Foreign Aid Freeze and Fallout: Legal Battle Over U.S. Aid Payments

The Trump administration faces a legal challenge after falling behind nearly $671 million in payments to foreign aid organizations, prompting lawsuits. Despite a court order, the government struggles to process payments quickly due to an internal review. Criticism mounts over the administration's handling of contracts and the USAID's partial shutdown.


Devdiscourse News Desk | Updated: 21-03-2025 03:09 IST | Created: 21-03-2025 03:09 IST
Foreign Aid Freeze and Fallout: Legal Battle Over U.S. Aid Payments
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The Trump administration is currently embroiled in legal action for failing to meet court deadlines for paying foreign aid organizations. The government was supposed to pay out nearly $671 million by March 10 but has yet to fulfill this obligation, sparking a lawsuit from affected parties.

Lauren Bateman, representing two nonprofit plaintiffs, criticized the administration for ignoring court orders. Allegations suggest that the Trump administration is deliberately defying directives from U.S. District Judge Amir Ali, who mandated swift processing of these payments.

The Justice Department cited logistical challenges due to administrative reviews as a reason for the delay. Meanwhile, a separate court case challenges the freeze and subsequent cutbacks on foreign aid initiated by the Trump administration, labeling them unconstitutional.

(With inputs from agencies.)

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