The Trump administration announced plans Wednesday to drastically reduce U.S. foreign aid, cutting more than 90% of the U.S. Agency for International Development’s (USAID) foreign aid contracts and slashing a total of $60 billion in U.S. assistance worldwide. This move will result in a sharp reduction in U.S. development and humanitarian efforts abroad, eliminating most USAID projects and leaving few remaining to protect in ongoing legal battles.
Details of the cuts were outlined in an internal memo obtained by The Associated Press, as well as in court filings related to federal lawsuits. The decision marks a significant departure from decades of U.S. foreign policy, which has traditionally viewed foreign aid as a means of stabilizing other nations, promoting U.S. interests, and building international alliances.
The memo justified the cuts by claiming the administration was addressing “significant waste” and a history of “institutional drift” within foreign aid programs. Officials indicated that additional changes to how USAID and the State Department deliver foreign assistance are forthcoming.
President Donald Trump and his ally, entrepreneur Elon Musk, have been outspoken critics of foreign aid, arguing that many USAID programs promote a liberal agenda and represent a waste of taxpayer money. On January 20, Trump ordered a 90-day review of foreign assistance programs to determine which should be kept, ultimately halting all foreign assistance funding in a sweeping freeze. This freeze has suspended thousands of U.S.-funded projects globally, while the Trump administration and Musk’s Department of Government Efficiency have pulled most USAID staff off the job through forced leave and firings.
Non-profits affected by the cuts, many of which are owed money from contracts with USAID, have criticized the swift terminations of contracts, which they say are being carried out without sufficient review. In filings, these non-profits describe how Trump political appointees and Musk’s teams are rapidly terminating USAID contracts, further exacerbating the financial uncertainty. One USAID official wrote to staff, “There are MANY more terminations coming, so please gear up!”
Lawmakers have been quick to condemn the cuts. Senator Chris Murphy, a Connecticut Democrat and member of the Senate Foreign Relations Committee, accused the administration of undermining congressional oversight and judicial review by pushing forward with the contract terminations before the court-ordered review process had concluded.
In total, the administration plans to eliminate 5,800 of 6,200 multiyear USAID contract awards, totaling a $54 billion cut, and 4,100 of 9,100 State Department grants, cutting $4.4 billion. The drastic cuts signal a significant shift in U.S. foreign policy, moving away from foreign aid programs that have long been seen as key tools for global influence and humanitarian support.
