Trump Administration’s Massive Cuts to Foreign Aid Spark Controversy

WASHINGTON (AP) — The Trump administration announced plans to eliminate more than 90% of the U.S. Agency for International Development’s foreign aid contracts, resulting in a staggering reduction of approximately $60 billion in overall U.S. assistance globally. This decision significantly narrows the scope of U.S. development and humanitarian aid efforts.

The drastic cuts, detailed in an internal memo obtained by The Associated Press, leave few USAID projects intact for advocates attempting to challenge the administration’s actions in ongoing court battles. The Supreme Court stepped in late Wednesday, temporarily blocking a lower court’s order that required the administration to release billions in foreign aid by midnight.

Wednesday’s disclosures further illuminate the administration’s withdrawal from foreign aid, which had long been viewed as vital for stabilizing other nations and building alliances. The administration emphasized a need to eliminate what it called “significant waste stemming from decades of institutional drift.” A memo stated that more changes would be forthcoming in how USAID and the State Department distribute foreign assistance, aiming to utilize taxpayer funds effectively to bolster American interests.

President Trump and entrepreneur Elon Musk have significantly escalated their criticism of foreign aid, labeling USAID projects as ineffective and a drain on resources. Trump initiated a review of foreign assistance programs on January 20, aiming to assess which programs would continue, effectively freezing foreign aid funds with almost immediate effect. Thousands of U.S.-funded programs have been halted, causing considerable disruptions in overseas aid.

Many successful USAID initiatives, such as those combating Ebola and providing HIV/AIDS treatment—credited with saving over 20 million lives in Africa—are now facing funding issues, according to officials from USAID and partner organizations.

In federal court filings, nonprofits owed payments from USAID contracts have reported rapid termination of contracts without sufficient review or notice. “There are MANY more terminations coming, so please gear up!” a USAID official warned staff in an email quoted by lawyers representing the affected nonprofits.

Critics, including Democratic lawmakers, assert that the administration’s abrupt contract terminations aim to undermine congressional authority and disregarding judicial oversight. Representative Chris Murphy, a senator from Connecticut, condemned the cuts, asserting, “The administration is trying to circumvent Congress and the courts by swiftly terminating thousands of aid programs globally.”

A coalition representing major U.S. and global businesses, along with NGOs and former officials, expressed shock at the administration’s steps. “The American people deserve transparency regarding the implications for counterterrorism efforts, global health, food security, and foreign competition,” the U.S. Global Leadership Coalition stated.

The administration disclosed plans to eliminate 5,800 of the 6,200 multiyear USAID contract awards, accounting for a cut of $54 billion. Additionally, 4,100 out of 9,100 State Department grants are being eliminated, leading to a reduction of $4.4 billion.

The memo from the State Department, reported first by the Washington Free Beacon, cited a federal court order mandating temporary lifting of the aid funding freeze. As officials reacted quickly, they targeted foreign aid programs for mass contract terminations.

Trump administration representatives finally began processing a few million dollars in back payments owed to domestic and international organizations after over a month of halted disbursements. However, U.S. District Judge Amir H. Ali‘s order to unfreeze billions remained on hold pending further Supreme Court deliberations, according to a brief ruling by Chief Justice John Roberts.

The plaintiffs in the case now have until noon Friday to submit their responses, as the administration has filed an emergency appeal regarding another case. This appeal contests a lower court’s decision to reinstate a federal watchdog agency head who was dismissed by Trump.

Associated Press writers Gary Fields in Washington and Rebecca Boone in Boise, Idaho, contributed to this report.