Supreme Court Orders Release of $2 Billion in Frozen Aid

Mar. 5, 2025, 4:45 pm ET

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  • The Supreme Court has ordered the Trump administration to release nearly $2 billion in frozen foreign aid.
  • The ruling upholds a lower court’s decision, requiring the funds to be disbursed on an expedited timeline.
  • The decision comes after President Trump’s 90-day pause on foreign aid, which was challenged by American businesses and nonprofits.

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Quick Brief

2-Minute Digest

Essential Context

On his first day in office, President Trump issued an executive order freezing foreign aid for 90 days to review it for “programmatic efficiencies and consistency with United States foreign policy.” This move prompted a lawsuit from American businesses and nonprofits that receive foreign assistance.

Core Players

  • Donald Trump – President Trump and current Republican frontrunner
  • U.S. Supreme Court – Issued the ruling ordering the release of frozen aid
  • U.S. District Judge Amir Ali – Issued the temporary restraining order against the aid freeze
  • American businesses and nonprofits – Plaintiffs in the lawsuit against the Trump administration

Key Numbers

  • $2 billion – Amount of foreign aid to be released
  • 90 days – Duration of the foreign aid freeze ordered by President Trump
  • 5-4 – Supreme Court ruling margin in favor of releasing the aid
  • $43.79 billion – Total foreign assistance disbursed by USAID in fiscal 2023

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The Catalyst

The dispute began when President Trump signed an executive order freezing all foreign aid for 90 days to review its alignment with U.S. foreign policy. This move was swiftly challenged by American businesses and nonprofits, who argued that the freeze was unlawful and violated federal law and the Constitution.

Inside Forces

The Trump administration’s decision to freeze foreign aid was part of its “America First” agenda. The administration argued it needed to review the aid for efficiency and policy alignment. However, the plaintiffs contended that this action exceeded the administration’s authority and was in violation of the Administrative Procedure Act.

The U.S. District Judge Amir Ali issued a temporary restraining order, requiring the administration to end the funding pause. When the administration was deemed to be moving too slowly, Ali ordered the release of approximately $2 billion in funds within 36 hours.

Power Dynamics

The Supreme Court’s decision, with a 5-4 vote, denied the Trump administration’s request to block the lower court’s order. Chief Justice John Roberts and Justice Amy Coney Barrett joined the liberal justices to form the majority. This ruling highlights the ongoing legal debate over the executive branch’s powers versus judicial oversight.

Justice Samuel Alito, in his dissent, criticized the decision, calling it “a most unfortunate misstep that rewards an act of judicial hubris and imposes a $2 billion penalty on American taxpayers.”

Outside Impact

The freeze on foreign aid had significant implications for global humanitarian relief efforts. The pause undermined the delivery of life-saving food and medical aid, affecting millions worldwide. The decision to unfreeze the aid will likely restore critical aid programs and support the work of organizations reliant on these funds.

The administration’s actions were criticized by aid recipients and advocacy groups, who argued that the freeze jeopardized their operations and the lives of people they serve.

Future Forces

The larger case regarding the constitutionality of the aid freeze is still ongoing. U.S. District Judge Amir Ali is set to hold a hearing on the plaintiffs’ motion for a preliminary injunction, which could further impact the future of foreign aid funding.

The Supreme Court’s ruling may set a precedent for future executive actions and judicial interventions in foreign policy and spending decisions.

Data Points

  • Feb. 13, 2025: U.S. District Judge Amir Ali issues a temporary restraining order against the aid freeze.
  • Feb. 25, 2025: Ali orders the release of $2 billion in funds within 36 hours.
  • Mar. 5, 2025: Supreme Court denies Trump administration’s request to block the lower court’s order.
  • Mar. 6, 2025: Scheduled hearing for plaintiffs’ motion for a preliminary injunction.

The Supreme Court’s decision to unfreeze foreign aid underscores the complex interplay between executive power and judicial oversight. As the larger case continues, it will be crucial to watch how this ruling impacts future foreign policy decisions and the balance of power within the U.S. government.