On Wednesday, the Supreme Court ruled that the Trump administration must pay $2 billion to contractors working for the U.S. Agency for International Development (USAID).
The court, in a 5-4 decision, rejected an emergency request from the Justice Department after U.S. District Judge Amir Ali had ordered the government to release funds that were frozen by President Donald Trump through an executive order. However, the court did not require immediate payment.
The court delayed further action for a week, meaning the contractors have not been paid yet.
In a brief, unsigned order, the court noted that Judge Ali’s deadline for payment had already passed. The case will continue in district court, and more decisions are expected. A hearing is set for Thursday.
The court also stated that Ali “should clarify what obligations the government must fulfill” to follow the temporary restraining order issued on February 13. It also suggested Ali consider “the feasibility of any compliance deadlines.”
Four conservative justices disagreed with the court’s decision. Justice Samuel Alito, in a written dissent, expressed his surprise, saying he was “stunned” by the ruling.
Justices Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh also dissented.
The government had argued that it couldn’t meet Ali’s earlier order to pay the $2 billion by last Wednesday. The payments were tied to several international projects, such as water system upgrades in Nigeria, medical supplies in Vietnam and Nepal, and malaria prevention in Africa.
Meanwhile, the administration has been reviewing USAID’s spending and recently decided to cut thousands of programs, amounting to as much as $60 billion. These cuts are also being challenged, but were not part of this Supreme Court case.
Last week, Chief Justice John Roberts issued a temporary hold on Judge Ali’s ruling while the Supreme Court considered its next steps.
The lawsuit was filed by businesses and nonprofits that receive USAID funding to provide aid around the world. USAID workers also filed a separate lawsuit.
When Trump took office, he and his ally Elon Musk pushed to reduce the size of the federal government, and USAID became one of the main targets. Last Thursday, workers who lost their jobs at USAID were clearing out their desks, while supporters gathered outside.
However, the contractors claim they have been left unpaid for work they’ve already completed. They argue that the government did not follow proper procedures under a law called the Administrative Procedure Act.
Judge Ali’s temporary restraining order blocked part of Trump’s executive order, which called for a review of foreign aid. Ali ruled that the executive order couldn’t justify cutting all foreign aid, though it allowed for case-by-case reviews.
Two weeks later, Ali ordered the government to make immediate payments for certain completed contracts, which led to the administration’s appeal.
In the government’s filing, Acting Solicitor General Sarah Harris stated that while the government agrees it should pay for legitimate work, Ali did not have the authority to force specific payments.
The contractors, however, argue that the payments are urgently needed. Some contractors have had to lay off workers, and those working overseas, including in Ukraine and Nigeria, are facing serious risks due to unpaid bills.
Lawyers for the contractors told the Supreme Court that one organization had to lay off 110 workers last week, while another could face legal trouble for failing to pay severance. They also argued that the Supreme Court should not intervene at this early stage of the case, especially since the government has ignored the temporary restraining order for nearly two weeks.
