A federal judge has issued a significant ruling against the Trump administration, ordering it to release foreign aid funds to contractors and grant recipients by the end of Wednesday. This marks the third time Judge Amir Ali has ruled that the administration must unfreeze funds that were paused by former President Donald Trump in a 90-day hold on foreign aid. The judge noted that there is no evidence the administration has taken any steps to comply with his previous orders, raising concerns about its willingness to adhere to the law.
The lawsuit, brought by nonprofits and businesses with government contracts, argues that the failure to release these funds could force some organizations to shut down entirely. The plaintiffs allege that the administration’s refusal to pay out the funds, which were appropriated by Congress, violates federal law and the U.S. Constitution. They also highlight concerns about the dismantling of the U.S. Agency for International Development (USAID), which was created by Congress in 1961. The court’s order specifically applies to payments for work completed before February 13, when Judge Ali issued a temporary restraining order.
In a related development, USAID announced on Sunday that most of its staff, except for essential workers, would be placed on paid administrative leave starting immediately. Additionally, 1,600 positions were eliminated, with affected individuals set to receive formal notifications by February 23, 2025. The Trump administration, led by Elon Musk’s Department of Government Efficiency (DOGE), has taken steps to dismantle the agency, with Musk calling USAID a “criminal organisation” and accusing it of being a “viper’s nest of radical-left Marxists who hate America.” Musk has claimed the agency is rife with waste, fraud, and ideological agendas.
However, former USAID officials and humanitarian workers have strongly condemned the move, warning that the demise of the agency will have dire consequences for millions of vulnerable people worldwide. Marcia Wong, a former deputy assistant administrator for USAID’s Bureau for Humanitarian Assistance, called the decision “shortsighted, high risk, and frankly, stupid,” noting that USAID’s expertise in containing disease outbreaks and stabilizing displaced populations is irreplaceable. Last week, a judge also allowed the Trump administration to proceed with plans to recall thousands of USAID staffers from overseas within 30 days, with the agency offering a voluntary, Agency-funded return travel program and other benefits.
Despite the ongoing legal battles, the Trump administration appears determined to push forward with its plans to dismantle USAID. The agency has pledged to keep its overseas personnel safe and informed, providing access to Agency systems and diplomatic resources until they return home. In the coming weeks, USAID will release details on how staffers can retrieve personal items from former workspaces and return government-issued devices. The administration has framed these actions as part of a broader effort to streamline government operations and eliminate inefficiencies, but critics argue that the move will undermine U.S. soft power and leave a vacuum in global humanitarian efforts.
The unfolding drama over USAID and the administration’s handling of foreign aid funds reflects a broader tension between the executive branch and the judiciary, as well as the ongoing debate over the role of U.S. foreign assistance. As the legal battles continue, the stakes remain high for the organizations and individuals who depend on these funds, as well as for the millions of people around the world who rely on U.S. aid. The outcome of these cases will have far-reaching implications for U.S. foreign policy, global humanitarian efforts, and the balance of power in Washington.
