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Trump admin to pay USD 2 bn in USAID, State Dept debts

Updated on: 08 March,2025 08:13 AM IST  |  Washington
Agencies |

US District Judge Amir Ali ruled in favour of nonprofit groups and businesses that sued over the funding freeze, which has forced organisations around the world to slash services and lay off thousands of workers

Trump admin to pay USD 2 bn in USAID, State Dept debts

US President Donald Trump speaks as he signs an executive order in the Oval Office of the White House in Washington DC. Pic/AFP

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A federal judge on Thursday gave the Trump administration until Monday to pay nearly $2 billion owed to partners of the US Agency for International Development (USAID) and the State Department, thawing the administration’s six-week funding freeze on all foreign assistance.

US District Judge Amir Ali ruled in favour of nonprofit groups and businesses that sued over the funding freeze, which has forced organisations around the world to slash services and lay off thousands of workers.


Ali’s line of questioning suggested skepticism of the Trump administration’s argument that presidents have wide authority to override congressional decisions on spending when it comes to foreign policy, including foreign aid. “The question I have for you is, where are you getting this from in the constitutional document?” he asked a government lawyer.



Thursday’s order is in an ongoing case with more decisions coming on the administration’s fast-moving termination of 90 per cent of USAID contracts worldwide.
Ali’s ruling comes a day after a divided Supreme Court rejected the Trump administration’s bid to freeze funding that flowed through USAID. The funding freeze stemmed from an executive order signed by President Donald Trump on January 20. 

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