Federal Appeals Court Says Trump Can’t Cut Billions In Foreign Aid

A federal appeals court dealt President Donald Trump another legal setback Friday, rejecting his attempt to withhold nearly $5 billion in congressionally approved foreign aid.

The D.C. Circuit Court of Appeals voted 2-1 to uphold a lower court’s decision that the administration must release the funding. The panel said “appellants have not satisfied the stringent requirements for a stay pending appeal,” The Hill reported. Justices Cornelia Pillard and Florence Pan, appointed by former Presidents Barack Obama and Joe Biden, respectively, sided with the lower court. Judge Justin Walker, a Trump appointee, dissented.

The decision follows Wednesday’s forceful ruling by U.S. District Judge Amir Ali, who criticized the administration’s refusal to spend funds appropriated by law.

“Defendants have given no justification to displace the bedrock expectation that Congress’s appropriations must be followed and that absent a ‘claim of unconstitutionality that has not been rejected by final Court order, the Executive must abide by statutory mandates,’” Ali wrote in his 43-page decision.

Appeals court rules against Trump’s effort to cut nearly $5 million in foreign aid https://t.co/latE3QvoxY

— The Hill (@thehill) September 6, 2025

Trump had attempted to reclaim $4.9 billion allocated to the State Department and USAID through a rarely used “pocket rescission” mechanism. The administration notified Congress of its intentions in late August. (RELATED: Trump Admin Urges SCOTUS To Quickly Enforce Legal Victory As Deadline To Pay Out Billions Looms)

The move drew immediate criticism from Republican Senate Appropriations Committee Chair Susan Collins, who called it an “attempt to undermine the law.”

Ali’s ruling condemned what he said was the administration’s failure to provide legal justification for withholding the funds, adding that despite “numerous months and opportunities,” officials offered no plausible interpretation of statutes that would permit blocking billions in appropriated dollars.

The appeals court’s decision ensures the foreign aid funds will proceed as Congress intended.