In a sweeping overhaul of U.S. foreign assistance programs, the Trump administration has announced unprecedented cuts that will eliminate more than 90% of USAID’s international aid contracts. This dramatic reduction, totaling approximately $60 billion in global assistance, represents one of the most significant shifts in American foreign aid policy in decades.
Scale of the cuts
According to internal documents and federal court filings, the administration plans to terminate 5,800 out of 6,200 multi-year USAID contract awards, resulting in a $54 billion reduction. Additionally, 4,100 of 9,100 State Department grants will be eliminated, cutting another $4.4 billion in foreign assistance.
Legal challenges and Supreme Court intervention
The timing of these cuts coincides with ongoing legal battles between the administration and aid organizations. The Supreme Court has temporarily blocked a lower court order that would have required the release of billions in foreign aid by midnight. Chief Justice John Roberts has given plaintiffs until noon Friday to respond.
Implementation and internal response
An internal USAID email quoted in court filings revealed the urgency of the process: “There are MANY more terminations coming, so please gear up!” The administration characterized these actions as “clearing significant waste stemming from decades of institutional drift,” according to internal memos.
Political reaction
Connecticut Senator Chris Murphy, a member of the Senate Foreign Relations Committee, criticized the administration’s approach, stating: “The administration is brazenly attempting 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.”
Background of the funding freeze
The cuts follow President Trump’s January 20th order for a 90-day program review of foreign assistance programs. The subsequent funding freeze has halted thousands of U.S.-funded programs abroad, with both Trump appointees and Elon Musk’s Department of Government Efficiency teams implementing widespread staff reductions through forced leave and terminations.
The State Department has confirmed that Secretary of State Marco Rubio reviewed the terminations, and officials have begun processing a limited amount of back payments owed to U.S. and international organizations, though this represents only a small fraction of the total frozen funds.
