The Trump administration has announced plans to eliminate more than 90% of the U.S. Agency for International Development’s (USAID) foreign aid contracts, amounting to $60 billion in cuts to U.S. assistance globally.
This move provides clarity on the government’s efforts to significantly reduce American development and humanitarian aid abroad, AP reports.
The proposed cuts leave only a handful of USAID projects intact, making it challenging for advocates to defend them in ongoing court battles against the administration’s decision.
These plans were outlined in an internal memo obtained by The Associated Press and in legal filings related to a federal lawsuit on Wednesday, Feb 26.
Later that day, the Supreme Court intervened, temporarily blocking a lower court’s order that required the administration to release billions in foreign aid by midnight.
Wednesday’s disclosures highlight the scale of the administration’s rollback of U.S. foreign assistance, departing from long-standing policies that have viewed aid as a tool for stabilizing other nations, strengthening economies, and fostering alliances.
According to the memo, officials justified the cuts by stating they were “clearing significant waste stemming from decades of institutional drift.” The document also mentioned upcoming changes in the way USAID and the State Department distribute foreign aid, aiming to “use taxpayer dollars wisely to advance American interests.”
President Donald Trump, along with his ally Elon Musk, has aggressively targeted foreign aid spending as part of their broader effort to shrink the federal government. Both argue that USAID projects support a liberal agenda and are an unnecessary expense.
On January 20, Trump ordered a 90-day review of all foreign aid programs to determine which should continue. However, in practice, nearly all foreign assistance funding was cut off immediately.
The abrupt freeze halted thousands of U.S.-funded initiatives overseas. Additionally, Musk’s Department of Government Efficiency teams and the administration have placed most USAID employees on forced leave or dismissed them outright.
Among the affected programs are widely praised initiatives that helped contain Ebola outbreaks and provided HIV/AIDS treatment, saving over 20 million lives in Africa, according to USAID and partner organization officials. Meanwhile, notifications of program cancellations are being issued.
Legal filings submitted Wednesday by nonprofits that have contracts with USAID describe how Trump appointees and Musk’s teams have been rapidly terminating agreements worldwide, leaving little room for meaningful review.
“‘There are MANY more terminations coming, so please gear up!’” a USAID official wrote in an email to staff on Monday, as quoted by lawyers representing the nonprofits.
Thousands of contractors, collectively owed billions since the funding freeze began, argue that the mass cancellations are a tactic to circumvent the order requiring the administration to temporarily resume aid disbursement. A Democratic senator echoed these concerns.
The administration is trying to “blow through Congress and the courts by announcing the completion of their sham ‘review’ of foreign aid and the immediate termination of thousands of aid programs all over the world,” said Connecticut Sen. Chris Murphy, a member of the Senate Foreign Relations Committee.
Overall, the Trump administration plans to eliminate 5,800 out of 6,200 multiyear USAID contracts, cutting $54 billion. Additionally, 4,100 of 9,100 State Department grants will be terminated, reducing spending by $4.4 billion.
