The Trump administration has announced sweeping cuts to U.S. foreign aid, eliminating more than 90 percent of USAID contracts and slashing $60 billion in global assistance. The White House says the move is part of a broader effort to reduce federal spending and redirect resources toward domestic priorities.
The cuts, detailed in an internal memo obtained by the Associated Press, leave thousands of U.S.-funded projects in limbo, while aid groups scramble to challenge the decision in court. Critics warn the move could destabilize regions that rely on American assistance, ultimately harming U.S. interests.
‘America First’ in Action
President Donald Trump and his ally Elon Musk have long argued that foreign aid is a drain on American taxpayers, with little return on investment. They claim USAID programs promote a liberal agenda and that the money would be better spent at home.
On January 20, Trump froze all foreign assistance funding overnight, saying he wanted a full review of which programs should continue. Instead of reinstating aid, the administration has now moved to cancel most contracts altogether.
“The U.S. government should be investing in its own people, not handing out cash to countries that don’t respect us,” Trump said in a statement.
According to administration figures:
- 5,800 out of 6,200 USAID contracts have been eliminated, a $54 billion cut.
- 4,100 out of 9,100 State Department grants have been scrapped, cutting $4.4 billion more.
The administration says the money will go toward infrastructure, defense, and tax relief—priorities it believes will have a direct impact on American lives.
Aid Groups Sound the Alarm
The cuts have sent shockwaves through the international aid community. Nonprofits that rely on USAID funding say they had little warning before their contracts were canceled. In a federal court filing, aid groups accused Trump officials of moving “at breakneck speed” to dismantle long-standing programs.
One email from a USAID official, cited in court documents, warned staff: “There are MANY more terminations coming, so please gear up!”
The State Department said Secretary of State Marco Rubio had reviewed and approved the terminations.
With billions in unpaid contracts still frozen, aid organizations have taken the fight to the courts. A federal judge ordered the administration to release at least some payments, and while officials say they have begun processing the backlog, only a fraction of the funds owed have been released.
What Comes Next?
Trump has framed the cuts as part of a broader economic strategy, arguing that cutting foreign aid will help rein in government spending. His supporters see it as a win for the “America First” agenda, ensuring taxpayer dollars benefit U.S. citizens rather than foreign governments.
But critics warn that pulling back from foreign aid could weaken U.S. influence, create instability in key regions, and ultimately hurt the U.S. economy by disrupting global trade and diplomacy.
With legal battles underway and an election on the horizon, the impact of Trump’s decision may not be fully understood for months or even years. What is clear, however, is that U.S. foreign aid policy has shifted dramatically—and the world is taking notice.
