Rep. Nikema Williams, D-Ga., helps distribute food aid bags during a free food distribution at the Young Family YMCA in Atlanta on Thursday. The YMCA’s weekly neighborhood food distribution gave out nearly 10,000 pounds of food to about 400 families. Photo by Erik S. Lesser/EPA
Nov. 7 (UPI) — The Trump administration on Friday night appealed to the U.S. Supreme Court after a federal appeals court upheld a district judge’s order to pay full benefits in November to 42 million in the Supplemental Nutrition Assistance Program.
A short time earlier, the 1st District Circuit left in place a decision on Thursday by Rhode Island federal Judge Jack McConnell, who ordered the administration to pay out the full benefits within one day, saying, “People have gone without for too long.”
The three-member appeals court’s decision means the U.S. Department of Agriculture must take steps to disperse the electronic payments, which are staggered each month. Earlier Friday, the agency said it notified states that it is working to process the payments.
The panel was Chief Appellate Judge David Barron, appointed by President Barack Obama, and Gustavo Atavo Gelpi Jr. and Julie Rikelman, both picked by President Joe Biden.
The judges said that they are still considering a bid for longer relief while assessing the appeal.
Attorney General Pam Bondiposted on X the Trump administration will ask the Supreme Court to stay the Rhode Island-based lower court judge’s ruling, which she called “judicial activism at its worst.”
“A single district court in Rhode Island should not be able to seize center stage in the shutdown, seek to upend political negotiations that could produce swift political solutions for SNAP and other programs, and dictate its own preferences for how scarce federal funds should be spent,” Bondi said.
Seven days ago, McDonnell and U.S. District Court of Massachusetts Judge Indira Talwani told the Trump administration to access available funds to continue. They were both nominated by Obama.
On Monday, the administration told the judge it only had reserved money to pay out 50% of the total $9 billion cost. Then, it was raised to 65%.
The judge directed USDA to find $4 billion “in the metaphorical couch cushions.”
McConnell said the administration could use Section 32 funds, which the USDA uses to help with child nutrition programs. But the administration rejected that plan.
In the appeal, DOJ claimed that the judge’s order “makes a mockery of the separation of powers.” Lawyers said transferring funds would mean diverting money from Child Nutrition Programs.
“Unfortunately, by injecting itself with its erroneous short-term solution, the district court has scrambled ongoing political negotiations, extending the shutdown and thus undercutting its own objective of ensuring adequate funding for SNAP and all other crucial safety-net programs,” they said.
Plaintiffs in the case, which are nonprofit organizations, asked for the full payment, and McConnell agreed.
“The evidence shows that people will go hungry, food pantries will be overburdened, and needless suffering will occur” if SNAP is not fully funded, he said.
“While the president of the United States professes a commitment to helping those it serves, the government’s actions tell a different story,” McConnell wrote in a written order.
The federal government has been shut down since Oct. 1, and the shutdown is now the longest in history.
In every past shutdown, emergency funds have been used to fund the program.
McConnell also mentioned a social media post that Trump made, saying he refused to release any more funds until “the radical-left Democrats open up government, which they can easily do, and not before.”
The post was used as evidence that the administration would ignore McConnell’s order.
BOSTON — President Trump ’s administration asked a federal appeals court Friday to block a judge’s order that it distribute November’s full monthly SNAP food benefits amid a U.S. government shutdown, even as at least some states said they were moving quickly to get the money to people.
The judge gave the Trump administration until Friday to make the payments through the Supplemental Nutrition Assistance Program. But the administration asked the appeals court to suspend any court orders requiring it to spend more money than is available in a contingency fund, and instead allow it to continue with planned partial SNAP payments for the month.
The court filing came even as Wisconsin said Friday that some SNAP recipients in the state already got their full November payments overnight on Thursday.
“We’ve received confirmation that payments went through, including members reporting they can now see their balances,” said Britt Cudaback, a spokesperson for Democratic Gov. Tony Evers.
Uncertainty remains for many SNAP recipients
The court wrangling prolonged weeks of uncertainty for the food program that serves about 1 in 8 Americans, mostly with lower incomes.
An individual can receive a monthly maximum food benefit of nearly $300 and a family of four up to nearly $1,000, although many receive less than that under a formula that takes into consideration their income. For many SNAP participants, it remains unclear exactly how much they will receive this month, and when they will receive it.
Jasmen Youngbey of Newark, N.J., waited in line Friday at a food pantry in the state’s largest city. As a single mom attending college, Youngbey said she relies on SNAP to help feed her 7-month-old and 4-year-old sons. But she said her account balance was at $0.
