A federal judge has ordered the Trump administration to process foreign aid payments by Monday at 6 p.m., following a Supreme Court ruling that rejected the administration's emergency appeal to maintain a broad freeze on foreign assistance. The decision, issued Thursday by U.S. District Judge Amir Ali, requires the government to disburse outstanding payments to plaintiffs in two lawsuits who claim they are owed funds for previously approved aid projects.
While the ruling compels the government to process invoices submitted before Feb. 13, the total amount due remains unclear. However, estimates suggest that at least several hundred million dollars will need to be disbursed by the deadline.
The order comes just one day after the Supreme Court sent the case back to Ali for further clarification. The judge's initial directive had set a Feb. 26 deadline for the State Department to pay an estimated $2 billion owed to aid contractors and grant recipients abroad. That deadline lapsed while the administration's appeal was pending.
During a four-hour hearing on Thursday, Ali emphasized that he intended to adhere to the Supreme Court's guidance, which urged him to consider the feasibility of compliance timelines. "I intend to take that instruction very seriously," Ali stated.
The State Department has already processed $70 million in payments following Wednesday's Supreme Court ruling, according to a Justice Department filing. Ali cited this as evidence that the agency could approve further payments within the next four days. "The government's made a good showing by getting that," he said. "I do appreciate the government's taking action on that front."
Justice Department attorney Indraneel Sur argued that logistical challenges-such as banks being closed over the weekend-could delay payments. However, Ali dismissed that concern, noting that the administration had successfully processed payments overnight in the past.
The core issue in the case is whether Trump's foreign aid freeze, imposed under a broader initiative to reduce government spending and improve "efficiency," remains in effect despite legal challenges. The administration insists the freeze has been lifted and that each aid contract has undergone a case-by-case review.
"The pause is essentially finished," Sur told the court, asserting that the administration has terminated many contracts based on specific criteria rather than a blanket policy.
However, attorney Stephen Wirth, representing some of the affected aid contractors, contested that claim, arguing that the government had simply repackaged the freeze under a different justification. "Defendants never lifted the pause on foreign assistance. ... Instead, they doubled down," Wirth said, urging the court to overturn contract terminations. "I don't think here that the government has changed course."
Ali did not immediately rule on whether to extend the temporary restraining order (TRO) that previously blocked Trump's foreign aid freeze. The current order is set to expire on Monday, leaving uncertainty over whether additional funds will be released.
The case originated from a broader dispute over nearly $2 billion in foreign aid payments. Contractors and grant recipients argue that the U.S. Agency for International Development (USAID) has failed to process payments for completed projects, despite being legally obligated to do so.
