US Supreme Court on Friday delivered a victory to President Trump when it ruled in his favor to let his administration hold back almost $4 billion in foreign aid approved by Congress for the ongoing fiscal year, a move in accordance with his "America First" agenda.
The decision comes after a previous order by Chief Justice John Roberts directing a temporary suspension of a lower court injunction compelling the administration to release the funds before the end of September.
The ruling was in a 6-3 division, with Justices Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson dissenting. The liberal justices emphasized that the ruling undermines the constitutional check and balance among the three branches of government. They highlighted that the Constitution "gives Congress the power to make spending decisions through the enactment of appropriations laws," as reported by Reuters.
In its unsigned ruling, the court stated that the damage to the executive branch's control over foreign policy is greater than the possible impact on the plaintiffs—groups and companies that rely on foreign aid funding. "Should not be read as a final determination on the merits. The relief granted by the Court today reflects our preliminary view, consistent with the standards for interim relief," the justices stated, according to CBS News.
The dispute focuses on $4 billion worth of foreign aid, contributions to UN peacekeeping missions, and democracy-promotion projects overseas, all part of the federal budget that has to be expended before September 30, 2025, at the end of the fiscal year. Trump has also sought to abolish the US Agency for International Development (USAID), the principal agency dealing with American foreign assistance.
Congress spent billions in foreign aid last year, with some $11 billion scheduled to lapse at the end of the fiscal year. The administration attempted to deny $4 billion of that money through a "pocket rescission," an infrequently used tactic that seeks to cut off spending on money Congress has already approved and the constitutionally empowered legislative branch has appropriated.
The Trump administration in August called on the Supreme Court to intervene, threatening that absent judicial intervention, it would be forced to release the funds, thus undermining its foreign policy initiatives. The Justice Department, in an emergency appeal, requested the justices to act on a lower court decision that compelled the government to allocate about $12 billion in aid ahead of the fiscal deadline, CNN said.
Russell Vought, Trump’s budget director, defended the move, arguing that the president can legally withhold funds for 45 days after submitting a rescission request—effectively delaying expenditure until the fiscal year concludes. The White House noted that this tactic was last used in 1977, though many legal scholars argue that Trump’s effort to retract billions in congressionally approved aid in this way is unprecedented, Reuters added.
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