Overview

• The order extends a stay of a district court ruling that required the administration to obligate the funds by Sept. 30, leaving roughly $4–$5 billion at risk of expiring unused.
• U.S. District Judge Amir Ali had found the late‑year “pocket rescission” likely unlawful and directed spending before the fiscal deadline, a move the D.C. Circuit declined to keep in place on an interim basis before the Supreme Court stepped in.
• The court said the government made a sufficient showing that the suing aid groups may be barred under the Impoundment Control Act and that asserted harms to foreign affairs outweigh potential harms to the plaintiffs.
• Justices Elena Kagan, Sonia Sotomayor and Ketanji Brown Jackson dissented, warning the decision effectively prevents the funds from reaching intended recipients because they will expire at the end of the fiscal year.
• The administration told courts it plans to obligate another $6.5 billion by Sept. 30, while defending the rarely used pocket rescission tactic that the Government Accountability Office has labeled illegal.