The Trump administration has announced it’s cutting over 90% of the U.S. Agency for International Development’s (USAID) foreign aid contracts, totaling around $60 billion in aid. This major reduction marks a significant pullback from U.S. development and humanitarian efforts abroad, with only a few USAID projects potentially surviving the cuts.
This move comes as part of the administration’s push to reduce what it sees as wasteful spending, claiming that foreign aid has been mismanaged for years. Trump and his ally, Elon Musk, have long criticized foreign aid programs, arguing that they promote a liberal agenda and are a drain on taxpayer dollars.
The administration’s cuts were announced after Trump ordered a 90-day review of foreign assistance programs in January. Since then, funding for thousands of programs has been frozen, and many USAID staff have been placed on forced leave or fired. Successful programs, like those that helped control the Ebola outbreak and saved millions through HIV/AIDS treatment in Africa, have also been halted.
This rapid termination of contracts has sparked backlash, with nonprofit groups and lawmakers, including Sen. Chris Murphy, accusing the administration of trying to bypass court orders and Congressional oversight. A coalition of U.S. and global organizations also expressed concern over the lack of transparency regarding what will be lost, especially in areas like global health, food security, and counterterrorism.
In total, 5,800 USAID contracts and 4,100 State Department grants are being eliminated, cutting over $58 billion in funding. Although the administration has begun processing some back payments to affected organizations, the scale of the cuts has raised alarms about the impact on U.S. global leadership and international relations.