Legal Action

A coalition of nonprofits sued the Trump-Vance administration, challenging their decision to suspend almost all funding and work related to foreign aid. Plaintiffs were recipients of U.S. Agency for International Development (USAID) funding that was cut by President Trump’s Executive Order 14169 titled “Reevaluating and Realigning United States Foreign Aid,” which indefinitely suspended all foreign aid. The plaintiffs argued that Executive Order 14169 violates the Constitution, as well as the Administrative Procedure Act, and they seek injunctive and declaratory relief.

On Mar. 10, 2025, a district court entered an order granting plaintiffs’ motion for preliminary injunction (PI). An appeal ensued, with the circuit court issuing an order vacating the PI’s impoundment provision on Aug. 13, 2025, and denying the appellants’ petition for rehearing en banc on Aug. 28, 2025. On Sept. 26, 2025, the Supreme Court granted appellants-defendants’ application for stay, allowing the government to impound $4 billion in funding subject to pocket rescission.