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Federal judge orders Trump administration to pay 'unlawfully' restricted USAID funds

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Federal judge orders Trump administration to pay 'unlawfully' restricted USAID funds

A federal judge on Monday ordered the Trump administration to pay the remainder of foreign aid owed to contractors for completed work, noting in a new court ruling that the administration likely violated the separation of powers doctrine by “unlawfully impounding” nearly $2 billion in funds appropriated by Congress.

U.S. District Court Judge Amir Ali, a Biden appointee, said in the ruling that the Trump administration likely exceeded its constitutional authority in attempting to block the payments owed by the State Department and the U.S. Agency for International Development (USAID) to grant recipients and foreign aid contractors.

“Here, the executive has unilaterally deemed that funds Congress appropriated for foreign aid will not be spent,” Ali said.

“The executive not only claims his constitutional authority to determine how to spend appropriated funds, but usurps Congress’ exclusive authority to dictate whether the funds should be spent in the first place.”

SCOTUS RULES ON NEARLY $2 BILLION IN FROZEN USAID PAYMENTS

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A worker removes the U.S. Agency for International Development sign on its headquarters on Feb. 7, 2025 in Washington, D.C. (Kayla Bartkowski/Getty Images)

Ali said the limits of the case, which focuses solely on projects completed before Feb. 13, prevent him from ordering the administration to make payments on other work, or ordering the reinstatement of other contracts. 

As of last Friday, that amount owed by the government stood at around $671 million. It is unclear whether additional payments have been made, though Ali ordered the plaintiffs to file a joint status report by March 14 apprising the court of the Trump administration’s compliance with the order. 

President Donald Trump attempted to freeze USAID payments after billionaire Elon Musk’s Department of Government Efficiency (DOGE) flagged foreign aid spending as highly wasteful and fraudulent. (Brandon Bell/Getty Images)

Plaintiffs were also told to propose a schedule for next steps in this matter. “The Court is prepared to hold a prompt hearing at the request of the parties to address any feasibility concerns,” Ali said in the 48-page order.

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Ali also dedicated a large portion of the 48-page ruling to arguments that the Trump administration likely usurped its executive authority under the Constitution in ordering a blanket freeze on nearly all foreign aid payments in a Jan. 20 executive order, and a memo just four days later that curtailed foreign aid funding and restructured existing contracts. 

White House and State Department officials did not immediately respond to the Fox News’s request for comment on the status of the remaining payments, or if the amount owed still stands at $671 million.

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Volunteers at the Zanzalima Camp for internally displaced people unload sacks of wheat flour that were a part of a delivery from USAID on Dec. 17, 2021, in Bahir Dar, Ethiopia. (J. Countess/Getty Images)

Ali had previously ordered the Trump administration to pay all owed foreign aid funds for previously completed work, totaling $1.9 billion, by Feb. 26 at 11:59 p.m. 

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The Supreme Court took up the case for emergency review last week, but ruled 5-4 to reject the administration’s request to extend the freeze. Instead, the court remanded the case back to the D.C. federal court and Ali to hash out the specifics of what must be paid and when.

But the bulk of last week’s hearing in D.C. federal court, which stretched on for more than four hours, focused largely on the government’s role and review of all foreign aid contractors and grants, which Trump administration lawyers told Ali they had already completed and made final decisions for.

Lawyers were also pressed over whether the Trump administration can legally move to terminate projects whose funds are allocated and appropriated by Congress – something Ali referenced specifically in his ruling.

 

“The provision and administration of foreign aid has been a joint enterprise between our two political branches,” he said. “That partnership is built not out of convenience, but of constitutional necessity.”

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These arguments – and the ruling from Ali – could eventually kick the issue back up to the Supreme Court, should the government move to appeal any part of the memo or the allegations. 

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House Republicans push Johnson to go to war with Senate over SAVE Act

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House Republicans push Johnson to go to war with Senate over SAVE Act

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Several House Republicans are pushing Speaker Mike Johnson, R-La., to go to war with the Senate GOP over an election security bill that has little chance of passing the upper chamber under current circumstances.

House GOP leaders convened a lawmaker-only call on Sunday in the wake of a massive military operation against Iran launched by the U.S. and Israel.

After leaders briefed House Republicans on how the chamber would respond to the ongoing conflict — including a vote on ending Democrats’ weeks-long government shutdown targeting the Department of Homeland Security (DHS) — Fox News Digital was told that several lawmakers raised concerns about the Senate not yet taking up the Safeguarding American Voter Eligiblity (SAVE America) Act. Among other provisions, the act would require voters in federal elections to produce valid ID and proof of citizenship.

Rep. Derrick Van Orden, R-Wis., was among those pushing the House to reject any bills from the Senate until the measure was taken up, telling Johnson according to multiple sources on the call, “If we don’t get this done, or at least show that we’ve got some backbone, we’re done. The midterms are over.”

