US Supreme Court order $2 bln US governemnt payout to USAID
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The Supreme Court ruling forces the US government to pay 2 billion dollars to USAID, something Trump attempted to avoid by signing an executive order freezing funds.
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The sign of the former U.S. Agency for International Development is seen at the former building in Washington, Thursday, Feb. 27, 2025 (AP)
The US Supreme Court has upheld a lower court's ruling that compels the US government to pay nearly $2 billion in USAID allocations on Wednesday, according to Justice Samuel Alito who opposed the decision.
Five Supreme Court Justice voted in favor of the ruling: John Roberts, Elena Kagan, Amy Coney Barrett, Ketanji Brown Jackson, and Sonia Sotomayor, meanwhile, the four Justices Clarence Thomas, Neil Gorsuch, Brett Kavanaugh, and Samuel Alito dissented.
Judge Alito said in his dissent, "Does a single district-court judge who likely lacks jurisdiction have the unchecked power to compel the Government of the United States to pay out (and probably lose forever) 2 billion taxpayer dollars? The answer to that question should be an emphatic 'No,' but a majority of this Court apparently thinks otherwise. I am stunned."
This comes amid Trump's crackdown on USAID, an effort led by Elon Musk, who heads Trump's Department of Government Efficiency, terminating thousands of contracts, grants, and awards, cutting the agency's funding by over 90%.
USAID sees mass layoffs
The Trump administration officially initiated mass layoffs at the US Agency for International Development (USAID), targeting approximately 1,600 USAID personnel, according to a statement by the agency published on February 23.
"All USAID direct hire personnel, with the exception of designated personnel responsible for mission-critical functions, core leadership and/or specially designated programs, will be placed on administrative leave globally," the statement adds.
The foreign aid agency told employees that they had 15 minutes to collect their personal belongings on February 27 and 28 from USAID's main headquarters in the Ronald Reagan Office in Washington DC.
Trump's shutdown of USAID did not only affect the United States; on January 28, the crackdown suspended the delivery of lifesaving HIV, malaria, and tuberculosis medicines as well as medical supplies for newborns in countries supported by the agency.
Multiple sources revealed that contractors and organizations working with USAID were instructed to cease operations immediately, including Chemonics, a prominent consulting firm that helps distribute essential medicines globally, as the memo applies to programs supporting HIV treatment, maternal and child health, malaria prevention, and contraception.
