U.S. President Donald Trump, a federal judge has ordered the restoration of funding for hundreds of foreign aid contractors affected by a controversial 90-day funding freeze. The ruling, issued late Thursday by U.S. District Judge Amir Ali, temporarily blocks the Trump administration from canceling foreign aid contracts and awards that had been in place before Trump took office on January 20.
The ruling marks the first judicial intervention against Trump’s broad freeze on foreign assistance, a move that sparked widespread criticism from humanitarian organizations, development agencies, and lawmakers. The lawsuit that led to the ruling was brought by two health organizations that receive U.S. funding for overseas programs, arguing that the blanket suspension had caused significant harm to critical global health initiatives.
Trump’s administration had justified the suspension as a necessary step to review foreign aid programs for efficiency and alignment with its policy priorities. However, Judge Ali’s ruling pointed out that the administration had not provided a clear rationale for why an indiscriminate halt to all congressionally appropriated foreign aid was a logical first step in that review process.
“At least to date, defendants have not offered any explanation for why a blanket suspension of all congressionally appropriated foreign aid, which set off a shockwave and upended reliance interests for thousands of agreements with businesses, nonprofits, and organizations around the country, was a rational precursor to reviewing programs,” the judge wrote.
The funding freeze was part of Trump’s broader efforts to reshape the federal government, which included moves to downsize agencies and consolidate power among loyalists. One of the agencies significantly impacted by the freeze was the U.S. Agency for International Development (USAID), which oversees a substantial portion of the country’s foreign assistance programs. The administration had also tasked billionaire entrepreneur Elon Musk with cost-cutting initiatives, further signaling its intent to overhaul government spending.
Trump’s cost-cutting measures extended beyond foreign aid. His administration ordered agencies to prepare for large-scale job cuts, resulting in layoffs among recently hired federal employees who lacked full job security. Additionally, numerous civil servants and high-ranking officials were dismissed or sidelined as part of efforts to restructure the federal bureaucracy.
The court’s ruling is seen as a temporary victory for advocates of foreign aid, but the broader implications of Trump’s policy shifts on international development remain uncertain. As the legal battle unfolds, foreign aid organizations hope for a more stable and transparent approach to U.S. assistance programs moving forward
