The U.S. Supreme Court on Wednesday ruled 5-4 against Donald Trump’s attempt to freeze $2 billion in foreign aid payments, marking the court’s first major ruling on a legal challenge involving the former president.

The decision upholds a lower court ruling requiring the Trump administration to honor contracts that have already been completed, particularly those involving the U.S. Agency for International Development (USAID) and the State Department.

Chief Justice John Roberts and Justice Amy Coney Barrett, a Trump appointee, sided with the court’s three liberal justices, forming the majority. Meanwhile, Justice Samuel Alito led the dissenting opinion, joined by three other conservative justices.

In his dissent, Justice Alito criticized the ruling, questioning whether a single district judge should have the power to compel the U.S. government to distribute $2 billion in taxpayer funds.

“The answer to that question should be an emphatic ‘No,’ but a majority of this Court apparently thinks otherwise. I am stunned,” Alito wrote.

The case stems from a temporary restraining order issued last month by District Judge Amir Ali, a Biden appointee, which barred the Trump administration from halting foreign aid payments.

Trump and Musk Target Foreign Aid

Trump, with support from billionaire Elon Musk, has pushed efforts to downsize or dismantle large portions of the U.S. government, focusing particularly on USAID, which manages humanitarian and emergency aid across 120 countries.

Trump has accused USAID of being run by “radical lunatics,” while Musk described it as a “criminal organization” that should be “put through the woodchipper.”

With this ruling, the Trump administration is now required to proceed with the $2 billion in aid payments, though further legal battles over U.S. foreign assistance may still unfold.