President Donald Trump scored a legal victory on Wednesday as a federal appeals court lifted an injunction requiring the U.S. State Department to continue making foreign aid payments.

In a 2-1 ruling, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit found that a lower court had erred in ordering the Trump administration to restore foreign assistance funds previously approved by Congress. The decision effectively allows Trump’s administration to maintain a pause on aid programs.

Trump had imposed a 90-day freeze on all foreign aid on January 20, the day of his second inauguration, accompanied by efforts to reduce the size and independence of USAID, the primary U.S. foreign aid agency.

Measures included placing many staff on leave and exploring the integration of USAID into the State Department.

Two nonprofit organizations, the AIDS Vaccine Advocacy Coalition and Journalism Development Network, challenged the freeze, arguing it was unlawful and seeking nearly $2 billion in unpaid aid for humanitarian partners worldwide. U.S. District Judge Amir Ali, a Biden appointee, initially ruled in their favor.

Circuit Judge Karen Henderson, writing for the majority alongside Trump appointee Gregory Katsas, ruled that the nonprofits “lack a cause of action to press their claims” and therefore did not meet the requirements for an injunction.

Henderson noted that the court was not addressing whether the freeze violated the Constitution or infringed on Congress’s spending authority.

In dissent, Biden appointee Circuit Judge Florence Pan criticized the ruling, warning that it allows the executive branch to sidestep federal law and the Constitution’s separation of powers.

“The court’s acquiescence in and facilitation of the Executive’s unlawful behavior derails the carefully crafted system of checked and balanced power that serves as the greatest security against tyranny,” Pan wrote.

The ruling marks a significant judicial win for Trump, reinforcing executive discretion over foreign aid, while raising ongoing questions about the limits of presidential authority and congressional oversight.