OAN Staff Katherine Mosack
5:41 PM – Wednesday, August 13, 2025
A federal appeals court has overturned a ruling from a lower court that blocked the Trump administration from implementing significant cuts to foreign aid.
The United States D.C. Circuit Court of Appeals’ 2-1 decision on Wednesday overrules a decision that would have prohibited Trump from making cuts to U.S. Agency for International Development (USAID) funding — though it had already been approved by Congress.
The majority opinion was written by Judge Karen Henderson and Judge Gregory Katsas. They ruled that the nonprofits suing the administration lacked standing under the Impoundment Control Act, as only the head of the Government Accountability Office has the authority to bring such a lawsuit.
“The district court erred in granting that relief because the grantees lack a cause of action to press their claims,” the majority wrote.
On the flip side, the dissenting opinion was issued by Judge Florence Pan, who was appointed by former Democrat President Joe Biden. In her remarks, she criticized the other judges, claiming that they were allowing the Trump administration to “disregard the Constitution’s separation of powers,” while also warning of executive overreach.
“The court’s acquiescence in and facilitation of the Executive’s unlawful behavior derails the carefully crafted system of checked and balanced power that serves as the greatest security against tyranny,” Pan wrote.
Soon after, a spokesperson for the Office of Management and Budget (OMB) wrote a statement celebrating the court’s decision.
“Today’s decision stops these private groups from maliciously interfering with the President’s ability to spend responsibly and administer foreign aid in a lawful manner and in alignment with his America First policies,” the spokesperson said.
Attorney General Pam Bondi also weighed in to express her support for the ruling.
“In a 2-1 ruling, the DC Circuit lifted an injunction ordering President Trump to spend hard-earned taxpayer dollars on wasteful foreign aid projects,” Bondi wrote. “We will continue to successfully protect core Presidential authorities from judicial overreach.”
What Happens Next:
The appeals court decision clears the way for the administration to continue implementing its planned reductions to foreign aid, including through USAID and other State Department programs. Programs previously blocked by the injunction can now be suspended, reduced, or canceled.
Additionally, grants and contracts that were previously halted or frozen may now be officially terminated.
Humanitarian organizations, nonprofits, or other affected parties could try to appeal to the U.S. Supreme Court, though it’s not guaranteed that the High Court will take the case.
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