Court orders Trump to pay $2 billion to USAID

A federal judge sitting in Washington D.C., the United States, has on March 6, 2025, ordered the President Donald Trump’s administration to pay nearly two billion Dollars in debts.

According to online sources, the debts are said to be owed to partners of the U.S. Agency for International Development (USAID) and the State Department.

The court ruling comes after a six-week freeze on foreign assistance funding.

The freeze had forced organizations worldwide to cut services and lay off workers.

The judge ruled in favor of non-profit groups and businesses that sued the United States government over the funding freeze.

In his judgement, Judge Amir Ali stated that appropriations are not optional.

He questioned President Trump’s administration’s authority to override decisions on spending, particularly in foreign aid.

Earlier, Washington App, a news outlet, had reported that the U.S Supreme Court rejected Trump’s bid to freeze nearly $2 billion in USAID’s  bank account.

By a 5-4 vote, the court rejected an emergency appeal from the Republican administration.

It asked Judge Amir to clarify his earlier order that required the quick release of nearly $2 billion in aid for work that had already been done.

It could be recalled that this is the second time that Trump’s administration sought and failed to persuade the conservative-led court.

The outcome, though, is a short-term loss for the administration.

The non-profit groups and businesses that sued said they are still waiting for the money they are owed.

As a result of this, organizations in the U.S. and around the world have cut services and laid off thousands of workers.

While speaking in an interview, HIAS one of the non-profit groups in the case, said it was encouraged to see the Trump administration held accountable.

It, however, regretted “the irreparable damage that the Trump administration has already inflicted on our staff, the people we serve, and the reputation of the United States as a leader and a reliable partner.”

Also, majority of the partners noted that the administration had not challenged Ali’s initial order.

The Trump administration has until Monday to pay the nearly $2 billion dollars owed to USAID and State Department partners.

This decision is a significant development in the ongoing case, which also involves the administration’s termination of 90% of USAID contracts worldwide.

About USAID

The USAID is an independent federal agency responsible for administering civilian foreign aid and development assistance.

It is said that the agency was Established in 1961 by President John F. Kennedy

However, the USAID primary objective is to promote global development, reduce poverty, strengthen democratic governance, and provide humanitarian assistance.

The agency claims it operates in over 100 countries, working with local governments, NGOs, and international organisations.

It has its headquarter in Washington, D.C., with field missions worldwide.

The USAID budget is also determined by Congress and is part of the U.S. foreign assistance budget.

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