
Thu Feb 27 18:24:05 UTC 2025: ## Trump Administration Slashes US Foreign Aid by $54 Billion
**Washington D.C.** – The Trump administration has drastically reduced US foreign aid, cutting $54 billion from multi-year contracts – a 92 percent reduction – as part of its “America First” agenda. This dramatic cut, announced by the State Department, follows a 90-day freeze on all foreign aid implemented by President Trump on his first day in office.
The review, conducted by the US Agency for International Development (USAID), targeted both multi-year contracts and grants. Nearly 5,800 contracts worth $54 billion were eliminated, while 4,100 out of over 9,100 grants, totaling nearly $4.4 billion, were also cut. The State Department claims these cuts will allow for greater efficiency and alignment with the administration’s priorities.
While significant portions of foreign aid were eliminated, the spokesperson noted that programs providing food assistance, life-saving medical treatments (including for HIV and malaria), and support for countries like Haiti, Cuba, Venezuela, and Lebanon were spared.
The sweeping cuts, however, have not been without legal challenges. A federal judge ordered the administration to unfreeze all aid, a ruling temporarily stayed by Supreme Court Chief Justice John Roberts following a petition by the Trump administration.
The freeze and subsequent cuts have had a significant impact on USAID, leading to the layoff of 1,600 US-based employees and the placement of most remaining staff on administrative leave. The agency, which employed over 10,000 before the freeze, has faced widespread shock and dismay amongst its personnel. The drastic budget reductions fulfill a campaign promise by President Trump to reduce federal spending and bureaucracy. The implementation of these cuts falls under the purview of the newly created Department of Government Efficiency (DOGE), headed by billionaire Elon Musk.