The administration under President Donald Trump has contended that it is unable to comply with an imminent deadline to disburse frozen funds designated for foreign aid, notwithstanding a court ruling that requires such action. This deadline is scheduled for Wednesday at 11:59 PM Eastern Time (04:59 GMT Thursday), following a determination by US District Judge Amir Ali in Washington, DC, which indicated that the Trump administration had not adhered to a prior order directing the release of the funds.
On Tuesday night, the administration’s legal representatives filed an appeal against Judge Ali’s ruling. In their submissions, they requested that an appeals court temporarily suspend the deadline while the legal matters are resolved. Additionally, they included a statement from Pete Marocco, a Trump associate who serves as the deputy director of the US Agency for International Development (USAID), which is central to the case. Marocco indicated that the disbursement of payments could take “multiple weeks” and estimated that $2 billion would be required. He further noted that the delays were attributable to new procedures implemented during the Trump administration, aimed at aligning the payments with the administration’s policy objectives.
Judge Ali had previously rejected that argument, stating it did not constitute a legitimate basis for withholding contract payments. Upon commencing his second term on January 20, Trump announced a 90-day suspension of foreign aid payments, pending a review of assistance programs. This review, as outlined in his directive, was intended to ensure alignment with United States foreign policy.
Trump has also sought to dismantle USAID, alleging corruption and claiming it is managed by “radical left lunatics,” without providing any evidence of misconduct. Recently, 1,600 USAID employees were terminated, and most of the remaining personnel were placed on leave. Late on Tuesday, USAID staff were notified that they would have only 15 minutes to vacate their offices.
The abrupt cessation of foreign aid has left nonprofits, contractors, and other businesses in a precarious situation, with no definitive timeline for the government to fulfill its financial obligations. Prior to the Trump administration, USAID was responsible for distributing approximately $60 billion in aid annually.
On February 13, Judge Ali urged the Trump administration to temporarily lift the funding freeze to enable the government to compensate nonprofits and contractors up to that date. However, the judge has recently noted that, in the intervening weeks, Trump officials have “maintained their blanket suspension of funds.” He accused the Trump administration of utilizing this period to devise a new, retrospective justification for the widespread suspension. Meanwhile, the nonprofits and businesses that previously engaged with USAID have cautioned that, without payment, they may be compelled to shut down.
