A federal appeals court has allowed the Trump administration to continue withholding billions in foreign aid funding already allocated by Congress. The case revolved around President Trump's use of impoundment—the authority to delay or block spending. Aid groups had argued that power has strict legal limits, the New York Times reports. But in a 2-1 decision, an appeals panel said that only the Government Accountability Office, not the nonprofits dependent on the funds, had the standing to challenge these freezes under the Impoundment Control Act of 1974.
Wednesday's ruling on procedural grounds rather than constitutionality, per ABC News, from the US Court of Appeals for the DC Circuit overturns a lower court order that forced the administration to disburse funds set aside for global health and HIV/AIDS programs. With this new decision, the White House gains broader leeway to curtail or eliminate foreign aid programs unless the GAO, which so far has opted not to sue, chooses to intervene. That could result in billions in foreign aid being cut this year. The administration's withholding of funds has drawn criticism from the GAO, which found several instances in which Trump officials improperly held back money earmarked by Congress. Yet the watchdog has treated legal action as a last resort, letting private lawsuits play out.
The majority opinion, written by Judge Karen Henderson, maintained that grantees cannot make constitutional claims simply by citing separation of powers concerns, per the Times. In dissent, Judge Florence Pan argued courts should not be sidelined when presidents appear to bypass Congress on appropriations. The president of the Global Health Council, lead plaintiff on the suit, called the ruling disappointing, per Politico. "We are committed to standing alongside our fellow plaintiffs in this case and advocating for a resolution that ensures the continued impact of our collective work," Elisha Dunn-Georgiou said.
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