The Supreme Court upheld a federal judge’s power to order the Trump administration to pay $2 billion to USAID contractors but did not require immediate payment. The Justice Department had filed an emergency application after Judge Amir Ali demanded the funds be unfrozen, but the court rejected it in a 5-4 vote. The case is proceeding in the district court, with Ali being asked to clarify the government’s obligations. The contractors have not been paid, affecting projects in countries like Ukraine, Nigeria, and Kenya. The Trump administration’s abrupt downsizing of USAID led to lawsuits from contractors who were left out of pocket for work already completed. Ali had issued a temporary restraining order blocking part of a Trump executive order requiring a re-evaluation of foreign aid funding. The administration appealed when Ali ordered immediate payments for completed contracts. Plaintiffs argued that contractors were being forced to lay off workers and facing legal issues due to nonpayment. The Supreme Court declined to intervene at this early stage in the litigation, indicating that the case should proceed in the district court. The government is committed to paying legitimate claims but argued that Ali did not have the authority to order specific payments. The situation has left contractors and foreign aid workers in a difficult position, with payments being urgently needed to avoid further negative consequences.
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