Supreme Court Rules Trump Administration Must Release Frozen USAID Funds

In its final attempt to overturn a temporary restraining order requiring the release of foreign aid, President Donald Trump’s administration failed to sway the Supreme Court.

On Wednesday, the high court denied the request to vacate the U.S. District Court’s order mandating the release of United States Agency for International Development (USAID) funding by Feb. 26.

“Given that the deadline in the challenged order has now passed, and in light of the ongoing preliminary injunction proceedings, the District Court should clarify what obligations the government must fulfill to ensure compliance with the temporary restraining order, with due regard for the feasibility of any compliance timelines,” according to the decision.

The court ruled 5-4, with Justices Samuel Alito, Clarence Thomas, Neil Gorsuch and Brett Kavanaugh dissenting.

“Does a single district-court judge who likely lacks jurisdiction have the unchecked power to compel the government of the United States to pay out (and probably lose forever) 2 billion taxpayer dollars?” Alito wrote in the eight-page dissenting opinion. “The answer to that question should be an emphatic ‘no,’ but a majority of this court apparently thinks otherwise. I am stunned.”

AIDS Vaccine Advocacy Coalition, a New York City-based nonprofit that strives to prevent HIV, is one of the nonprofits suing the Trump administration. Mitchell Warren, the nonprofit’s executive director, welcomed the Supreme Court’s decision.

“This ruling is particularly appropriate in light of the critical importance of honoring commitments to global health initiatives, including lifesaving HIV/AIDS programs,” he said in a statement. “Lives are at stake, and delays in funding directly impact those in need. AVAC remains dedicated to advocating for sustained and uninterrupted support for HIV/AIDS research and prevention.”

The Supreme Court decision addresses a temporary restraining order that U.S. District Judge Amir H. Ali issued Feb. 13 in two cases brought against the Trump administration regarding frozen USAID funds that nonprofit and for-profit organizations receive to provide aid overseas for everything from global health programs to investigative journalism. After noncompliance from the Trump administration, the judge extended the temporary restraining order and mandated payment from frozen payments to USAID grantees and contractors that the government cited could be nearly $2 billion. The temporary restraining order is currently set to expire March 10, according to court documents.

The case had a status hearing yesterday in the U.S. District Court to clarify obligations and a timeline to meet them, as the Supreme Court requested.

Though many of the organizations suing the Trump administration had started receiving payments totaling millions of dollars, some have not and many have not received full payments of funds owed to them, according to court documents. Ali gave the government a deadline of 6 p.m. EDT March 10 to make to-be-determined payments.

Arnold & Porter Kaye Scholer attorneys representing USAID grantees and contractors, including five nonprofits, requested the judge have the government prioritize these items for their clients and their clients’ members:

1. Invoices and letter of credit drawdown requests on all contracts for work completed prior to the entry of the court’s Feb. 13 temporary restraining order.
2. Other payments for work performed before Feb. 13 at rates comparable to those achieved by the agency prior to Jan. 20.
3. Letter of credit drawdown requests, as well as reimbursement requests on grants and assistance agreements for work completed prior to Feb. 13.

They also requested the judge rule that the government pay invoices for their clients and their clients’ members within 30 days of receipt while the temporary restraining order is in effect. Additionally, they should honor the terms of foreign assistance awards — ending blanket terminations and fulfilling drawdown requests for operating funds — as were done prior to Jan. 20. Finally, they wish the government would rescind all mass terminations issued since Jan. 20.

As for the case involving AIDS Vaccine Advocacy Coalition and Journalism Development Network, a Baltimore-based nonprofit that supports media organizations across the world, their attorneys from Public Citizen requested that the government unfreeze all USAID funding and rescind all terminations, suspensions and stop-work orders.

“During a four-hour hearing, the government continued to insist that shutting down humanitarian assistance was both reasonable and lawful,” Allison Zieve, director of Public Citizen Litigation Group, said in a statement about yesterday’s hearing. “It also continued to take the position that the court has no authority to grant relief.

“In response, though, the court set a deadline of Monday evening for payments to our clients that are overdue. He also indicated that he will set a timeline for payment of others’ overdue invoices. And we are hopeful that the judge will provide additional relief when he rules on the full scope of our preliminary injunction motion on Monday.”