Judge orders Trump administration to pay nearly $2 billion in USAID and State Dept. debts

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WASHINGTON (AP) — A federal judge on Thursday gave the Trump administration until Monday to pay nearly $2 billion owed to partners of the U.S. Agency for International Development and the State Department, thawing the administration’s six-week funding freeze on all foreign assistance.

U.S. District Judge Amir Ali ruled in favour of nonprofit groups and businesses that sued over the funding freeze, which has forced organizations around the world to slash services and lay off thousands of workers.

Ali’s line of questioning suggested skepticism of the Trump administration’s argument that presidents have wide authority to override congressional decisions on spending when it comes to foreign policy, including foreign aid.

“It would be an “earth-shaking, country-shaking proposition to say that appropriations are optional,” Ali said.

“The question I have for you is, where are you getting this from in the constitutional document?” he asked a government lawyer, Indraneel Sur.

Thursday’s order is in an ongoing case with more decisions coming on the administration’s fast-moving termination of 90% of USAID contracts worldwide.

Ali’s ruling comes a day after a divided Supreme Court rejected the Trump administration’s bid to freeze funding that flowed through USAID. The high court instructed Ali to clarify what the government must do to comply with his earlier order requiring the quick release of funds for work that had already been done.

The funding freeze stemmed from an executive order signed by President Donald Trump on Jan. 20. The administration appealed after Ali issued a temporary restraining order and set a deadline to release payment for work already done.

The administration said it has replaced a blanket spending freeze with individualized determinations, which led to the cancellation of 5,800 USAID contracts and 4,1000 State Department grants totaling nearly $60 billion in aid.