The Trump administration announced the termination of nearly 10,000 contracts and grants from the U.S. Agency for International Development and State Department, including programs combating H.I.V. This decision comes amid a legal dispute over a federal judge’s order to resume foreign aid funding that was frozen at President Trump’s inauguration. Despite the judge’s directive for agencies to disburse funds by a set deadline, the administration indicated it could not comply, leading to claims of delays in releasing aid. Lawyers for the administration argued they conducted a thorough review, while critics highlighted the resulting harm to aid programs and vulnerable populations.
Attorneys representing the Trump administration announced on Wednesday that they are terminating almost 10,000 contracts and grants from the U.S. Agency for International Development and the State Department, including initiatives aimed at combating H.I.V. that had previously been exempt from a freeze on foreign aid.
This decision marks the administration’s latest effort to reduce U.S. expenditures abroad, coinciding with a federal judge’s recent directive that temporarily reinstated foreign aid that had been frozen since President Trump took office.
In a filing to the court on Wednesday, administration lawyers disclosed the cancellations and indicated that U.S.A.I.D. and the State Department would be unable to meet a deadline set by the judge for releasing funds for completed foreign aid projects.
Aid workers and U.S.A.I.D. officials reported that funding for components of the President’s Emergency Plan for AIDS Relief, or PEPFAR, has been cut, including parts of the program that were previously considered vital and exempt from the aid freeze.
These details came about in a status report regarding the government’s adherence to a Feb. 13 order from Judge Amir H. Ali of the Federal District Court for the District of Columbia, which required the government to distribute funds already promised to foreign aid contractors and grant recipients worldwide, asserting that U.S.-funded programs save lives and bolster America’s global standing.
President Trump and senior U.S. officials claim that foreign aid, which comprises about 1 percent of the federal budget, has become wasteful and disconnected from national interests.
These developments reflect the ongoing conflict between the Trump administration and the judicial system, with officials asserting their intention to comply with court orders while simultaneously seeking alternative approaches.
After Mr. Trump directed agencies in January to halt nearly all foreign aid spending for 90 days to review projects, aid organizations filed lawsuits, arguing that this suspension endangered their missions and the lives of millions relying on decades of U.S.-funded programs.
On Feb. 13, Judge Ali mandated agencies to release funds for any “contracts, grants, cooperative agreements, loans or other federal foreign assistance awards that existed as of Jan. 19,” the day prior to Mr. Trump’s inauguration.
However, multiple organizations, including those involved in the lawsuit, reported that their funding had not been restored. During the hearing on Tuesday, attorneys informed Judge Ali that the most plausible explanation was that the government had failed to lift the blanket hold on foreign aid.
The administration contended in its filing that it had complied with the court’s requirements by conducting a prompt and thorough review and determining that nearly all grants and contracts would be canceled.
“U.S.A.I.D. is working on termination notifications, aiming for substantial completion within the next 24 to 48 hours,” the report stated. “Consequently, no U.S.A.I.D. or State obligations remain in a suspended state.”
The filing indicated that the government has identified approximately 3,200 contracts and grants it plans to retain and is “dedicated to fully proceeding with the remaining awards.”
Judge Ali repeatedly pressed the government’s attorney for clarification on whether any funds had been disbursed following his Feb. 13 directive. The attorney was unable to demonstrate that any aid money was being released, prompting Judge Ali to set a new deadline for the government to address any outstanding invoices or drawdown requests due before his original Feb. 13 order by midnight Thursday.
Pete Marocco, the leading Trump appointee overseeing foreign aid, noted that the delays were partly due to logistical challenges. He mentioned that the two agencies are facing nearly $2 billion in pending payment requests, which could not be resolved immediately.
“These payments cannot be made within the timeline set by the court and would instead require several weeks,” he stated in a document supporting the government’s request for extended time, submitted on Wednesday.
In their submissions, the groups challenging the Trump administration voiced numerous concerns about how the administration has handled the situation.
Among their points, lawyers asserted that Trump officials “have imposed additional review processes on all foreign assistance fund disbursements, necessitating detailed policy justifications for payments concerning previously approved past work.”
Lawyers referred to sworn statements from aid workers indicating that due to their inability to access funds as recently as Tuesday, they could not fulfill their responsibilities overseas, including distributing H.I.V. medications funded by U.S. aid.
Although the State Department issued a waiver for PEPFAR weeks ago to facilitate funding for those programs, statements filed on Wednesday indicated that invoices related to PEPFAR remain unpaid.
Documents presented in support of the suing groups detailed various adverse consequences.
“In my portfolio, this means that malnourished children will not receive essential therapeutic food, pregnant and breastfeeding women will not be screened for malnutrition, and refugee families will not receive vouchers to obtain food for their households,” one aid worker stated in a declaration.
It remains uncertain how the findings in the joint status report submitted on Wednesday will influence the progression of the lawsuit. Judge Ali’s temporary restraining order from Feb. 13, which requires the Trump administration to continue providing aid, is set to expire on Thursday.
With what they deemed an unrealistic timeframe to meet the payments set by the judge, government lawyers promptly appealed his deadline.
“We require additional time because reinstating funding for terminated or suspended agreements is not as straightforward as flipping a switch,” they noted in a filing on Tuesday.