Supreme Court Allows Trump Administration to Withhold $4 Billion in Foreign Aid

The Supreme Court on Friday granted the Trump administration permission to withhold billions of dollars in foreign aid, temporarily blocking a lower court order that would have forced the funds to be distributed by the end of the fiscal year.

In a brief unsigned order, the justices put on hold a ruling by U.S. District Judge Amir Ali, a Biden appointee, who had directed the administration to release $4 billion in appropriated foreign aid by Sept. 30. The high court said the government’s concerns over the conduct of foreign affairs outweighed the immediate harm alleged by the challengers.

“On the record before the Court, the asserted harms to the Executive’s conduct of foreign affairs appear to outweigh the potential harm faced by respondents,” the order stated. The justices cautioned, however, that the decision should not be viewed as a final resolution of the case. “The relief granted by the Court today reflects our preliminary view, consistent with the standards for interim relief.”

The ruling split the Court, with Justice Elena Kagan filing a dissent joined by Justices Sonia Sotomayor and Ketanji Brown Jackson. Kagan emphasized that the dispute raised “novel issues fundamental to the relationship between the President and Congress” and criticized the practical impact of the majority’s decision.

“The effect of its ruling is to allow the Executive to cease obligating $4 billion in funds that Congress appropriated for foreign aid, and that will now never reach its intended recipients,” Kagan wrote.

The administration had vigorously opposed Judge Ali’s order, describing it as a direct challenge to presidential authority over foreign policy. Solicitor General John Sauer argued in a Sept. 8 emergency application that forcing the government to obligate the funds would present “a grave and urgent threat to the separation of powers.”

According to Sauer, compliance would have required the administration to begin immediate diplomatic negotiations with foreign governments over how the money would be spent, as well as notify Congress of commitments that President Trump had expressly opposed. The administration said such discussions would undermine ongoing foreign policy priorities.

Trump had moved to block the aid earlier this year through what the White House termed a “pocket rescission,” effectively canceling the appropriated funds before they could be distributed. Judge Ali’s ruling sought to overturn that move, ordering the administration to release the money before the Sept. 30 deadline.

The Supreme Court’s order leaves the aid frozen for now, with the broader constitutional clash over presidential control of foreign aid spending still unresolved.

This is a developing story and will be updated.

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