2-1 judgment: Appeals court allows Trump admin to cut billions in foreign aid; overturns lower court ruling

A divided US federal appeals court ruled on Wednesday that the Trump administration can proceed with billions of dollars in cuts to foreign assistance programs.

In a 2-1 decision, the US Court of Appeals for the District of Columbia Circuit overturned a lower court ruling that would have required the restoration of aid funds approved by Congress.

After returning to office in January, President Trump froze billions in foreign aid spending and began winding down the US Agency for International Development (USAID), the main federal agency responsible for distributing humanitarian assistance with health and emergency programs in about 120 countries.


Earlier this year, District Judge Amir Ali, appointed by former President Joe Biden, issued a temporary restraining order prohibiting the Trump administration from suspending the foreign aid funds approved by Congress for fiscal year 2024.

The appeals court reversed that decision, ruling that the grant recipients who sued did not have the legal right to bring the case. "The district court erred in granting that relief because the grantees lack a cause of action to press their claims,” wrote Judge Karen Henderson, appointed by former President George HW Bush.

Henderson and Judge Gregory Katsas joined the majority opinion, while Judge Florence Pan, a Biden appointee, dissented.

Trump after assuming presidency for the second term has embarked on a broad effort to shrink or dismantle large parts of the federal government during his second term.