A U.S. federal appeals court has declined to block a ruling that prevents the Trump administration from unilaterally withholding billions of dollars in congressionally approved foreign aid. The decision by the U.S. Court of Appeals for the District of Columbia Circuit requires the administration to swiftly move to spend the funds before their authorization expires at the end of September. This ruling upholds a lower court’s finding that the executive branch cannot simply choose not to spend money appropriated by Congress.
The legal battle began after aid groups, expecting to compete for the funding, sued the administration. U.S. District Judge Amir Ali had previously ruled that the administration must comply with appropriations laws, stating it remains under a duty to spend the money unless Congress itself changes the law. The funds in question, roughly $11 billion, were earmarked for a variety of purposes including foreign assistance, United Nations peacekeeping operations, and democracy-promotion programs overseas.
In its effort to withhold nearly $4 billion from the U.S. Agency for International Development (USAID), the Trump administration employed a tactic known as a “pocket rescission,” arguing the president could withhold funds for 45 days after requesting a rescission from Congress. This move would effectively run out the clock until the fiscal year ended. However, Judge Ali ruled that merely asking Congress to rescind the funds was insufficient and that spending must proceed unless Congress affirmatively acts to stop it.
The appeals court offered no explanation for its decision, stating only that the administration had not met the “stringent requirements” to pause the lower court’s ruling during an appeal. One Trump-appointed judge dissented from the decision. The ruling now pressures the administration to release the funds quickly, though the case is likely to continue through the appeals process, potentially reaching the U.S. Supreme Court, which has already intervened in a related matter earlier in the case.
