Trump paused all foreign aid on January 20, his second inauguration day, and moved to restructure USAID under the State Department|USDA|CC BY 2.0

A federal appeals court ruled 2-1 on Wednesday that President Donald Trump can continue freezing or terminating billions in foreign aid, reversing a lower court’s injunction. 

The court said international aid groups lacked legal standing to sue.

The frozen funds include nearly $4 billion for global health programs through September and more than $6 billion for HIV and AIDS programs through 2028.

Trump has called such spending “wasteful” and dismantled the US Agency for International Development (USAID), which oversaw $30 billion annually in global health and development aid. 

The President paused all foreign aid on January 20 and moved to restructure USAID under the State Department.

The ruling did not address whether halting funds appropriated by Congress is constitutional.

One judge dissented, calling the decision “startling.” Aid groups condemned the move and vowed to appeal, warning that it undermines Congress’s role in federal spending decisions.