Federal judge orders Trump administration to release foreign aid funds after failure to comply with court order

In a new setback for President Donald Trump's administration, federal Judge Amir Ali, an appointee of former President Joe Biden, on Tuesday ordered the White House to distribute millions of dollars to several nonprofit groups after finding that the government violated the terms of a temporary restraining order issued two weeks ago.

The decision comes amid a legal dispute over the freeze on foreign aid funds, a measure prompted by an executive order signed by Trump on Jan. 20, just beginning his second term.

The executive order in question provided for a 90-day suspension of all foreign financial assistance, affecting these organizations.

However, on Feb. 13, Judge Ali had issued a temporary restraining order requiring the administration to lift that freeze and guarantee payment to the groups for work done before the presidential measure went into effect.

According to Tuesday's ruling, the Trump administration not only ignored this directive, but failed to present evidence that it had taken steps to comply with it.

A tense hearing

During a two-hour hearing on Tuesday, Judge Ali sharply criticized the Department of Justice (DOJ) lawyers representing the Trump Administration. The magistrate expressed frustration at the government's inability to demonstrate that it had unfrozen the funds, despite the fact that 12 days have passed since the issuance of the temporary restraining order.

“Plaintiffs submitted evidence that defendants have not lifted the suspension or freeze of funds as the [temporary restraining order] required. Defendants have not rebutted that evidence, and when asked today, defendants were not able to provide any specific examples of unfreezing funds pursuant to the Court's TRO," Ali said after the session.

The most salient exchange occurred when the judge questioned DOJ attorney Indraneel Sur about compliance with the order. Ali asked directly whether steps had been taken to release the frozen funds by Feb. 13. Sur, responded, "I'm not in a position to answer that," to which Ali replied incredulously, “we're 12 days in and you're here representing the government...and you can't answer me whether any funds that you've kind of acknowledged or covered by the court's order have been unfrozen?”

Sur claimed that "the preparations are underway for the joint status report on compliance,” a response that failed to satisfy the judge.

At another point in the hearing, DOJ counsel argued that the administration was protected by "sovereign immunity" and should not be forced to repay the money. Ali, however, dismissed this reasoning and called the terms of his order "clear as day," emphasizing that the hearing was not an opportunity to reopen the debate over the validity of the order, but to ensure compliance.

The plaintiffs' argument

The nonprofits, represented in the case, argued that the Trump Administration's inaction amounted to a direct defiance of judicial authority. "What the court's colloquy with the government has revealed is that the government has done nothing to make the flow of payments happen” one of the plaintiffs' attorneys noted during the hearing. “As far as we are aware, there's been zero directives from the agency with respect to the unfreezing of funds.”

At these organizations work with the US Agency for International Development (USAID), an agency Trump plans to shut down.

A time-bound order

As a result of the hearing, Judge Ali signed a new order to enforce the Feb. 13 temporary restraint, requiring the Trump Administration to release the funds owed to the nonprofit groups by 11:59 p.m. on Wednesday, Feb. 26, 2025.

This decision marks the second judicial blow against the White House's efforts to restructure and dismantle USAID.