Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
A federal appeals court on Thursday allowed a group of nonprofits to continue their legal challenge against the Trump administration’s efforts to freeze billions of dollars in foreign aid, including funds for global health programs. While the US Court of Appeals for the DC Circuit declined to review the core separation of powers claim, its amended decision sends the case back to a lower court, potentially impacting the administration’s ability to withhold congressionally approved funds.
Appeals Court Decision
The decision from the full appellate court represented a mixed outcome for both sides. It was a partial victory for President Trump, as the court opted not to examine the nonprofits’ argument that the aid cuts violated constitutional separation of powers principles.
However, the ruling simultaneously provides a pathway for the groups, who receive these grants, to advance their case. This follows an earlier three-judge panel’s decision that had initially blocked the groups from suing, a stance later revised to permit a limited continuation of their challenge.
The legal proceedings will now revert to US District Judge Amir Ali, a nominee of President Joe Biden. Judge Ali had previously issued an injunction preventing the Trump administration from implementing the aid freeze.
Impact on Supreme Court Appeal
This development also means an emergency appeal filed by the administration at the Supreme Court earlier this week is likely to become moot. The Department of Justice had sought to temporarily halt Judge Ali’s order, arguing it would compel the release of $12 billion in foreign aid by month’s end.
US Circuit Judge Florence Pan, also nominated by President Biden, dissented from the full court’s decision not to review the case. While she acknowledged the revised panel opinion offered a “pathway for the grantees,” she believed it was a mistake not to review the broader implications of blocking one route for challenging Trump’s actions.
Background of the Challenge
President Trump signed an executive order on his first day in office aimed at reducing foreign aid spending, and his administration has consistently battled court orders blocking these efforts. Judge Ali had previously stated that foreign aid spending is a “joint enterprise” between the legislative and executive branches.
Earlier this month, the three-judge panel had initially overruled Judge Ali, holding that only the legislative branch, not nonprofit groups, could sue an administration for changes to congressionally approved spending. The nonprofit grantees then appealed this decision to the full DC Circuit.
The case has reached the Supreme Court once before, with a 5-4 majority in March initially rejecting the administration’s request to keep the funds frozen. That decision effectively allowed the litigation to proceed in lower courts.
The appellate court’s latest ruling ensures the legal battle over the Trump administration’s foreign aid policies will persist, shifting the focus back to the district court for further deliberation on the allocation of significant international funds.