“Not everybody has cash to pull out and say, ‘OK, I’m going to go and get this,’ especially with the cost of food right now,” she said.
Tihinna Franklin, a school bus guard who was waiting in the same line outside the United Community Corp. food pantry, said her SNAP account balance was at 9 cents and she was down to three items in her freezer. She typically relies on the roughly $290 a month in SNAP benefits to help feed her grandchildren.
“If I don’t get it, I won’t be eating,” she said. “My money I get paid for, that goes to the bills, rent, electricity, personal items. That is not fair to us as mothers and caregivers.”
The legal battle over SNAP takes another twist
Because of the federal government shutdown, the Trump administration originally had said SNAP benefits would not be available in November. However, two judges ruled last week that the administration could not skip November’s benefits entirely because of the shutdown. One of those judges was U.S. District Judge John J. McConnell Jr., who ordered the full payments Thursday.
In both cases, the judges ordered the government to use one emergency reserve fund containing more than $4.6 billion to pay for SNAP for November but gave it leeway to tap other money to make the full payments, which cost between $8.5 billion and $9 billion each month.
On Monday, the administration said it would not use additional money, saying it was up to Congress to appropriate the funds for the program and that the other money was needed to shore up other child hunger programs.
Thursday’s federal court order rejected the Trump administration’s decision to cover only 65% of the maximum monthly benefit, a decision that could have left some recipients getting nothing for this month.
In its court filing Friday, Trump’s administration contended that Thursday’s directive to fund full SNAP benefits runs afoul of the U.S. Constitution.
“This unprecedented injunction makes a mockery of the separation of powers. Courts hold neither the power to appropriate nor the power to spend,” the U.S. Department of Justice wrote in its request to the court.
In response, attorneys for the cities and nonprofits challenging Trump’s administration said the government has plenty of available money and the court should “not allow them to further delay getting vital food assistance to individuals and families who need it now.”
States are taking different approaches to food aid
Some states said they stood ready to distribute SNAP money as quickly as possible.
The Michigan Department of Health and Human Services said it directed a vendor servicing its SNAP electronic benefit cards to issue full SNAP benefits soon after the federal funding is received.
Benefits are provided to individuals on different days of the month. Those who normally receive benefits on the third, fifth or seventh of the month should receive their full SNAP allotment within 48 hours of funds becoming available, the Michigan agency said, and others should receive their full benefits on their regularly scheduled dates.
Meanwhile, North Carolina’s Department of Health and Human Services said that partial SNAP benefits were distributed Friday, based on the Trump administration’s previous decision. Officials in Illinois and North Dakota also said they were distributing partial November payments, starting as soon as Friday for some recipients.
In Missouri, where officials had been working on partial distribution, the latest court jostling raised new questions. A spokesperson for the state Department of Social Services said Friday that it is awaiting further guidance about how to proceed from the U.S. Department of Agriculture, which administers SNAP.
Amid the federal uncertainty, Delaware’s Democratic Gov. Matt Meyer said the state used its own funds Friday to provide the first of could be a weekly relief payment to SNAP recipients.
On Thursday, Nebraska’s Republican Gov. Jim Pillen downplayed the effect of paused SNAP benefits on families in his state, saying, “Nobody’s going to go hungry.” The multimillionaire said food pantries, churches and other charitable services would fill the gap.
Lieb, Casey and Bauer write for the Associated Press. Lieb reported from Jefferson City, Mo., and Bauer from Madison, Wisc. AP writers Margery Beck in Omaha; Mike Catalini in Newark, N.J.; Jack Dura in Bismarck, N.D.; Mingson Lau in Claymont, Del.; John O’Connor, in Springfield, Ill.; and Gary D. Robertson in Raleigh, N.C., contributed to this report.
A host of enhancements to cross-border payments are promising to enrich the global payments landscape. But implementing change within this complex industry isn’t straightforward.
In today’s instant, interconnected world, a crucial juncture has been reached in cross-border payments. Businesses and consumers – increasingly frustrated with inadequate, inefficient legacy international payment processes – are demanding fast, transparent and low-cost services from their providers. And the need for the industry to deliver is becoming ever-more pressing.
Initiatives are progressing at pace to help facilitate the move to seamless, 24/7 real-time global payments. The aim is to effectively replicate the same client experience that has become easily accessible in the domestic payments space. But change of this scale comes with challenges, and a by-product of the race to deliver real-time cross-border payments is a landscape inundated with different concepts and services, with fragmentation exacerbated by individual countries’ unique sets of payments rules and regulations.
