In a recent move, the Trump administration announced its intention to significantly reduce foreign aid by eliminating more than 90% of the contracts managed by the U.S. Agency for International Development (USAID). Alongside this are plans to slash $60 billion in U.S. assistance globally, delineating a robust plan to curtail U.S. involvement in international development and humanitarian efforts.
The disclosed reductions reveal that few current USAID projects will survive, triggering continued legal battles from advocates and partners attempting to preserve the programs. Details of the administration’s strategy surfaced through an internal memo and supplementary federal lawsuit documents on Wednesday.
The Supreme Court intervened that same day, temporarily halting a court order mandating the release of vast sums of foreign aid funding by midnight. These court filings outline the administration’s withdrawal from its longstanding international aid role, which historically has seen U.S. foreign aid as instrumental in stabilizing global economies, fostering alliances, and ultimately serving U.S. interests.
The administration views the cuts as a means of eliminating what it terms “significant waste,” resulting from years of suboptimal tailored approach in foreign aid programs. Further adjustments in how USAID and the State Department administer aid are anticipated, focusing on the efficient use of taxpayer dollars to prioritize American interests.
President Donald Trump, alongside supporter Elon Musk, is confronting foreign aid with a level of assertiveness and speed unprecedented in their broader agenda to reduce federal government size. They argue that many USAID initiatives forward a liberal viewpoint and waste financial resources.
On January 20th, Trump instigated a 90-day audit of foreign aid programs to determine eligibility for continuation, almost simultaneously freezing all foreign aid funds. This halt has incapacitated numerous U.S.-funded international projects. Moreover, the majority of USAID staff encountered job disruptions due to enforced leaves and furloughs by both the Trump administration and the Department of Government Efficiency, under Musk’s guidance.
Among the halted initiatives are notorious USAID-supported programs credited with combatting diseases in Africa, like Ebola, HIV, and AIDS, responsible for saving millions of lives. Notifications concerning program terminations continue to be issued.
Court documents from Wednesday showcase descriptions from independent contractors, unpaid for services provided under USAID contracts since these terminations transpired unexpectedly without a detailed review. “‘There are MANY more terminations coming, so please gear up!”’ a USAID official cautioned staff in an internal email, now part of court records from these nonprofits.
An assortment of nonprofit organizations, collectively owed substantial payments, criticize these mass contract cancellations as an attempt to dodge temporarily lifting the funding freeze. Such a stance is echoed by Connecticut Senator Chris Murphy, of the Senate Foreign Relations Committee, who accuses the administration of bypassing judicial and legislative branches by prematurely declaring their review complete and abruptly ending thousands of aid projects.
Shock echoed from a coalition of major U.S. and international corporations, NGOs, and former officials lamenting the decision, with the U.S. Global Leadership Coalition asserting that such an action demands transparent accountability for potential losses impacting counterterrorism, global health, food security, and competitive edge.
Secretary of State Marco Rubio has reportedly examined the contract terminations. In aggregate, the Trump administration plans to annul 5,800 out of 6,200 ongoing USAID contract awards, saving $54 billion. Simultaneously, the Department of State is cutting an additional 4,100 of 9,100 grants, equating to $4.4 billion in savings.
A memo, first revealed by the Washington Free Beacon, explained that a federal court order pushed the administration to act swiftly to countermand the financial blockade on foreign aid funding by the end of that day. Consequently, State and USAID moved briskly, targeting widescale USAID and State Department aid programs for immediate termination.
Despite repeated federal judicial warnings, Trump administration officials, as of Wednesday, signaled the commencement of overdue payments after more than a month-long delay. They have begun to process a fraction of outstanding payments to U.S.-based and international entities.
However, U.S. District Judge Amir H. Ali’s directive to release billions by Wednesday night remains paused as the Supreme Court considers the issue further, currently led by Chief Justice John Roberts. Ali had implemented a temporary block on the aid freeze following a lawsuit from nonprofit organizations and businesses, with an appeals panel rejecting the administration’s previous attempts to prevent the unfreeze.
Roberts stated the plaintiffs would have until noon Friday to reply, whilst the Trump administration has filed an emergency appeal in another case, seeking overturning of a lower court decision reinstating a federal watchdog dismissed by Trump.