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Speaker of the House Mike Johnson, R-La., pauses for questions from reporters as he arrives for an early closed-door Republican Conference meeting at the Capitol in Washington, Tuesday, Feb. 3, 2026. (J. Scott Applewhite/AP Photo)

At least three other House Republicans shared similar concerns. Sources on the call said Rep. Brandon Gill, R-Texas, argued that GOP voters were “not enthused” heading into November and that “the single biggest thing” to turn that around would be forcing the Senate to pass the SAVE America Act.

The SAVE America Act passed the House last month with support from all Republicans and just one Democrat, Rep. Henry Cuellar, D-Texas.

JEFFRIES ACCUSES REPUBLICANS OF ‘VOTER SUPPRESSION’ OVER BILL REQUIRING VOTER ID, PROOF OF CITIZENSHIP

Republicans have pointed out on multiple occasions that voter ID measures have bipartisan support across multiple public polls and surveys. But Democrats have dismissed the legislation as an attempt at voter suppression ahead of the 2026 midterms.

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 Senate Majority Leader John Thune speaks at a press conference with other members of Senate Republican leadership following a policy luncheon in Washington, D.C. on Oct. 28, 2025. (Nathan Posner/Anadolu via Getty Images)

The legislation would require 60 votes in the Senate to break filibuster, which it’s likely not to get given Democrats’ near-uniform opposition. But House Republicans have pressured Senate Majority Leader John Thune to use a mechanism known as a standing filibuster to circumvent that — which Thune has signaled opposition to, given the vast amount of time it would take up in the Senate and potential unintended consequences in the amendment process.

It also comes as Congress grapples with the fallout from the strikes on Iran and the need to ensure safety for the U.S. domestically and for service members abroad, both of which will require close coordination between the two chambers.

Johnson told Republicans several times on the Sunday call that he was privately pressuring Thune on the bill but was wary of creating a public rift with his fellow GOP leader, sources said.

HARDLINE CONSERVATIVES DOUBLE DOWN TO SAVE THE SAVE ACT

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“If we’re going to go to war against our own party in the Senate, there may be implications to that,” Johnson said at one point, according to people on the call. “So we want to be thoughtful and careful.”

Sen. Mike Lee, R-Utah, talks with a guest during a “Only Citizens Vote Bus Tour” rally in Upper Senate Park to urge Congress to pass the Safeguard American Voter Eligibility (SAVE) Act on Wednesday, Sept. 10, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

At another point in the call, sources said Rep. Andrew Clyde, R-Ga., suggested pairing a coming vote on DHS funding with the SAVE America Act in order to force the Senate to take it up.

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But both Johnson and House Homeland Security Committee Chairman Andrew Garbarino, R-N.Y., were hesitant about such a move given the enhanced threat environment in the wake of the U.S. operation in Iran.

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Both spoke out in favor of the SAVE America Act, people told Fox News Digital, but warned the current situation merited leaving the DHS funding bill on its own in a bid to end the partial shutdown, so the department could fully function as a national security shield.

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Trump justifies Iran attack as Congress and others raise objections

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Trump justifies Iran attack as Congress and others raise objections

According to President Trump, the United States attacked Iran because the Islamic Republic posed “imminent threats” to the U.S. and its allies, including through its use of terrorist proxies and continued pursuit of nuclear weapons.

“Its menacing activities directly endanger the United States, our troops, our bases overseas and our allies throughout the world,” he said in a recorded statement Saturday.

According to leading Democrats in Congress, Trump’s justification is questionable, especially given his claims of having “completely obliterated” Iran’s nuclear capabilities in separate U.S. bombings last June.

“Everything I have heard from the administration before and after these strikes on Iran confirms this is a war of choice with no strategic endgame,” said Rep. Jim Himes (D-Conn.), ranking Democrat on the House Intelligence Committee and part of a small group of congressional leaders — the Gang of Eight — who were briefed on the operation by Secretary of State Marco Rubio.

That divide is bound to remain an issue politically heading into this year’s midterm elections, and could be a liability for Republicans — especially considering that some in the “America First” wing of the MAGA base were raising their own objections, citing Trump’s 2024 campaign pledges to extricate the U.S. from foreign wars, not start new ones.

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The debate echoed a similar if less immediate one around President George W. Bush’s decision to go to war in Iraq following the Sept. 11, 2001, attacks, also based on claims that “weapons of mass destruction” posed an immediate threat. Those claims were later disproved by multiple findings that Iraq had no such arsenal, fueling recriminations from both political parties for years.

The latest divide also intensified unease over Congress ceding its wartime powers to the White House, which for years has assumed sweeping authority to attack foreign adversaries without direct congressional input in the name of addressing terrorism or preventing immediate harm to the nation or its troops.

Even prior to the weekend bombings, Democrats including Sen. Adam Schiff of California were pushing Congress to pass a resolution barring the Trump administration from attacking Iran without explicit congressional authorization.

“President Trump must come to Congress before using military force unless absolutely necessary to defend the United States from an imminent attack,” Sen. Tim Kaine (D-Va.), a member of the armed services and foreign relations committees, said in a statement Thursday.

