Thu Feb 27 01:04:03 UTC 2025: **Trump Administration Axes $60 Billion in Foreign Aid, Dismantling USAID Contracts**
Washington, D.C. – The Trump administration announced Wednesday the elimination of over 90% of USAID’s foreign aid contracts, totaling a staggering $60 billion in cuts to global assistance. This drastic measure affects approximately 5,800 out of 6,200 multiyear USAID contract awards ($54 billion) and 4,100 out of 9,100 State Department grants ($4.4 billion).
The cuts, detailed in an internal memo and court filings, represent a significant departure from decades of U.S. foreign policy that viewed aid as crucial for stabilizing foreign economies and building alliances. President Trump and Elon Musk, whose Department of Government Efficiency played a key role, have characterized USAID projects as advancing a liberal agenda and wasteful spending.
The administration initiated a 90-day review of foreign assistance programs in January, effectively freezing funding and halting thousands of projects. Nonprofit organizations, facing mass contract terminations, allege that the administration acted hastily and without proper review, using the terminations to circumvent a court order to temporarily lift the funding freeze. Lawyers for these nonprofits cited an internal email indicating more terminations are forthcoming.
While the State Department confirmed Secretary of State Marco Rubio’s review of the terminations, the administration only recently resumed payments on USAID bills after a month-long halt, releasing a fraction of the billions owed. The drastic cuts have sparked ongoing court battles and raised concerns about the impact on global health and stability.
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