Trump Administration Slashes 90% of USAID Foreign Aid – What It Means

Trump Administration Cuts 90% of USAID Foreign Aid Contracts

The Trump administration has announced drastic cuts to the U.S. Agency for International Development (USAID), slashing over 90% of its foreign aid contracts and reducing overall U.S. assistance worldwide by $60 billion. This move significantly scales back America’s long-standing role in global humanitarian and development efforts, sparking legal battles and strong opposition from lawmakers, aid organizations, and international allies.

Massive Foreign Aid Cuts: What’s Happening?

According to an internal memo and court filings obtained by The Associated Press, the administration is eliminating 5,800 out of 6,200 USAID multiyear contract awards, amounting to a $54 billion reduction. Additionally, 4,100 out of 9,100 State Department grants are being terminated, totaling $4.4 billion in cuts.

The cuts affect a wide range of programs, including those credited with containing Ebola outbreaks and providing life-saving HIV and AIDS treatment in Africa. Thousands of aid projects worldwide are now left without funding, prompting immediate concerns over humanitarian crises and global stability.

Legal Challenges and Supreme Court Intervention

The administration’s decision to freeze and terminate aid contracts has triggered multiple lawsuits. A federal judge, U.S. District Judge Amir H. Ali, ordered the administration to release billions in frozen aid by midnight Wednesday. However, the Supreme Court, led by Chief Justice John Roberts, temporarily blocked the order while reviewing the case.

Nonprofit organizations and businesses that hold contracts with USAID argue that the administration is using mass contract cancellations to bypass court rulings that required the resumption of aid payments. The plaintiffs have until noon Friday to respond to the Supreme Court’s brief order.

Why Is the Trump Administration Cutting Foreign Aid?

President Donald Trump and his ally, Elon Musk, have aggressively pursued cuts to foreign aid, arguing that many USAID projects promote a “liberal agenda” and represent government waste. On January 20, Trump ordered a 90-day review of all foreign assistance programs, resulting in an immediate halt to aid disbursement.

A memo from the administration described the cuts as an effort to eliminate “significant waste stemming from decades of institutional drift,” with plans to reshape how USAID and the State Department allocate foreign assistance to better align with “American interests.”

Impact on USAID and Global Humanitarian Efforts

The funding freeze has forced thousands of U.S.-funded programs to shut down or pause operations. Many USAID staff members have been placed on forced leave or terminated altogether.

Among the most severely affected programs are:

• Global Health Initiatives: Life-saving HIV/AIDS treatment programs in Africa.
• Epidemic Prevention: USAID-funded efforts to contain Ebola and other disease outbreaks.
• Food Security Programs: Aid efforts providing food assistance to struggling regions.
• Counterterrorism Initiatives: Programs aimed at stabilizing conflict-prone areas.

Many aid organizations are scrambling to find alternative funding sources, but the sudden cuts have left critical humanitarian efforts in limbo.

Backlash from Lawmakers and Advocacy Groups

The administration’s sweeping cuts have been met with outrage from lawmakers, aid organizations, and international allies.

Senator Chris Murphy (D-Connecticut), a member of the Senate Foreign Relations Committee, accused the administration of rushing through its foreign aid review to avoid court intervention.

“The administration is trying to blow through Congress and the courts by announcing the completion of their sham ‘review’ and immediately terminating thousands of aid programs all over the world.”

The U.S. Global Leadership Coalition, a coalition of businesses, NGOs, and former officials, condemned the decision, warning that it would undermine U.S. global influence and security:

“The American people deserve a transparent accounting of what will be lost — on counterterrorism, global health, food security, and competition.”

Even within the administration, some officials have expressed concerns over the abrupt nature of the cuts, with leaked emails revealing internal chaos as terminations were ordered at breakneck speed.

What’s Next?

The Supreme Court is expected to rule on the aid freeze in the coming days. Meanwhile, USAID contractors, nonprofits, and foreign governments are left in uncertainty, scrambling to assess the long-term impact of these cuts.

With billions in aid at stake, the outcome of this legal battle could reshape U.S. foreign assistance policy for years to come.

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