed payment deadline remains unresolved.

Dissents from Conservative Justices

Chief Justice John Roberts and Justice Amy Coney Barrett sided with three liberal justices in the majority. Meanwhile, conservative Justices Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh dissented. Alito expressed his shock at the ruling, marking a sharp division within the Court.

Humanitarian Organizations Urge Immediate Action

Humanitarian organizations are calling for the urgent release of funds from the U.S. Agency for International Development (USAID) and the State Department. They argue that the freeze disrupts critical projects, forcing partners to lay off thousands of U.S. workers and endangering vulnerable populations dependent on the aid.

Canada and Mexico Bet Boldly on a Free Trade Destiny

Few nations have invested as deeply in free trade as Mexico and Canada, yet President Trump’s 25% tariffs have placed…

Court’s Decision Signals Possible Limits to Trump’s Actions

The Supreme Court’s ruling signals a potential check on Trump’s sweeping attempts to overhaul government operations and reduce spending, even in areas with congressional funding allocations. This ruling also suggests that the Court might back trial judges who believe the administration’s actions violate the law.

Judge Ali’s Role in Enforcing Compliance

U.S. District Judge Amir Ali, appointed by President Joe Biden, is scheduled for a hearing to determine whether a broader, long-term injunction should be imposed. Ali had previously given the administration 36 hours to comply with his order, following evidence that the government ignored his earlier directive.

Trump’s Legal Team and Aid Organizations at Odds

Trump’s legal team argued that the deadlines set by Judge Ali were impractical, particularly as the administration laid off thousands of USAID staff. Meanwhile, aid organizations criticized the government’s delay, accusing the administration of attempting to manipulate the legal process.

Ongoing Reshaping of U.S. Foreign Policy

This ruling comes as the Trump administration continues to reshape U.S. foreign policy by cutting foreign assistance contracts and dismantling USAID. The agency, which managed $43 billion in 2023, has seen significant layoffs and furloughs under the current administration.