The United States Supreme Court in a 5-4 decision rejected President Trump's administration's request, requiring it to make payments to foreign aid organizations for the work they have already performed for the government.
The court upheld an order by U.S. District Judge Amir Ali of Washington, D.C., that the administration immediately unblock funds for contractors and grants from the U.S. Agency for International Development (USAID) and the State Department for the work that had been done.
Chief Justice John Roberts and his conservative associate Amy Coney Barrett joined the court's three liberal members, forming the majority, in rejecting the Trump administration's request. Conservative members Samuel Alito, Clarence Thomas, Neil Gorsuch and Brett Kavanaugh were in favor of the administration's request.
The funds that need to be paid amount to about $2 billion and could take several weeks to be fully paid.
Six of the nine members of the Supreme Court are conservatives, and three of them were appointed by Mr. Trump during his first presidential term. Three members were appointed by Democratic presidents.
The court did not provide explanations regarding the arguments presented to support its decision.
Conservative Supreme Court member Alito, writing the minority opinion, expressed concern about the decision.
"How is it possible that a district judge, who likely does not have jurisdiction, has unlimited authority to compel the United States government to pay (and perhaps permanently lose) $2 billion in taxpayer money? The answer to that question should be a resounding 'No,' but the majority of this court apparently thinks otherwise ," Justice Alito wrote.
Republican President Trump, pursuing what he calls "America First," ordered a 90-day pause in all foreign aid on his first day back in office on January 20.
Aid organizations sued Mr. Trump, accusing him of exceeding his powers under federal laws and the Constitution, after his decision, they say, effectively dissolved an independent federal agency and canceled spending authorized by Congress.
Aid organisations said in a High Court submission on 28 February that they "would face extraordinary and irreversible harm if the funds continued to be frozen".
The work of these organizations "supports U.S. interests abroad and improves — and, in many cases, saves — the lives of millions of people around the globe, thereby preventing problems, such as disease and instability, from reaching the United States, advocates for foreign aid groups say.
President Trump's administration had kept the payments frozen, despite a temporary order from Judge Ali, appointed by former Democratic President Joe Biden, to unblock them and several subsequent orders for the administration to implement the initial order.
Mr. Trump and his adviser Elon Musk, the world's richest person, have taken dramatic steps to shrink and transform the federal government. They have dismantled several agencies, laid off thousands of employees, fired or reappointed hundreds of officials, and fired the heads of independent agencies, among other things.
As it takes steps to end American-supported humanitarian efforts in many countries, Mr. Trump's administration has sent funding cutoff notices to key organizations in the global aid community.
Aid groups have said the US withdrawal endangers the lives of millions of the world's most vulnerable people, including those facing deadly diseases and those living in conflict zones.