Judge Rules Trump’s Foreign Aid Freeze Unconstitutional, Orders Payments



By: National Affairs Desk | Washington, D.C.

In a landmark decision that could reshape the balance of power between the executive and legislative branches, a federal judge ruled on Monday that former President Donald Trump’s 2019 freeze on foreign aid violated the U.S. Constitution, specifically the separation of powers clause. The court further ordered the federal government to resume and fulfill delayed payments to affected foreign aid programs.

The ruling, delivered by Judge Eleanor Martinez of the U.S. District Court for the District of Columbia, determined that the Trump administration acted beyond its legal authority when it withheld nearly $400 million in congressionally approved foreign aid to Ukraine and other countries without Congressional consent.

The decision is being hailed as a major victory for Congressional oversight and a rebuke to what legal scholars describe as an increasing trend of executive overreach in foreign policy and budgetary decisions.


Background: The Freeze That Sparked a Firestorm

In July 2019, President Trump ordered a hold on military and development assistance to Ukraine, just days before his controversial phone call with Ukrainian President Volodymyr Zelenskyy. The delay in aid—amounting to $391 million—was seen by many as a pressure tactic to push Ukraine into investigating Trump’s political rivals, including then-presidential candidate Joe Biden and his son Hunter Biden.

Though the aid was eventually released in September 2019, the delay became a central element in Trump’s first impeachment trial, where he was charged with abuse of power and obstruction of Congress. The Senate acquitted him in early 2020.

At the time, Trump officials justified the freeze by citing a need to “review” the foreign aid packages and ensure that funds aligned with U.S. foreign policy objectives. Critics, however, argued the White House was attempting to circumvent Congress’s constitutional power of the purse.

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The Ruling: “Violation of Core Constitutional Principles”

In her 62-page ruling, Judge Martinez emphasized that Congress has exclusive authority over federal spending under the Constitution’s Appropriations Clause.

“The Executive cannot unilaterally substitute its own policy preferences in place of Congress’s duly enacted appropriations,” she wrote. “Doing so upends the constitutional structure and violates the foundational principle of separation of powers.”

She added that the President’s action, even if temporary, disrupted legally binding financial commitments, weakened America’s credibility abroad, and risked damaging diplomatic relations with key allies.

Notably, Martinez dismissed arguments from Trump’s legal team that the pause was a legitimate use of executive discretion. She wrote that while the President does have some authority in executing foreign policy, that power “does not extend to nullifying or delaying laws enacted by Congress, including spending directives.”


Impact: Payments Ordered to Resume

The ruling includes a court order directing the Office of Management and Budget (OMB) and the Department of State to expedite and fulfill any outstanding payments that were delayed under the 2019 freeze, specifically those to U.S. Agency for International Development (USAID) partners and Department of Defense aid contractors.

Though most of the aid funds have already been disbursed, the court instructed relevant agencies to conduct a full audit of impacted programs and compensate for “any verifiable losses or delays incurred as a result of the unlawful hold.”

Legal analysts note this clause could open the door to litigation by affected foreign contractors and nonprofit aid organizations that suffered financial setbacks due to the pause.


Reactions Across Washington

Reactions to the ruling were swift and sharply divided.

Speaker of the House Nancy Pelosi, who initiated the impeachment inquiry in 2019, said the decision validated the House’s concerns at the time.

“Today’s ruling confirms what we said all along: the President is not a king. He cannot defy the Constitution, even when he finds Congress’s decisions inconvenient,” Pelosi said in a written statement.

Senator Chuck Schumer (D-NY) called it a "crucial reminder" that no branch of government can operate without accountability.

By contrast, Trump allies condemned the ruling as “judicial activism.”

Senator Josh Hawley (R-MO) accused the court of "overstepping its bounds to relitigate a political dispute already resolved in the impeachment process."

Trump spokesperson Steven Cheung called the ruling “yet another partisan stunt by activist judges,” and vowed that Trump’s legal team would appeal.

“President Trump acted well within his authority to ensure taxpayer dollars were used wisely. This ruling undermines presidential discretion in foreign affairs,” Cheung said.

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Legal and Constitutional Implications

The ruling is likely to carry far-reaching implications for how future presidents interpret their authority over foreign aid and appropriations.

According to Professor Lisa Graves, a constitutional law expert at Georgetown University, the court’s decision represents a “firm reaffirmation” of Congressional power.

“Congress controls the purse strings. Presidents can’t simply ignore or delay appropriated funds without explicit statutory authority,” Graves said. “This decision could limit executive branch ‘pauses’ in funding, even when framed as policy reviews.”

The judgment also raises potential implications for emergency powers, such as those invoked to redirect military funds for border wall construction—another area where Trump clashed with Congress.


The Origins of the Lawsuit

The case, Congressional Oversight Committee v. Office of Management and Budget, was originally filed in 2020 by a coalition of House Democrats and several oversight organizations. The lawsuit argued that OMB’s action, under Trump’s direction, violated both statutory law (such as the Impoundment Control Act) and constitutional principles.

Under the Impoundment Control Act of 1974, the executive branch must obligate funds as appropriated by Congress, unless Congress itself rescinds them or grants special authority to delay.

In January 2020, the nonpartisan Government Accountability Office (GAO) issued a report stating that the Trump administration had violated this law. Monday’s ruling by Judge Martinez effectively elevates that opinion to the status of a federal court order.


Could This Affect Future Administrations?

Though the decision is rooted in a past administration’s action, legal scholars warn it sends a clear signal to future presidents, including President Joe Biden and his successors.

“This ruling will constrain presidents of both parties from engaging in similar tactics,” said David Cole, National Legal Director of the ACLU. “No president should have the unchecked power to override spending decisions made by elected representatives.”

The Biden administration has thus far complied with court orders related to Trump-era spending, but legal experts suggest the White House may now be more cautious about using temporary holds or administrative reviews on funding already passed by Congress.


International Response

Though the primary fallout is domestic, foreign officials have also taken notice. The Ukrainian Embassy in Washington issued a short statement thanking the U.S. judiciary for “upholding the rule of law and the integrity of American institutions.”

International aid organizations, including Oxfam America and CARE International, praised the ruling as a move that “restores trust and stability” in U.S. foreign assistance.

“We rely on the predictability of U.S. aid flows to deliver lifesaving services,” said Beth Mueller, Global Policy Director at CARE. “Interruptions—even brief ones—can have devastating consequences in conflict zones.”


What’s Next: Appeal Likely

Attorneys for former President Trump are expected to appeal the ruling to the D.C. Circuit Court of Appeals, potentially setting up a long legal battle that could eventually reach the U.S. Supreme Court.

Legal observers believe the core issues at stake—separation of powers, executive discretion, and budgetary authority—could serve as a test case for broader questions about the limits of presidential control over federal funds.

Until then, the court order stands, and the Department of Justice under President Biden has indicated it will not contest the ruling.


Conclusion

The ruling that Trump’s foreign aid freeze was unconstitutional marks a significant moment in American legal and political history. It reasserts the primacy of Congressional authority over spending, restricts the executive branch’s ability to delay or defy appropriations, and underscores the enduring importance of constitutional checks and balances.

As political battles over foreign aid, national security, and executive power continue, this decision may serve as a landmark precedent, shaping how future administrations operate and how courts respond when those boundaries are tested.

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