A long-simmering constitutional dispute reached the Supreme Court, testing the limits of presidential authority over federal spending. The case began when former President Donald Trump used a “pocket rescission” to freeze more than $4 billion in foreign aid—a rarely used maneuver allowing presidents to cancel funds if Congress fails to act before the fiscal year ends. Trump targeted funds for USAID and international organizations, including groups that had challenged his administration in court. Legal experts viewed the move as a direct challenge to the Impoundment Control Act of 1974, which was enacted after Watergate to prevent presidents from unilaterally withholding appropriated funds.
A lower-court ruling by Judge Amit Mehta Ali, a Biden appointee, blocked Trump’s action, citing congressional supremacy over spending. However, the Supreme Court overturned that ruling in a 6-3 decision, siding with Trump and emphasizing the president’s constitutional authority in foreign affairs. The conservative majority argued that interfering with executive control of foreign policy would cause greater harm than allowing the funding freeze. Liberal justices dissented, warning that the decision weakens Congress and threatens democratic checks and balances. The ruling echoed broader concerns about expanding presidential power, a theme also present in Trump’s concurrent challenge to Federal Trade Commission independence.
The Court’s decision marked a pivotal victory for executive authority, reinforcing a pattern of conservative rulings that expand presidential discretion in both domestic and international arenas. Supporters hailed the move as restoring traditional presidential prerogatives, while critics warned it undermines Congress’s constitutional role. Beyond foreign aid, the precedent may encourage future presidents to test the boundaries of spending control. As the balance between the branches shifts, the ruling signals a new era of presidential power—one that could redefine how America governs and how democracy maintains its institutional limits