Trump administration slashing 90% of USAID foreign aid contracts, documents show

The Trump administration’s plan to slash funding for the U.S. Agency for International Development (USAID) has been revealed, with nearly 15,000 grants worth $60 billion set to be eliminated, according to internal documents. This move represents about 90% of foreign aid contracts and comes after a review on spending by the State Department.
President Trump has long been critical of overseas spending, arguing that it does not benefit the American taxpayer. He has referred to those who run the top agency as “radical lunatics.” Republicans have also criticized USAID, calling it wasteful and claiming it promotes liberal agendas. They argue that the agency should be folded into the State Department.
The administration plans to eliminate 5,800 of 6,200 multi-year USAID contract awards, amounting to a cut of $54 billion. Additionally, 4,100 of 9,100 State Department grants are set to be eliminated, totaling $4.4 billion. The State Department memo stated that these cuts are necessary to address significant waste that has accumulated over decades.
The Trump administration’s move to slash funding for USAID follows a federal court order that required officials to lift a month-long block on foreign aid funding. The administration asked the Supreme Court to block the release of around $2 billion in foreign aid funds to contractors, but Justice John Roberts paused the order.
USAID was established in the 1960s to provide aid to impoverished and underdeveloped regions around the world. The agency now operates in 60 nations and employs around 10,000 people, with two-thirds working overseas. However, the agency has faced criticism for inefficiency and questionable spending.
In response to these criticisms, the Trump administration plans to gut the agency and leave fewer than 300 staffers out of the current 8,000 direct hires and contractors. Secretary of State Marco Rubio has been appointed as the acting director of USAID.
As thousands of staffers face pending dismissals, some have been seen leaving offices in Washington, D.C., carrying boxes with messages seemingly directed at President Trump. Senator Joni Ernst has highlighted questionable projects and programs funded by USAID, including funding for a Sesame Street show in Iraq and support for a Gaza-based charity with alleged terror ties.
Overall, the Trump administration’s plan to slash funding for USAID has sparked controversy and debate. While some see it as a necessary step to eliminate waste and inefficiency, others argue that it will have negative consequences for global stability and American interests. The future of USAID remains uncertain as the administration moves forward with its plans to reshape foreign aid programs.