A. M. A U.S. appeals court has ruled that President Donald Trump’s administration can withhold billions of dollars in foreign aid funds approved by Congress. The decision, issued by a 2-1 vote, overturned a previous ruling by a federal judge in Washington that found such action violated the principles of separation of powers established in the Constitution.
The ruling represents a victory for Trump’s policy of limiting funding for international programs his administration disapproved of and reducing the role of the United States Agency for International Development (USAID). The measure allows the executive branch to withhold funds previously authorized by the legislative branch, setting a precedent for the scope of presidential authority in managing the federal budget.
Judge Karen LeCraft Henderson, who wrote the majority opinion, argued that the plaintiffs—including nonprofits and businesses—lacked a strong legal basis to file a lawsuit. Henderson noted that only the U.S. Comptroller General, through a specific statute, could formally challenge garnishment decisions. In her opinion, the plaintiffs could not rely on independent constitutional claims or statutory provisions unrelated to the case.
The decision also featured support from Judge Greg Katsas, a Trump appointee, while Judge Florence Pan, nominated by President Joe Biden, issued a dissenting opinion. Pan warned that the ruling overlooked “the grave implications of this case for the rule of law and the very structure of our government,” emphasizing that the unilateral withholding of funds by the executive branch could undermine the balance of power.
The plaintiff organizations could still request that the full DC Circuit Court of Appeals reconsider the case. The ruling, however, leaves unresolved the fundamental question of the constitutionality of the president’s refusal to spend funds approved by Congress, keeping open a highly relevant debate for the relationship between the legislative and executive branches in the United States.
