Supreme Court Allows Trump to Withhold $4B Foreign Aid/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Supreme Court ruled that President Trump can withhold $4 billion in foreign aid approved by Congress, deepening a constitutional clash over spending powers. The decision, opposed by the three liberal justices, strengthens Trump’s leverage in looming shutdown negotiations. Litigation on executive impoundment authority is expected to continue.
Trump Foreign Aid Ruling Quick Looks
- Supreme Court ruling: Trump may withhold $4B in foreign aid
- Decision issued 5-3 with liberal justices dissenting
- Court signals foreign policy powers bolster Trump’s authority
- Ruling not final, but sets precedent for impoundment cases
- Case stems from Trump’s “pocket rescission” tactic near fiscal year-end
- Judge Amir Ali had ordered funds released; Trump appealed
- Justice Kagan dissent: Constitution gives spending power to Congress
- Shutdown talks complicated as Democrats push for spending guarantees
- Comptroller General could challenge — but hasn’t filed lawsuits
- Trump vowed in 2024 campaign to expand impoundment powers
Deep Look: Supreme Court Clears Trump to Withhold $4B in Foreign Aid, Escalating Clash With Congress
WASHINGTON — September 26, 2025
The Supreme Court handed President Donald Trump a significant victory Friday, ruling he may withhold $4 billion in foreign aid previously approved by Congress, intensifying a constitutional battle over the power of the purse and raising the stakes in ongoing government shutdown negotiations.
The decision, delivered in a short unsigned order on the emergency docket, gave Trump the green light to use his controversial “pocket rescission” tactic — delaying obligation of funds until the fiscal year ends, thereby ensuring they go unspent without Congress formally approving a rescission.
What the Ruling Means
The Court did not fully decide the constitutional issue of whether presidents can unilaterally impound congressionally approved funds, but its preliminary opinion found Trump’s administration had made a strong enough case that the foreign-aid groups challenging the move lacked legal standing.
The justices noted that Trump’s authority appeared stronger because the withheld money concerned foreign policy, a domain where presidents historically enjoy broad discretion.
The ruling effectively undercuts lawsuits brought by contractors and aid groups who sought restoration of the funds, though the issue could resurface as litigation continues.
Kagan and Liberal Justices Dissent
Justice Elena Kagan, joined by Justices Sonia Sotomayor and Ketanji Brown Jackson, sharply dissented, warning the decision undermines Congress’ constitutional spending power.
“That is just the price of living under a Constitution that gives Congress the power to make spending decisions,” Kagan wrote. “If those laws require obligation of the money, the Executive must comply.”
She also criticized the majority for granting Trump another victory through the Court’s emergency docket, bypassing full deliberation. This year alone, Trump has secured roughly 20 short-term wins through emergency orders.
“We will decide cases of far less import with far more process and reflection,” Kagan noted.
Shutdown Stakes
The ruling lands days before the Sept. 30 deadline to fund the government. Democrats fear that if Trump can unilaterally block funds, any budget deal could be hollow, as the administration could simply decline to spend appropriations.
Democratic leaders are now pressing for guarantees on spending execution as part of their demands to avoid a shutdown. Republicans, emboldened by the Court’s ruling, may resist such concessions.
Legal Background
The 1974 Impoundment Control Act was enacted after President Richard Nixon withheld funds Congress had appropriated, establishing procedures for rescissions. Trump’s team argued the law allows only the Comptroller General — head of the Government Accountability Office (GAO) — to enforce violations, not private groups.
The Court sided with that view “at this early stage.” However, Comptroller General Gene Dodaro has identified instances of illegal fund withholding but has not filed lawsuits. His 15-year term expires in December, and Trump will have influence over naming his successor.
Lower Court Decisions
Earlier this year, Judge Amir Ali, a Biden appointee, ruled against Trump’s foreign-aid freeze, ordering the administration to prepare to distribute the $4B. Solicitor General D. John Sauer then filed an emergency appeal, warning that enforcing the order would force executive officials into foreign negotiations to spend money Congress had appropriated.
Looking Ahead
While the Supreme Court’s ruling is not final, it represents the strongest endorsement yet of Trump’s expansive view of executive spending powers. The Court’s conservative majority has repeatedly backed Trump in novel disputes, leaving Democrats scrambling to respond legislatively or politically.
As shutdown deadlines loom and foreign-aid partners await funding decisions, the unresolved impoundment fight may define the balance of power between Congress and the presidency for years to come.
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