Internationally, initiatives such as the G20 Roadmap for Enhancing Cross-Border Payments, which sets out quantitative targets to help make cross-border payments cheaper, faster, more transparent and accessible by 2027, have catalysed industry-wide efforts to promote greater standardization, legal and regulatory harmonization and payment system interoperability1. Certainly, as the industry edges closer to enhanced cross-border payments, there must be a focus not only on enablement, but standardization to tackle the fragmentation head-on, while also ensuring security and client satisfaction are maximized.
The challenging world of cross-border payments
Moving funds internationally is a complex undertaking, involving multiple parties, navigating time zones and adhering to regulatory requirements of each jurisdiction. This makes the process slow and convoluted, with high costs for both sender and receiver, and a lack of transparency regarding payment status and the associated fees. Given this, it is unsurprising that global payments have become a pain point for clients – and indeed their banking partners. Financial institutions (FIs) are only too aware of the impact of legacy processes on client service, and the very real need to implement enhanced processes to get global payments up to speed – literally – with the demands of the 21st century.
As banks resolve to deliver cutting-edge cross-border payments, they face legacy platform challenges, a lack of real-time infrastructure, and innovation hobbled by regulatory constraints. Against this backdrop, banks must also contend with an increasingly competitive landscape. Inventive, nimble non-bank players with a global presence have thrown their hats into the cross-border payments ring to deliver non-traditional approaches to solve the high cost and obscurity problem. By creating alternative payment networks, fintechs are providing a user experience that many banks are currently unable to match when it comes to speed, transparency and cost.
As FIs seek to overcome these obstacles and provide clients with flexible, instant cross-border payments, aligning with the pillars of the G20 Roadmap is essential for supporting a uniform global payments ecosystem and enabling banks to progress effectively towards the cross-border end goal. Designed to promote faster acceleration of global instant payments, it is invaluable to helping the banking industry most effectively chart a path to a coherent, consistent future.
Fusing the old and the new: combining legacy low-value rails with instant clearing
A key approach the industry is adopting will enhance existing infrastructure, with an emphasis on improving speed and visibility. Banks are readily implementing new industry initiatives – such as those provided by Swift – and other new technologies and processes to meet the needs of their global clients.
For example, by standardizing correspondent banking payment reporting under uniform rules, Swift gpi provides real-time, end-to-end tracking and transparency for cross-border payments. This has subsequently contributed to reduced overall end-to-end processing times, and therefore a better service for clients. Building on the success of Swift gpi, Swift Go standardizes correspondent banking relationships under uniform service level agreements. This enables similar capabilities for the low-value payment space – facilitating more efficient delivery channels such as ACH and instant payments, rather than funds transfers only.
Complementing these developments, financial institutions are embracing interoperability, alternative payment rails, and smart foreign exchange (FX) services to reduce costs and enhance service delivery. BNY’s Swift to ACH initiative allows financial institutions to initiate cross-border payments via ISO 20022 pacs.008 messages and deliver them through the domestic US ACH rail – a lower-cost alternative to traditional USD wire transfers. Beneficiaries receive the full amount by the next day, while originators benefit from reduced transaction costs and the ability to provide a predictable client experience. This service is part of a suite of Low Value Payment resources that include offering FX conversions into a wide range of local currencies for delivery over low-cost payment rails – helping institutions lower costs and stay competitive with fintech offerings. BNY’s extensive correspondent banking network, along with strategic collaborations with fintechs and other service providers, empower us to broaden our offering to deliver a wider range of service beyond conventional financial services.
The combination of industry and proprietary initiatives are helping banks to expand their global payments value propositions and deliver the quality of service that clients are seeking – without the need for prohibitively expensive investment in new infrastructure. Banks are becoming truly competitive in today’s cross-border payments space.
Standing on solid ground: foundations for consistency
The next step is to enable interoperability and connectivity between different payments systems and platforms by aligning compliance and regulatory requirements across jurisdictions. This requires governments, network operators, banks, and industry bodies to move in the same direction, adopt common standards, and create uniform processes for exception management. Encouragingly, progress is already underway across several regions.
This is being addressed in Europe through the EPC’s One-Leg Out Instant Credit Transfer (OCT Inst) scheme, which enables payment service providers (PSPs) to leverage existing Single Euro Payments Area (SEPA) payment rails – including procedures, features, and standards – to facilitate cross-border payments that have one euro leg inside and one leg outside SEPA. For example, in November 2024 EBA CLEARING went live with an OCT Inst Service for RT1, its pan-European, real-time payment processing system for instant credit transfers2.
