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US Supreme Court rejects Trump’s bid to avoid paying USAID contractors, beneficiaries

Justice Samuel Alito, leading the dissenting conservative justices, criticized the ruling, calling it a reward for “an act of judicial hubris” and arguing that it imposes a $2 billion burden on American taxpayers. Alito contended that Judge Ali lacked the authority to mandate such payments.

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The U.S. Supreme Court on Wednesday upheld a federal judge’s authority to order the Trump administration to pay $2 billion to contractors of the U.S. Agency for International Development (USAID) but stopped short of requiring immediate payment. The 5-4 decision rejected an emergency application filed by the Justice Department, which sought to block the order issued by U.S. District Judge Amir Ali.

Judge Ali had issued a series of rulings demanding the government release funds that President Donald Trump froze through an executive order targeting what he called wasteful foreign aid programs. While the Supreme Court’s decision is a temporary setback for the Trump administration, the nonprofit organizations and businesses awaiting payment remain in limbo. One organization recently laid off 110 employees due to the funding freeze, according to court documents.

Justice Samuel Alito, leading the dissenting conservative justices, criticized the ruling, calling it a reward for “an act of judicial hubris” and arguing that it imposes a $2 billion burden on American taxpayers. Alito contended that Judge Ali lacked the authority to mandate such payments.

The Supreme Court’s decision leaves in place Ali’s temporary restraining order, which had paused the spending freeze. Judge Ali is scheduled to hold a hearing on Thursday to consider a more permanent solution.

The majority opinion, supported by Chief Justice John Roberts and Justice Amy Coney Barrett alongside the court’s three liberal justices, noted that the Trump administration had not challenged Ali’s initial order but only the deadline for compliance, which has already passed. The court instructed Ali to clarify the government’s obligations under the temporary restraining order, taking into account the feasibility of compliance timelines.

Justices Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh joined Alito in dissent.

The Trump administration argued that the situation had evolved since the initial freeze, as it replaced the blanket spending halt with individualized assessments. These assessments led to the cancellation of 5,800 USAID contracts and 4,100 State Department grants, totaling nearly $60 billion in aid.

The funding freeze was implemented following an executive order by President Trump, who criticized foreign aid programs as wasteful and misaligned with his foreign policy objectives. The subsequent lawsuit alleged that the freeze violated federal law and disrupted critical, life-saving programs abroad.

Judge Ali initially ordered the temporary restoration of funding on February 13. However, after nearly two weeks of non-compliance, he set a deadline for the government to release payments for work already completed. The administration appealed, calling Ali’s order “incredibly intrusive and profoundly erroneous” and objecting to the timeline for releasing the funds.

The Supreme Court’s decision underscores the ongoing tension between the judiciary and the executive branch over the administration’s foreign aid policies. While the ruling affirms the judiciary’s role in overseeing executive actions, the delay in payment leaves contractors and aid organizations grappling with financial uncertainty.

As the legal battle continues, the fate of billions of dollars in foreign aid remains unresolved, with significant implications for global humanitarian efforts and U.S. foreign policy.

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Bangladesh president Shahabuddin accuses Yunus of conspiracy to unseat him

Bangladesh President Mohammed Shahabuddin has accused former chief adviser Muhammad Yunus of attempting to unseat him unconstitutionally and destabilise the country during the interim period.

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Days after the Tarique Rehman-led government assumed office in Bangladesh, President Mohammed Shahabuddin has levelled serious allegations against former chief adviser Muhammad Yunus, accusing him of attempting to remove him from office through unconstitutional means and destabilise Dhaka.

In an interview to a Bengali daily at Bangabhaban, the President claimed that during Yunus’s tenure, efforts were made to create a constitutional vacuum and disrupt the country’s stability.

Allegations of constitutional breach

Shahabuddin alleged that he was excluded from key state matters for nearly one and a half years. According to him, the former chief adviser did not maintain the constitutionally mandated communication with the President.

He claimed that Yunus undertook 14 to 15 foreign visits but did not brief him upon return or provide written updates, which he described as a constitutional obligation. The President also said he was not informed about major state decisions, including agreements signed with the United States ahead of elections.

Responding to questions about ordinances issued during the interim period, Shahabuddin noted that while some may have been necessary, there was little justification for promulgating as many as 133 ordinances.

‘Palace prisoner’ claim

The President further alleged that he was effectively reduced to a “palace prisoner” during the interim government. He said two of his proposed foreign visits — to Kosovo and Qatar — were blocked by the administration at the time.

He also referred to a purported attempt to replace him with a former chief justice through unconstitutional methods, claiming that the proposal was declined on constitutional grounds.

Recalling events of October 22, 2024, Shahabuddin described protests outside the presidential residence as a “terrifying night,” alleging that mobs were mobilised and attempts were made to storm the premises. He said the situation was brought under control following deployment of the military.

