Appeals court lets the White House suspend or end billions in foreign aid

U.S. President Donald Trump speaks with reporters in the James Brady Press Briefing Room at the White House, Monday, Aug. 11, 2025, in Washington. (AP Photo/Alex Brandon)

WASHINGTON — A divided panel of appeals court judges ruled Wednesday that the Trump administration can suspend or terminate billions of dollars of congressionally appropriated funding for foreign aid.

Two of three judges from the U.S. Court of Appeals for the District of Columbia Circuit concluded that grant recipients challenging the freeze did not meet the requirements for a preliminary injunction restoring the flow of money.

In January, on the first day of his second term in the White House, Republican U.S. President Donald Trump issued an executive order directing the State Department and the U.S. Agency for International Development to freeze spending on foreign aid.

After groups of grant recipients sued to challenge that order, U.S. District Judge Amir Ali ordered the administration to release the full amount of foreign assistance that Congress had appropriated for the 2024 budget year.

The appeal court’s majority partially vacated Ali’s order.

Judges Karen LeCraft Henderson and Gregory Katsas concluded that the plaintiffs did not have a valid legal basis for the court to hear their claims. The ruling was not on the merits of whether the government unconstitutionally infringed on Congress’ spending powers.

“The parties also dispute the scope of the district court’s remedy but we need not resolve it ... because the grantees have failed to satisfy the requirements for a preliminary injunction in any event,” Henderson wrote.

Judge Florence Pan, who dissented, said the Supreme Court has held “in no uncertain terms” that the president does not have the authority to disobey laws for policy reasons.

“Yet that is what the majority enables today,” Pan wrote. “The majority opinion thus misconstrues the separation-of-powers claim brought by the grantees, misapplies precedent, and allows Executive Branch officials to evade judicial review of constitutionally impermissible actions.”

The money at issue includes nearly US$4 billion for USAID to spend on global health programs and more than $6 billion for HIV and AIDS programs. Trump has portrayed the foreign aid as wasteful spending that does not align with his foreign policy goals.

Henderson was nominated to the court by Republican President George H.W. Bush. Katsas was nominated by Trump. Pan was nominated by Democratic former U.S. president Joe Biden.

Michael Kunzelman, The Associated Press