Trump: 1, USAID: 0 After Appeals Court Lets Admin Block Billions In Foreign Aid

The Trump administration scored a major victory on Wednesday after a US appeals court ruled that they can cut billions of dollars in foreign assistance approved by Congress.

In a 2-1 decision, the appellate panel reversed a Washington federal judge who ruled that US officials were violating the Constitution’s separation of powers principles by failing to authorize payments in line with what the legislative branch had allocated. 

This means that President Trump’s day-one order to dissolve the US Agency for International Development (USAID) and broadly withhold funding from other foreign aid programs can move forward. 

After the Trump administration cut off foreign aid, two groups of grant recipients sued, claiming a violation of separation of powers. US District Judge Amir Ali (Canadian-born Biden appointee) ruled in March that the administration must make available foreign assistance that Congress appropriated for FY2024. 

Ali’s order also required USAID to pay bills owed through Feb. 13 under existing contracts and grants, however that part of the injunction was not on appeal – and substantially all of the owed payments are now complete according to court records.

Not so fast Ali!

Writing for the majority appellate decision – US Circuit Judge Karen Henderson (Bush appointee) said “The district court erred in granting that relief because the grantees lack a cause of action to press their claims. They may not bring a freestanding constitutional claim if the underlying alleged violation and claimed authority are statutory.” 

BREAKING: In a 2-1 decision, the appellate panel REVERSED order that blocked Trump admin from cutting funding to USAID

This ruling is a SIGNIFICANT win in the efforts to dissolve USAID

Biden appointed Judge Florence Pan, dissented pic.twitter.com/c4tkpFwOlD

— Libs of TikTok (@libsoftiktok) August 13, 2025

One judge, US Circuit Judge Florence Pan (Biden appointee) dissented, writing “The majority holds that when the President refuses to spend funds appropriated by Congress based on policy disagreements, that is merely a statutory violation and raises no constitutional alarm bells.” 

‘Significant Setback’

Lauren Bateman, an attorney for consumer advocacy group Public Citizen which represents the suing grant recipients wrote on Wednesday “Today’s decision is a significant setback for the rule of law and risks further erosion of basic separation of powers principles,” adding “We will seek further review from the court, and our lawsuit will continue regardless as we seek permanent relief from the Administration’s unlawful termination of the vast majority of foreign assistance.”