A federal judge ordered the Trump administration to reverse its foreign aid funding freeze on existing programs — the result of a
stop-work order issued by U.S. Secretary of State Marco Rubio on Jan. 24 — in a key ruling for contractors and NGOs that had to halt their work pending a 90-day review.
“The Court finds Plaintiffs have satisfied their burden for a narrower injunction concerning the implementation of the blanket suspension of foreign aid funding,” Judge Amir Ali of the Federal District Court in Washington wrote in the order, issued late Thursday night.
The temporary restraining order issued in a pair of lawsuits brought by implementers of
USAID and
State Department projects and programs will require the government to immediately stop any suspensions or pauses that are preventing the obligation or disbursement of foreign assistance funds for contracts, grants, cooperative agreements, loans, or other awards that existed prior to Jan. 19.
“Defendants have not offered any explanation for why a blanket suspension of all congressionally appropriated foreign aid, which set off a shockwave and upended reliance interests for thousands of agreements with businesses, nonprofits, and organizations around the country, was a rational precursor to reviewing programs,” the judge wrote.
The order also said the administration could not issue, implement, or enforce terminations or stop-work orders for any foreign assistance that existed prior to Jan. 19. What is still unclear is what will happen with the more than 800 contracts that were terminated in recent days.
“This ruling is a vital first step toward restoring U.S. foreign assistance programs,” said Elisha Dunn-Georgiou, president of the
Global Health Council, in a statement. “It clears the path for organizations to resume their life saving work, showcasing the best of American values: compassion, leadership, and a commitment to global health, stability, and shared prosperity.”
Plaintiffs did not get everything they sought. They had also asked the court to put a stop to the 90-day foreign aid review and pause of new funding ordered by U.S. President Donald Trump, but the judge rejected the request.
The court did not find it “appropriate or necessary” to stop the president from implementing the executive order to conduct a 90-day review or limit the administration’s policy decisions.
Essentially the judge decided that while the president could order the review, the administration could not stop work and freeze funding for all existing programs that already had money obligated to them.
The judge made a point in the order to specify that this does not prevent the government from enforcing the terms of individual contracts with respect to modifications and terminations pursuant to the contracts’ provisions.
To get a temporary restraining order, the plaintiffs had to show they would likely succeed on the merits of the lawsuit and would likely suffer irreparable harm without the court’s swift action.
The court found that the financial and business harm to the plaintiffs — as well as the food and medicine that people around the world are being deprived of as a result of the stop-work orders — can be considered irreparable harm.
The implementers in this case argued that a blanket suspension of congressionally appropriated funds caused them immense financial harm by forcing them to cut staff and reduce operations — and threatening their existence.
While the government pointed to the process in place for obtaining a waiver from the stop-work order, the court found that harm had taken place and would likely continue even with the waiver process, which plaintiffs said had not meaningfully improved the situation because information about waivers was often unavailable. Even when waivers are approved, they said, no funds could be disbursed.
The urgency of the action was driven in part because several of the plaintiffs received terminations or stop-work orders in the days since filing the lawsuits earlier this week. The government filed a document with the court listing more than 200 programs that were terminated Tuesday and Wednesday, which it admitted was likely incomplete.
“Absent temporary injunctive relief, therefore, the scale of the enormous harm that has already occurred will almost certainly increase. Plaintiffs have made a strong preliminary showing of irreparable harm,” the order says.
The parties in the case will meet Friday to file a status report and propose a preliminary schedule for the next phase in the case. The government is also required to file a report by Feb. 18 telling the court about the status of its compliance with the order.