Donald Trump’s bid to choke off billions in foreign aid has run into another wall—this time from the U.S. Court of Appeals in Washington. The court refused to shield his administration from a lower court order that demands the White House unlock nearly $11 billion Congress already approved for overseas projects.
The decision, issued without much explanation, left the administration scrambling. Judges said the government hadn’t met the high bar needed to pause the lower court’s directive. Only one judge, a Trump appointee, dissented—arguing the ruling should have been put on ice.
At the heart of the clash: money earmarked for everything from United Nations peacekeeping to democracy initiatives abroad. Trump’s team had promised to spend about $6.5 billion but tried to sideline the remaining $4 billion, much of it tied to USAID, the very agency Trump has sought to dismantle.
Earlier this week, U.S. District Judge Amir Ali made clear that the administration cannot simply sit on appropriated funds. Unless Congress itself pulls the plug, he ruled, the money must flow. Ali’s order effectively blocks Trump from using a “pocket rescission”—a budget maneuver meant to stall spending until it expires at the end of the fiscal year.
The White House insisted the tactic was lawful, pointing out it hadn’t been tried since 1977. But with the clock ticking toward September 30, the courts are signaling little patience for creative end-runs around congressional authority.
The Supreme Court has already dipped its hand into the dispute once, forcing the administration to pay aid groups for work they’d already completed. If higher courts stand by Ali’s order, Trump’s effort to strangle foreign aid at the source could collapse before fiscal year-end.
