Federal Judge Orders Trump Administration To Expedite Partial Repayment Of $2B USAID Debts

A U.S. District Judge has ordered the Trump administration to expedite partial payments to some partners of the U.S. Agency for International Development (USAID) and the State Department, requiring the funds to be delivered by Monday.

The federal judge's ruling, issued Thursday in response to a lawsuit, required the administration to pay back a part of the $2 billion in debts to nonprofit organizations and businesses affected by the abrupt shutdown of foreign assistance funding, the Associated Press reported.

In his ruling, District Judge Amir Ali outlined a plan to ensure that at least nine groups, including the Global Health Council, Chemonics International, and the AIDS Vaccine Advocacy Coalition, received funds.

The lawsuit was being led by the AIDS Vaccine Advocacy Coalition and the Global Health Council, along with other plaintiffs, which were seeking back payments for the nearly $2 billion they were owed at the time of the freeze.

The judge did not order the payment of the full amount by Monday's 6 p.m. ET deadline, but a smaller, yet-to-be-determined payment to the aid groups named in the suit.

He requested more details from the plaintiffs by noon Friday to finalize the payment amount and aid groups that will receive them, NBC reported.

The partial payment is seen as a "concrete" first step in addressing the ongoing dispute between the administration and several nonprofit groups and businesses involved in overseas aid and development projects. These organizations had been forced to halt operations and lay off workers after USAID funding was frozen earlier this year.

During a four-hour hearing Thursday, Judge Ali expressed doubt about the Trump administration's argument that the president has the authority to override congressional spending decisions, particularly concerning foreign policy.

He called the notion that appropriations could be optional a "country-shaking proposition."

"The question I have for you is, where are you getting this from in the constitutional document?" he asked the government lawyer.

The ruling followed a decision by the Supreme Court, which rejected the Trump administration's request to freeze funding flowing through USAID. However, the court asked Judge Ali to clarify what actions the government must take to comply with an earlier order requiring the quick release of funds for work that had already been completed.

The funding freeze originated from an executive order signed by President Donald Trump on Jan. 20.

The administration appealed after Judge Ali issued a temporary restraining order, requiring the release of funds for completed projects. He had earlier ordered the temporary release of up to $2 billion in foreign aid allocated before Trump took office.

The freeze affected thousands of USAID contracts and State Department grants, totaling nearly $60 billion in aid, and disrupted humanitarian efforts worldwide.

The Trump administration initially imposed a blanket freeze on spending, but later shifted to reviewing individual payments. It led to the cancellation of over 5,800 USAID contracts -- more than 90% of the agency's projects -- and 4,100 State Department grants.

The USAID provides billions of dollars in international humanitarian aid, but its budget is less than 1% of the total federal budget. In fiscal year 2023, USAID was allocated over $40 billion and helped provide assistance to about 130 countries.

There is uncertainty over whether the payments will be made by the Monday deadline.

The Justice Department informed the judge that the administration expects to make the payments within ten working days, but the weekend could delay the disbursement of funds.

"There are a number of logistical problems that have to be solved," Justice Department attorney Indraneel Sur said Thursday.