
WASHINGTON (AP) — The administration under former President Trump has announced plans to drastically reduce more than 90% of the U.S. Agency for International Development’s (USAID) foreign aid contracts, along with slashing an overall $60 billion in U.S. assistance worldwide. This decision reflects the administration’s intention to significantly cut back on U.S. development and humanitarian efforts overseas.
Details of the proposed cuts indicate that only a handful of USAID projects will remain, limiting opportunities for advocates to defend them amid ongoing legal battles against the administration.
The plans were outlined in an internal memo obtained by The Associated Press and included in federal court filings related to one of the ongoing lawsuits. Late Wednesday, the Supreme Court intervened, temporarily halting a court order mandating the release of billions in foreign aid by midnight.
This announcement sheds light on the magnitude of the administration’s shift away from U.S. foreign aid and development assistance. It also marks a departure from longstanding U.S. policies that assert foreign aid is instrumental in stabilizing economies and fostering alliances internationally.
The memo noted that officials are “addressing significant waste resulting from years of institutional inertia,” stating further changes in how USAID and the State Department manage foreign assistance are forthcoming, aiming to ensure taxpayer dollars are utilized effectively to support American interests.
Former President Donald Trump and his associate Elon Musk have aggressively targeted foreign aid in their overarching strategy to reduce the scope of the federal government. Both have claimed that USAID-supported projects serve a liberal agenda and are financially wasteful.
On January 20, Trump instituted a 90-day review of foreign assistance programs to determine which should be continued, subsequently halting most foreign aid nearly immediately.
The suspension of funding has impacted thousands of U.S.-backed initiatives globally, with the administration and Musk’s Government Efficiency teams largely removing USAID staff from their roles through mandatory leave and dismissals.
Many successful USAID initiatives, which have been pivotal in controlling Ebola outbreaks and have saved over 20 million lives through HIV/AIDS treatment in Africa, are also being cut from agency funding, according to USAID officials and partner organizations. Formal notifications regarding program cancellations are now being disseminated.
Legal documentation filed in federal court on Wednesday indicates that nonprofit organizations with contracts with USAID have experienced abrupt terminations of aid contracts worldwide, often without adequate review, as reported by both Trump officials and Musk’s team.
“Expect MANY more terminations ahead, so please prepare!” a USAID official relayed in an email sent to staff on Monday, as quoted in the court filings.
Nonprofit organizations among thousands of contractors, who are owed billions since the funding freeze began, described the mass contract cancellations as a strategy to circumvent compliance with the order lifting the temporary funding hold.
This viewpoint was echoed by a Democratic legislator.
Senator Chris Murphy of Connecticut, a member of the Senate Foreign Relations Committee, expressed concerns that the administration was trying to bypass both Congress and the judiciary by swiftly executing their so-called ‘review’ of foreign aid and immediately terminating numerous aid programs globally.
A coalition of prominent U.S. and international businesses, NGOs, and former officials has expressed astonishment at this decision. “The American public deserves clarity about the implications of these cuts—to counterterrorism, global health initiatives, food security, and economic competitiveness,” stated representatives from the U.S. Global Leadership Coalition.
The State Department confirmed that Secretary of State Marco Rubio had reviewed the program terminations.
According to the Trump administration, they will terminate 5,800 out of 6,200 multiyear USAID contracts, resulting in a reduction of $54 billion, along with eliminating 4,100 of 9,100 State Department grants, leading to an additional cut of $4.4 billion.
As reported by the Washington Free Beacon, a memo from the State Department indicated the administration was prompted by a federal court ruling that required officials to lift the aid funding freeze by the end of the day Wednesday.
“In response, State and USAID expedited their actions,” the memo indicated, targeting a large number of foreign aid programs for contract terminations.
Following repeated warnings from the federal judge overseeing the case, Trump administration officials stated that they are beginning to process payments after more than a month of uncertainty, with a few million dollars in back payments owed to both U.S. and international organizations under review.
However, U.S. District Judge Amir H. Ali’s ruling to unfreeze billions in aid will remain suspended while the Supreme Court considers the matter further, as detailed in a brief signed by Chief Justice John Roberts.
Judge Ali previously instructed the federal government to comply with a temporary block on the foreign aid freeze, pursuant to a lawsuit filed by nonprofit entities and businesses. The appellate court denied the administration’s attempt to intervene before the Supreme Court’s detailed examination.
The plaintiffs have until noon Friday to submit their response, as noted by Roberts.
Furthermore, the administration has filed an urgent appeal with the Supreme Court regarding another case, contesting a lower court’s decision to reinstate a federal oversight agency head after Trump’s dismissal.
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Contributions to this report were made by Associated Press writers Gary Fields in Washington and Rebecca Boone in Boise, Idaho.