A similar approach is being adopted in other markets to enable cross-border interoperability using existing domestic rails. One notable example is BNY’s partnership with the Commonwealth Bank of Australia (CBA). Through our correspondent banking relationship, BNY clients can now send real-time payments to Australia 24/7, 365 days a year. This has been made possible by a new feature within the New Payments Platform (NPP), Australia’s real-time payments system. The International Payments Service (IPS) allows the Australian dollar component of inbound cross-border payments to be processed instantly. Previously, international transactions could only be settled via traditional funds transfers. Now, CBA can settle and clear payments on BNY’s behalf 24/7, with beneficiaries able to access funds in as little as 60 seconds – regardless of the sender’s location. With a network of over 2,000 correspondent banks across the globe, BNY is replicating this process with partner banks in other countries as other jurisdictions adopt an international framework within their instant payment schemes.
Elsewhere, the US-Mexico-Canada agreement (USMCA) has been established to enhance cross-border payments between the three countries. As part of the strategy, input from fintechs is being encouraged to share skillsets and develop optimized processes.
Certainly, fintechs and emerging technologies have a role to play in shaping global payments. Blockchain-based services for continuous settlement on a single ledger are emerging as alternatives to correspondent banking. Several markets are increasingly selecting digital wallets as a preferred service option.
Combined, these infrastructure developments may allow global payments to occur at any time, without being limited by business hours, time zones, or working days. This could result in greater cash flow visibility, more efficient supplier management, and improved liquidity control for businesses. Overall, real-time payments have increased flexibility in managing liquidity.
Piecing together the payments puzzle
While the industry unites to create a more standardized environment there will, however, inevitably continue to be different schemes in different markets, all with their own unique models, rules and Service Level Agreements. Banks should consider their target markets and integration with relevant initiatives to effectively meet clients’ international payment needs.
Banks then must provide a one-stop shop for global payments that allows clients to move money fast, anywhere, and anytime with ease. Indeed, with complexity and fragmentation rife, it is the ability to offer a simple, effective experience that will provide the greatest value.
At the same time, the industry must work towards integrating common values and infrastructure within initiatives such as ‘one-leg-out’ settlement, digital wallets and correspondent banking models, to enable the global payments ecosystem as a whole to function seamlessly. In this respect, the G20 Roadmap should be regarded almost as a North Star, guiding the industry towards alignment by following its principles. Doing so will help to instil a common infrastructure framework, centered on standardized rules and principles around 24/7 availability, transparency, finality, fraud prevention, and a common messaging standard.
While fragmentation continues to exist within cross-border infrastructure, building solid foundations and promoting collaboration will champion future solidarity, manage markets holistically for a truly global solution, and map the path for future connectivity.
Joanne Strobel-Cort, Managing Director, Head of International Payments Products Treasury Services | BNY
About The Author
Joanne Strobel-Cort is Head of International Payments Products at BNY, steering strategy, development, and execution of global payments solutions. With over 30 years’ experience, Joanne has held senior roles at Wells Fargo—leading segment solutions, technical sales and network management—and served as Head of Payables Products at Citizens Bank, with prior transaction banking positions at Deutsche Bank, ABN AMRO and Citibank. An industry authority, she has participated in SWIFT councils, chaired CHIPS and BAFT committees, spoken at SIBOS and published articles on cross-border payments.
Conspiracy theorist Alex Jones on Thursday asked the Supreme Court to pause his payments on a $1.44 billion defamation judgment entered after he claimed the 2012 Sandy Hook Elementary School shooting in Newtown, Conn., was a hoax. File Photo by Kevin Dietsch/UPI | License Photo
Oct. 9 (UPI) — InfoWars publisher Alex Jones wants the Supreme Court to pause a $1.44 billion defamation judgment against him for making false claims about a 2012 school shooting.
Conservative conspiracy theorist Jones on Thursday asked the Supreme Court to pause his payments to the surviving families of the December 2012 Sandy Hook Elementary School shooting victims, according to The Hill.
The families successfully sued Jones for defamation after he claimed the school shooting was a hoax and are readying to take control of InfoWars, which they intend to turn over to the satirical news site The Onion.
In Thursday’s emergency filing, Jones says the pause is necessary to stop his InfoWars site from being “acquired by its ideological nemesis and destroyed,” NBC News reported.
A Connecticut court in 2022 ordered Jones to pay $1.44 billion to the surviving families of 20 schoolchildren, who were shot and killed by Adam Lanza on Dec. 14, 2012.
Jones filed for personal bankruptcy soon after several judgments were entered against him, but his petition was denied.
He earlier was fined $25,000 per day by a Connecticut judge for refusing to submit to a deposition in the matter.
Lanza, 20, murdered his mother and used her firearm to shoot and kill 20 school children and six adults at the same elementary school he once attended in Newtown, Conn.
He shot and killed himself when law enforcement arrived at the school, which since has been razed and replaced.
