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Organizations and government contractors have taken legal action against the administration for withholding approved funding.
Multiple news sources report that a U.S. federal judge has ordered President Trump’s administration to release billions in foreign aid by Wednesday night that was frozen last month.
Trump initiated a review of U.S. foreign aid on his first day in office to ensure it aligned with his “America First” agenda, citing a need to cut wasteful spending.
Judge Amir H. Ali initially issued a temporary restraining order (TRO) on February 13, requiring the administration to release the frozen funds for loans and contracts. During a subsequent hearing, government lawyers maintained they were complying with the TRO, arguing it allowed them to cancel or suspend contracts during the review process.
However, in a Tuesday telephone session, Judge Ali stated the administration had not demonstrated compliance with the TRO. According to Reuters, he stipulated that the Trump administration must disburse the foreign aid funds to recipients and contractors by 11:59 p.m. on Wednesday.
The plaintiffs, including NGOs and companies holding government contracts, claim the aid freeze has forced them to lay off staff, discontinue programs, and face potential closure. The NGOs allege the government has withheld tens of millions of dollars from the State Department and USAID, the primary channel for U.S. funding of overseas political projects.
USAID, which allocates approximately $40 billion annually to foreign assistance, became an early target for Trump’s government efficiency initiative, led by Elon Musk and the newly established Department of Government Efficiency.
Trump and Musk have both characterized USAID as corrupt and advocated for its dismantling.