A federal judge has mandated the Trump administration to expedite repayments amounting to nearly US$2 billion owed to partners of the US Agency for International Development (USAID) and the State Department. Judge Amir Ali set a deadline of Monday for the administration to address these debts, which are part of a lawsuit regarding the abrupt cessation of foreign assistance funding.
During a lengthy four-hour hearing, Judge Ali expressed doubt about the administration’s claim that presidents possess expansive authority to bypass congressional spending mandates related to foreign policy. He characterised the partial payments as an essential initial action, given that the administration is facing multiple lawsuits challenging its efforts to dismantle USAID and the six-week funding freeze that has adversely affected aid projects and resulted in numerous layoffs.
Ali remarked that it would be highly problematic to suggest that appropriations are optional, pressing government attorney Indraneel Sur for constitutional justification of the administration’s stance. The judge’s ruling occurs amid ongoing litigation related to the government’s decision to terminate over 90% of USAID contracts globally.
The order follows a recent Supreme Court ruling that declined the administration’s request to halt USAID funding, instructing Ali to clarify the actions required for the government to comply with earlier directives to release funds for completed work.
The funding freeze originated from an executive order signed by Trump on January 20, which led to a significant number of USAID contracts and State Department grants being cancelled. Sur assured the judge that the freeze had concluded, yet nonprofit organisations disputed this, citing the rapid cancellation of numerous contracts as evidence that individual reviews were impractical.
Plaintiffs in the lawsuit, including the AIDS Vaccine Advocacy Coalition and the Global Health Council, are demanding overdue payments and the reversal of contract terminations while insisting that future cancellations adhere to regulatory standards. The administration has recently begun processing repayments following the funding freeze but indicated that the deployment of USAID staff was limited due to the agency’s shutdown.
As the judge concluded the session, he noted that USAID had historically processed thousands of payments before the disruptions and suggested that with additional staff called back, the administration could meet its repayment deadline.