Trump foreign aid block stopped again as billions set to expire

Trump foreign aid block stopped again as billions set to expire

President Donald Trump's attempt to block $5 billion in foreign aid has been temporarily halted by a federal appeals court, as the funds are set to expire on September 30. The ruling by the U.S. Court of Appeals for the DC Circuit allows the funds to continue until Congress takes action, potentially averting a financial crisis for international aid programs [3].

The Trump administration had previously notified Congress of its intention to cancel the funds using a rare "pocket rescission" authority, which hasn't been utilized in nearly 50 years [1]. The administration argued that the funds were wasteful and violated its "America First" priorities, but the move was criticized by Democrats and some Republicans for being illegal [1, 2].

The appeals court's decision means that the funds will remain available until Congress decides how to address the rescission. This could lead to a high-stakes legal battle, as the administration maintains that it is on "firm legal ground" and will withstand challenges [1].

The White House has signaled that it prefers a "clean" stopgap funding measure, known as a continuing resolution, but Democrats have warned that the rescissions could complicate negotiations [1]. The government funding deadline looms, and if Congress does not approve new funding by September 30, large parts of the federal government could shut down [1].

The decision by the DC Circuit comes as the Trump administration has been embroiled in a legal battle over its efforts to block billions of dollars in foreign assistance approved by Congress. The administration has effectively shuttered USAID and dramatically scaled back assistance programs around the world [3].

The appeals court's ruling is a setback for the Trump administration, but it has vowed to continue its fight against what it sees as wasteful foreign aid spending. The case will return to a Washington judge, who previously ruled that the administration's refusal to spend money that Congress appropriated violated the Constitution's separation of powers principles [3].

References:
[1] CNN. (2025, August 29). Trump pocket rescission foreign aid Congress. Retrieved from https://www.cnn.com/2025/08/29/politics/trump-pocket-rescission-foreign-aid-congress
[2] Devex. (2025, August 29). Trump's $5 billion pocket rescission escalates foreign aid funding fight. Retrieved from https://www.devex.com/news/trump-s-5b-pocket-rescission-escalates-foreign-aid-funding-fight-110744
[3] Bloomberg. (2025, August 29). Appeals court keeps fight alive over Trump foreign aid freeze. Retrieved from https://www.bloomberg.com/news/articles/2025-08-29/appeals-court-keeps-fight-alive-over-trump-foreign-aid-freeze