A federal appeals court has ruled 2-1 that the Trump administration is not obligated to continue foreign aid payments.
The decision lifts a lower court's injunction that had required the State Department to release billions in Congressionally approved funding to foreign contractors.
The Trump administration can cut potentially billions of dollars in foreign assistance funds approved by Congress for this year, a US appeals court ruled https://t.co/vQi06AjFUO
— Bloomberg (@business) August 13, 2025
The ruling marks a major legal win for President Trump’s effort to cut foreign assistance.
Earlier this year, the Supreme Court had declined to overturn District Judge Amir Ali’s order, but the appellate panel’s decision now clears the path for the cuts.