Court Ruling Lets Trump Withhold Billions in Foreign Aid Despite Congressional Approval

By Staff, Agencies

A US appeals court has ruled that the Trump administration can block billions of dollars in foreign aid already approved by Congress for this fiscal year, marking a significant victory for President Donald Trump’s push to scale back overseas assistance and reshape US foreign policy under his “America First” agenda.

In a 2-1 decision on Wednesday, the DC Circuit Court of Appeals overturned a lower court ruling that had found the administration’s refusal to release the funds violated constitutional separation of powers.

The panel concluded that the nonprofits and businesses challenging the freeze lacked legal grounds to sue, though it left unresolved the question of whether the president’s impoundment of funds is constitutional.

The case centers on money Congress designated for humanitarian projects such as malaria prevention, child nutrition, and postnatal care. Critics say Trump’s cuts have already created a global crisis, depriving vulnerable populations of life-saving aid.

The administration has defended the freeze as part of its authority to ensure foreign spending aligns with its policy priorities, including merging the US Agency for International Development into the State Department.

Judge Karen LeCraft Henderson, joined by Trump appointee Judge Greg Katsas, wrote that only the US Comptroller General could challenge impoundment decisions under current law.

Judge Florence Pan dissented sharply, warning the ruling ignored “serious implications” for the rule of law and the balance of power between Congress and the executive branch.

The nonprofits may seek a rehearing before the full appeals court. Without further court orders, grantees risk losing the funds entirely if they remain unobligated by the September 30 fiscal year deadline.