The Trump administration has announced a significant reduction in foreign aid, eliminating over 90% of the U.S. Agency for International Development (USAID) contracts. This decision aligns with President Trump’s “America First” policy, aiming to reassess and realign U.S. foreign assistance programs.
According to documents reviewed by Fox News, the administration plans to cut 5,800 out of 6,200 multi-year USAID contract awards, totaling $54 billion. Additionally, 4,100 of 9,100 State Department grants will be eliminated, resulting in a $4.4 billion reduction. These cuts are part of a broader effort to streamline foreign aid and ensure it serves U.S. interests.
In conjunction with these cuts, the administration has initiated a 90-day pause on all U.S. foreign development assistance programs to conduct a comprehensive review. This pause, mandated by Executive Order 14169 titled “Reevaluating and Realigning United States Foreign Aid,” affects various global health and humanitarian programs. While exemptions exist for emergency food assistance and military aid to Egypt and Israel, many other programs face suspension.
The reduction in aid has led to significant operational changes within USAID. More than 1,000 employees and contractors have been dismissed or furloughed following the near-total freeze on U.S. global assistance. The agency’s headquarters have been closed, and its website deactivated. Secretary of State Marco Rubio has been appointed as the acting director of USAID, with plans to merge the agency into the State Department.
The administration maintains that these measures are necessary to ensure that U.S. foreign aid aligns with national interests and is utilized effectively. However, the rapid implementation and scope of the cuts have raised concerns about the potential long-term impact on global stability and America’s strategic influence abroad.
