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US court says Trump administration can cut billions in foreign aid

August 14, 2025

The US appeals court has ruled that the Trump administration can halt foreign aid payments, reversing a lower court's judgment that would have required restoration of billions in congressionally approved funds. President Trump implemented a 90-day pause on foreign assistance upon returning to office in January, prompting a lawsuit from affected international aid groups. The funding cuts impact nearly $4 billion for global health programs through September and over $6 billion for HIV/AIDS programs previously approved through 2028.

Who is affected

  • International aid groups who relied on government grants
  • Recipients of global health programs worth nearly $4 billion
  • Beneficiaries of HIV and AIDS programs worth over $6 billion
  • The US Agency for International Development (USAID), which has been largely shuttered
  • Potentially millions of people worldwide, as researchers in the Lancet medical journal warn the cuts could cause more than 14 million additional deaths by 2030

What action is being taken

  • The Trump administration is continuing its 90-day pause on all foreign assistance
  • Funding for global health and HIV/AIDS programs is being cut
  • The US Agency for International Development (USAID) is being largely shuttered, with more than 80% of all agency programs already cancelled as of March
  • The State Department is taking over remaining USAID programs as the agency officially closed on July 1

Why it matters

  • Billions of dollars in foreign aid that was already approved by Congress is being halted
  • Former Presidents Bush and Obama have condemned the shutdown of USAID
  • Humanitarian organizations worldwide have criticized the funding cuts as "drastic and deadly"
  • Medical researchers published in the Lancet warn these cuts could result in over 14 million additional deaths by 2030
  • The court ruling establishes a precedent for executive authority to pause congressionally approved foreign aid

What's next

  • No explicit next steps stated in the article

Read full article from source: BBC