Summary
- The appeals court allows Trump to cut billions in foreign aid.
- Court overturns lower court's order to restore funds.
- Grant recipients lack legal standing to challenge cuts.
- Only the Government Accountability Office can sue over impoundment.
- Ruling supports Trump's broader effort to reduce federal spending.
A prior injunction requiring the Department of State to begin payments, including around $4 billion for the US Agency for International Development (USAID) and $6 billion for HIV and AIDS programs, was overturned by a two-to-one decision on Wednesday.
However, the appeals court's majority ruling did not consider the merits of Trump's ability to revoke monies that Congress had approved.
Rather, it made a decision based on the notion that the plaintiffs lacked the legal foundation necessary to be eligible for a court order.
Circuit Judge Karen Henderson stated in her majority opinion that the aforementioned parties "lack a cause of action to press their claims." Among them are federally funded organizations the Journalism Development Network and the AIDS Vaccine Advocacy Coalition.
“The grantees have failed to satisfy the requirements for a preliminary injunction in any event,”
wrote Henderson, who was appointed by former President George HW Bush.
She was joined in her decision by Gregory Katsas, a Trump appointee.
However, the panel’s third judge — Florence Pan, nominated under former President Joe Biden — issued a dissenting opinion that argued Trump should not be allowed to violate the separation of powers by cutting the aid.
“The court’s acquiescence in and facilitation of the Executive’s unlawful behaviour derails the carefully crafted system of checked and balanced power that serves as the greatest security against tyranny — the accumulation of excessive authority in a single Branch,”
Pan wrote in her opinion.
By March, the Trump administration had declared its intention to essentially dismantle USAID by integrating it into the State Department. In the same month, Secretary of State Marco Rubio announced that he had terminated contracts with USAID in 83 percent of cases.
Reducing "waste" and "bloat" in the government was one of Trump's justifications for these reforms. Additionally, he aimed to better match his "America First" policy with government programming.
However, some contend that the executive branch lacks the authority to dismantle agencies that are established by Congress. Additionally, they contend that Congress has the authority to allocate cash for help, portraying Trump's actions as an attempt to exercise excessive presidential authority.
In a recent ruling, US District Judge Amir Ali held that the Trump administration was required to reimburse humanitarian organizations and other contractors who collaborated with the government to disburse supplies.
According to an estimate made by administration officials in February, $2 billion in unpaid aid was due by the date Judge Ali set.
However, lawsuits to return foreign aid to the contractors have been pushed back by the appeals court's decision.
The Department of Justice will "continue to successfully protect core Presidential authorities from judicial overreach," said Attorney General Pam Bondi, who praised the ruling on Wednesday.
What legal arguments allowed the Trump administration to bypass congressional authority?
The administration asserted that all executive power is vested solely in the president under Article II of the Constitution. This theory holds that executive agencies derive their constitutional authority primarily from the president rather than congressional delegation, allowing the president to override or ignore congressional statutes that restrict executive actions.
The administration argued presidential orders "trump" laws and that agency officials must comply with presidential directives above other laws. This theory challenges traditional checks and balances by prioritizing executive power over congressional oversight.
The administration challenged the limits imposed by the Impoundment Control Act of 1974, which restricts the president's power to withhold congressionally appropriated funds.