In justifying the daylight strikes that killed Supreme Leader Ayatollah Ali Khamenei just two days later, Trump accused the Iranian government of having “waged an unending campaign of bloodshed and mass murder” for nearly half a century — including through attacks on U.S. military assets and commercial shipping vessels abroad — and of having “armed, trained and funded terrorist militias” in multiple countries, including Hezbollah and Hamas.

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Trump said that after the U.S. bombed Iran last summer, it had warned Tehran “never to resume” its pursuit of nuclear weapons. “Instead, they attempted to rebuild their nuclear program and to continue developing long-range missiles that can now threaten our very good friends and allies in Europe, our troops stationed overseas, and could soon reach the American homeland,” he said.

Other Republican leaders largely backed the president.

“The United States did not start this conflict, but we will finish it. If you kill or threaten Americans anywhere in the world — as Iran has — then we will hunt you down, and we will kill you,” said Defense Secretary Pete Hegseth.

“Every president has talked about the threat posed by the Iranian regime. President Trump is the one with the courage to take bold, decisive action,” said Atty. Gen. Pam Bondi.

While Iran’s coordination with and sponsorship of groups such as Hezbollah and Hamas are well known, Trump’s claims about Tehran’s ongoing development of nuclear weapons systems are less established — and the administration has provided little evidence to back them up.

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Democrats seized on that lack of fresh intelligence in their responses to the attacks, contrasting Trump’s latest statements about imminent threats with his assertion after last year’s bombings that the U.S. had all but eliminated Iran’s nuclear aspirations.

“Let’s be clear: The Iranian regime is horrible. But I have seen no imminent threat to the United States that would justify putting American troops in harm’s way,” said Sen. Mark Warner (D-Va.), vice chairman of the Senate Intelligence Committee and a member of the Gang of Eight. “What is the motivation here? Is it Iran’s nuclear program? Their missiles? Regime change?”

Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement that the Trump administration “has not provided Congress and the American people with critical details about the scope and immediacy of the threat,” and must do so.

House Minority Leader Hakeem Jeffries (D-N.Y.) said the Trump administration needs congressional authority to wage such attacks barring “exigent circumstances,” and didn’t have it.

“The Trump administration must explain itself to the American people and Congress immediately, provide an ironclad justification for this act of war, clearly define the national security objective and articulate a plan to avoid another costly, prolonged military quagmire in the Middle East,” he said.

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After the U.S. military announced Sunday that three U.S. service personnel were killed and five others seriously wounded in the attacks, the demands for a clearer justification and new constraints on Trump only increased.

Rep. Ro Khanna (D-Fremont) said Sunday he is optimistic that Democrats will be unified in trying to pass the war powers resolution, and also that some Republicans will join them, given that the strikes have been unpopular among a portion of the MAGA base.

Rep. Thomas Massie (R-Ky.), who partnered with Khanna to force the release of the Jeffrey Epstein files, has said he will work with him again to push a congressional vote on war with Iran, which he said was “not ‘America First.’”

Benjamin Radd, a political scientist and senior fellow at the UCLA Burkle Center for International Relations, said that whether or not Iran represented an “imminent” threat to the U.S. depends not just on its nuclear capabilities, but on its broader desire and ability to inflict pain on the U.S. and its allies — as was made clear to both the U.S. and Israel after the Hamas attacks on Israel on Oct. 7, 2023, which Iran praised.

“If you are Israel or the United States, that’s imminent,” he said.

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What happens next, Radd said, will largely depend on whether remaining Iranian leaders stick to Khamenei’s hard-line policies, or decide to negotiate anew with the U.S. He expects they might do the latter, because “it’s a fundamentalist regime, it’s not a suicidal regime,” and it’s now clear that the U.S. and Israel have the capabilities to take out Iranian leaders, Iran has little ability to defend itself, and China and Russia are not rushing to its aid.

How the strikes are viewed moving forward may also depend on what those leaders decide to do next, said Kevan Harris, an associate professor of sociology who teaches courses on Iran and Middle East politics at the UCLA International Institute.

If the conflict remains relatively contained, it could become a political win for Trump, with questions about the justification falling away. But if it spirals out of control, such questions are likely to only grow, as occurred in Iraq when things started to deteriorate there, he said.

Israel and the U.S. are betting that the conflict will remain manageable, which could turn out to be true, Harris said, but “the problem with war is you never really know what might happen.”

On Sunday, Iran launched retaliatory attacks on Israel and the wider Gulf region. Trump said the campaign against Iran continued “unabated,” though he may be willing to negotiate with the nation’s new leaders. It was unclear when Congress might take up the war powers measure.

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Video: Trump’s War of Choice With Iran

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Video: Trump’s War of Choice With Iran

new video loaded: Trump’s War of Choice With Iran

Our national security correspondent David E. Sanger examines the war of choice that President Trump has initiated with Iran.

By David E. Sanger, Gilad Thaler, Thomas Vollkommer and Laura Salaberry

March 1, 2026

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