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Trump Administration Halts Foreign Aid Disbursement

Trump Administration Halts Foreign Aid Disbursement
Source: AP Photo
  • PublishedFebruary 28, 2025

The Trump administration is facing renewed legal challenges after defying a court order to release frozen foreign aid funds by a Wednesday deadline amid foreign aid controversies, Al Jazeera reports.

Despite a ruling from US District Judge Amir Ali mandating the disbursement, the administration argued it was unable to meet the deadline and has appealed the ruling.

Late Tuesday night, government lawyers filed for an appeals court to pause the deadline pending further legal proceedings. They submitted a statement from Pete Marocco, Deputy Director of USAID, claiming it could take “multiple weeks” to disburse the estimated $2 billion in funds. Marocco attributed the delay to new Trump-era procedures designed to align payments with the administration’s “America First” policy of ensuring American interests as a priority.

The controversy stems from Trump’s January 20 announcement of a 90-day pause on foreign aid payments, pending a review to ensure “consistency with United States foreign policy.” Trump has also expressed his intention to shutter USAID, alleging corruption and “radical left lunatics” in the agency.

Recent actions have fueled further concerns. This week, 1,600 USAID workers were fired, with the majority of remaining staff placed on leave. Employees were given just 15 minutes to clear their offices late Tuesday.

The abrupt halt in foreign aid has left nonprofits, contractors, and related businesses in limbo. Prior to the Trump administration, USAID distributed some $60 billion in aid annually.