The Supreme Court ruled in favor of the Trump administration on Friday, allowing it to freeze over $4 billion in foreign aid through a legal mechanism known as a “pocket rescission.” In a 6–3 decision, the justices overturned a lower court ruling that had ordered the release of the funds. The administration hailed the ruling as a victory for executive authority in shaping foreign policy.

The funds in question were part of foreign aid previously approved by Congress. They included more than $3.2 billion allocated to USAID programs, $322 million to the Democracy Fund, and over $500 million to international organizations. President Trump submitted the rescission proposal close to the end of the fiscal year, allowing the freeze to take effect automatically without waiting for congressional approval.

The lawsuit challenging the freeze was brought by several nonprofit organizations, including global health and advocacy groups, which argued the action violated the Impoundment Control Act. A lower court previously agreed, ruling that only Congress has the authority to rescind previously appropriated funds. However, the Supreme Court sided with the administration, citing the importance of executive control over foreign affairs.

The court’s ruling does not fully resolve whether a president can unilaterally impound funds but permits the temporary freeze to remain in effect while legal challenges proceed. Justices Kagan, Sotomayor, and Jackson dissented, raising concerns about executive overreach.

In a related development, the Supreme Court also agreed to hear a separate case concerning the president’s authority to remove Federal Trade Commission members without cause. The outcome could significantly impact the balance between presidential power and agency independence.

That case, scheduled for arguments in December, will address whether statutory protections shielding commissioners from removal violate constitutional principles and whether courts can intervene to stop such dismissals during ongoing legal disputes.