US appeals court says Trump can slash billions in owed USAID funds

The decision is a victory for President Donald Trump, who moved to dismantle USAID and other foreign spending almost immediately after he was sworn in to his second White House term.

An American flag and USAID flag fly outside the USAID building in Washington, D.C., on Feb. 1, 2025. (REUTERS/Annabelle Gordon)

The plaintiffs, she said, "may not bring a freestanding constitutional claim if the underlying alleged violation and claimed authority are statutory." She was joined in the majority opinion by Judge Greg Katsas, a Trump appointee.

"Nor do the grantees have a cause of action under the APA because APA review is precluded by the Impoundment Control Act (ICA)," she added. 

"And the grantees may not reframe this fundamentally statutory dispute as an ultra vires claim either. Instead, the Comptroller General may bring suit as authorized by the ICA." 

The decision is a victory for Trump, who moved to dismantle USAID and other foreign spending almost immediately after he was sworn in to his second White House term. 

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That decision sparked the ire of foreign aid groups and other recipients of the assistance, who quickly sued over the frozen payments, and argued that the quick dismantling of them risked "immediate and irreparable harm."

This is a breaking news story. Check back for updates.

Breanne Deppisch is a national politics reporter for Fox News Digital covering the Trump administration, with a focus on the Justice Department, FBI, and other national news. 

https://www.foxnews.com/politics/us-appeals-court-says-trump-can-slash-billions-owed-usaid-funds