A US federal appeals court has lifted an injunction that required the State Department to continue making foreign aid payments, handing a legal victory to President Donald Trump.
In a 2-1 decision on Wednesday, the US Court of Appeals for the District of Columbia said a lower court erred when it ordered the Trump administration to restore foreign assistance previously approved by Congress.
Trump imposed a 90-day freeze on all foreign aid on January 20, the day he was inaugurated for a second term, through an executive order.
His administration then moved to scale back USAID, the primary US foreign aid agency, placing many staff on leave and considering bringing the agency under the State Department.
Two nonprofit groups that receive federal funding — the AIDS Vaccine Advocacy Coalition and the Journalism Development Network — sued, arguing the freeze was unlawful.
US District Judge Amir Ali, a Biden appointee, had ordered the administration to release nearly $2 billion in aid to humanitarian partners worldwide.
Writing for the appeals court majority, Judge Karen Henderson said the nonprofits "lack a cause of action to press their claims" and that only the Government Accountability Office could challenge the president’s decision to withhold funds.
Henderson, appointed by President George H.W. Bush, was joined by Judge Gregory Katsas, a Trump appointee.
The ruling did not address whether Trump’s freeze violated the US Constitution by infringing on Congress’ power to allocate spending.
In her dissent, Judge Florence Pan, a Biden appointee, accused the majority of enabling executive overreach.
"The court's acquiescence in and facilitation of the Executive's unlawful behavior derails the carefully crafted system of checked and balanced power that serves as the greatest security against tyranny – the accumulation of excessive authority in a single Branch," Pan wrote.
A spokesperson for the Office of Management and Budget welcomed the ruling, saying it prevents "radical left dark money groups" from "maliciously interfering with the president’s ability to spend responsibly and to administer foreign aid in a lawful manner in alignment with his America First policies."
The decision leaves the nonprofits with limited legal options as the administration continues to withhold aid funding.
