A federal appeals court has ruled that the Trump administration can proceed with cuts to billions of dollars in foreign aid. The decision, made by a divided panel of the U.S. Court of Appeals for the District of Columbia Circuit, came on Wednesday. The court's ruling allows the administration to suspend or terminate funding that Congress had previously appropriated.

In a 2-1 decision, the judges determined that the nonprofit organizations challenging the funding freeze did not meet the legal requirements for a preliminary injunction. This ruling partially overturned a previous order from U.S. District Judge Amir Ali, who had mandated the release of foreign assistance funds for the 2024 budget year.

Judges Karen LeCraft Henderson and Gregory Katsas, who were appointed by Republican presidents, concluded that the plaintiffs lacked a valid legal basis for their claims. They stated, "The district court erred in granting that relief because the grantees lack a cause of action to press their claims." The judges emphasized that only the head of the Government Accountability Office has the authority to sue under the Impoundment Control Act.

The funding in question includes nearly $4 billion for global health programs and over $6 billion for HIV and AIDS initiatives. President Trump has criticized foreign aid as wasteful spending that does not align with his administration's foreign policy objectives.

Judge Florence Pan, who dissented, expressed concern that the ruling undermines the separation of powers. She stated, "The majority holds that when the President refuses to spend funds appropriated by Congress based on policy disagreements, that is merely a statutory violation and raises no constitutional alarm bells." Pan argued that the decision could lead to significant consequences for the rule of law and the balance of power within the government.

The legal battle began when Trump issued an executive order on his first day in office, directing the U.S. Agency for International Development (USAID) to freeze foreign aid spending. This order prompted multiple lawsuits from grant recipients. In March, Judge Ali had issued a temporary restraining order blocking the executive order from taking effect, but the appeals court's ruling has now lifted that order.

Lauren Bateman, an attorney representing the grant recipients, criticized the ruling, stating, "Today's decision is a significant setback for the rule of law and risks further erosion of basic separation of powers principles." She indicated that the lawsuit would continue as they seek permanent relief from the administration's actions.