Supreme Court tells Trump to pay out $2 billion to USAID after rejecting his bid to axe agency

5 March 2025, 16:06

The Supreme Court has blocked Donald Trump’s attempts to withhold payments to foreign aid organisations.

President Trump shut down the $40 billion US Foreign Aid Agency (USAID) last month as part of his and Elon Musk’s bid to slash government spending.

Staff at the US Agency for International Development were told to stay away from the agency’s Washington headquarters after right-wing billionaire Elon Musk announced Donald Trump intended to axe the body.

But, handing a setback to Trump, the Supreme Court voted 5-4 to uphold Washington DC District Judge Amir Ali’s order that the Government must pay $1.5bn to foreign assistance groups.

Three liberal judges as well as conservatives, John Roberts and Amy Coney Barrett, broke ranks with the Government to block Trump’s attempts.

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Conservative Justices Samuel Alito, Clarence Thomas, Neil Gorsuch and Brett Kavanaugh voted against the motion.

Speaking for the dissenting judges, Samuel Alito wrote: “Today, the Court makes a most unfortunate misstep that rewards an act of judicial hubris and imposes a $2 billion penalty on American taxpayers.

“The District Court has made plain its frustration with the Government, and respondents raise serious concerns about nonpayment for completed work.

“But the relief ordered is, quite simply, too extreme a response. A federal court has many tools to address a party’s supposed nonfeasance. Self-aggrandizement of its jurisdiction is not one of them. I would chart a different path than the Court does today, so I must respectfully dissent.”

Announcing USAID would be axed last month, Musk said: "It became apparent that its not an apple with a worm it in.

"What we have is just a ball of worms. You've got to basically get rid of the whole thing. It's beyond repair.

"We're shutting it down."

Musk went on to confirm he had spoken to President Trump about the plan, writing: "With regard to the USAID stuff, I went over [it] with him in detail, and he agreed that we should shut it down.

"I checked with him a few times [and] said, 'Are you sure?'" he added.

USAID workers said they tracked 600 employees who reported being locked out of the agency's computer systems overnight.