WASHINGTON – The U.S. Supreme court has authorized a $3.4 billion reduction in previously allocated foreign aid, a decision reached Friday, September 26, 2025, following a legal challenge to the Biden administration’s spending plans. the ruling allows the administration to proceed with rescinding funds earmarked for various international programs, impacting global health initiatives, economic assistance, and security cooperation.
The court’s action stems from a dispute over the administration’s authority to repurpose funds appropriated by Congress. Republican lawmakers had argued the white House overstepped its bounds by shifting money intended for specific domestic programs to foreign aid projects. This decision arrives as the administration seeks continued funding for Ukraine and other international priorities, creating further political friction.The cuts will disproportionately affect programs in the Middle East, Africa, and Asia, potentially destabilizing regions already facing notable challenges.
The funds in question were originally allocated through supplemental appropriations bills passed in 2023 and 2024. The Biden administration had sought to redirect these funds to address urgent global needs, including humanitarian crises and support for Ukraine’s defense against Russian aggression. Though, a coalition of Republican-led states filed suit, arguing the administration lacked the constitutional authority to unilaterally alter congressional spending directives.
The Supreme Court’s decision, delivered in a 6-3 ruling, upheld the states’ arguments, finding the administration’s actions constituted an improper expansion of executive power.Justice Alito, writing for the majority, stated the administration “cannot circumvent the clear intent of Congress” by reallocating funds without explicit legislative authorization.
The State Department has indicated it is reviewing the ruling and assessing the impact on ongoing programs. Officials have warned the cuts will necessitate challenging choices and could lead to the suspension or scaling back of critical assistance initiatives. The administration is expected to work with Congress to identify option funding sources, but the path forward remains uncertain amid ongoing partisan divisions.