Support from armed forces and BNP

Shahabuddin stated that the chiefs of the three armed services assured him of their support, reiterating that he remained the supreme commander of the armed forces. He also credited the leadership of the Bangladesh Nationalist Party (BNP) for helping maintain constitutional continuity during the period of tension.

The allegations come amid political shifts in Bangladesh following the formation of the new government, adding a fresh dimension to the country’s evolving political landscape.

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India studying implications after US Supreme Court strikes down Trump’s global tariffs

India said it is studying the implications of a US Supreme Court ruling that struck down Donald Trump’s sweeping tariffs, even as a new 10% global duty has been announced under an alternate law.

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Donald Trump

India on Saturday said it is closely examining the implications of a recent ruling by the US Supreme Court that struck down former US President Donald Trump’s sweeping global tariffs.

In its initial response, the Commerce Ministry said it has taken note of both the court’s judgement and subsequent announcements made by the US administration.

“We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard,” the ministry said.

“Some steps have been announced by the US administration. We are studying all these developments for their implications,” it added.

What did the US Supreme Court rule?

On Friday, the conservative-majority court ruled 6–3 that a 1977 law relied upon by Trump to impose sudden tariffs on individual countries does not authorise the President to impose such sweeping duties.

The judgement marked a significant setback to Trump’s tariff policy, which had reshaped trade relations with several countries.

Responding to the ruling, Trump criticised members of the court, saying he was “ashamed” of certain justices and describing the verdict as disappointing.

Fresh tariffs under Section 122

Following the court’s decision, Trump announced new tariffs using Section 122 of the Trade Act of 1974. The provision allows the US President to impose temporary tariffs of up to 15 per cent for a maximum period of 150 days to address large and serious balance-of-payments deficits.

Under this route, a new 10 per cent global tariff has been imposed on imports into the United States. Trump said the revised order would be effective almost immediately.

US Treasury Secretary Scott Bessent, speaking at the Economic Club of Dallas, said the alternative mechanism would result in virtually unchanged tariff revenue in 2026.

Impact on India

Under the revised order, India faces a tariff rate of 10 per cent, reduced from the earlier 18 per cent under Trump’s broader tariff framework.

The new duty is scheduled to take effect from February 24 for a period of 150 days. Exemptions will continue for sectors subject to separate investigations, including pharmaceuticals, as well as goods entering the US under the US-Mexico-Canada Agreement framework.

India has not announced any retaliatory measures and has indicated that it is currently assessing the trade and economic implications of the US decisions.

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PM Modi meets Sri Lankan President Dissanayake at AI summit, reviews connectivity agenda

PM Modi and Sri Lankan President Anura Kumara Dissanayake reviewed connectivity, AI cooperation and regional stability during talks at the AI Impact Summit in New Delhi.

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PM Modi meet sri lanka president

Prime Minister Narendra Modi on Friday held talks with Sri Lankan President Anura Kumara Dissanayake on the sidelines of the AI Impact Summit in New Delhi, reviewing the progress of bilateral initiatives and reaffirming their commitment to deepening connectivity and development cooperation.

President Dissanayake was in India to attend the India-hosted AI Impact Summit. The visit marked his second trip to India since assuming office, following his State Visit in December 2024.

Focus on connectivity and development

According to the Ministry of External Affairs, the two leaders assessed developments stemming from recent high-level engagements, including Prime Minister Modi’s State Visit to Sri Lanka in April 2025. They emphasised fast-tracking cooperation across three key pillars — physical, digital and energy connectivity — which remain central to India-Sri Lanka relations.

Both sides reiterated that improved connectivity would not only enhance economic integration but also contribute to long-term stability and prosperity in the region.

AI collaboration and inclusive growth

Technology-driven development also featured prominently in the discussions. The leaders exchanged views on leveraging artificial intelligence for developmental purposes and improving service delivery.

They agreed that responsible deployment of AI can help advance inclusive growth, particularly in developing countries, and support public service systems.

India’s support during crisis

President Dissanayake expressed appreciation for India’s assistance following Cyclone Ditwah, which caused significant damage in Sri Lanka. India, acting as a First Responder, provided emergency relief supplies and supported search and rescue operations under ‘Operation Sagar Bandhu’.

The leaders also reviewed progress under India’s USD 450 million assistance package aimed at reconstruction and infrastructure restoration in Sri Lanka. The support is intended to aid long-term recovery and strengthen economic resilience.

Cultural ties and regional cooperation

Beyond economic and strategic matters, the meeting underscored the civilisational and cultural bonds between the two countries. The successful conclusion of the Exposition of the Holy Devnimori relics in Sri Lanka was welcomed as a step that further strengthened people-to-people connections.

Both leaders agreed to continue working closely to advance sustainable development, while contributing to peace and stability in the wider Indian Ocean Region.

The meeting highlighted India’s role as both a technology partner and a regional collaborator, as New Delhi and Colombo seek to build a resilient and forward-looking bilateral partnership.

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