By Mae Slater on
 February 28, 2025

Trump administration slashes USAID aid contracts by 90%

The Trump administration has announced a sweeping reduction in foreign aid managed by the U.S. Agency for International Development (USAID) and the State Department, prompting widespread debate across political aisles.

Fox News reported that the federal government is set to eliminate nearly 15,000 grants valued at approximately $60 billion as part of efforts to cut perceived waste and increase USAID's alignment with the State Department.

Nearly 15,000 grants managed primarily by USAID are under scrutiny as the Trump administration plans to remove them.

These programs, which have long been regarded as essential tools for international diplomacy and humanitarian efforts, represent about 90% of the agency's foreign aid contracts.

This unprecedented contraction aims to significantly reduce what is viewed by the federal government as extravagant expenditure.

Different Perspectives on Proposed Cuts

The decision stems from a comprehensive review conducted by the State Department. During this evaluation, President Donald Trump emphasized that USAID leadership was inefficient, labeling its directors with unflattering terms.

Aligning with this sentiment, several Republican lawmakers have backed the administration's cuts. GOP supporters argue that the aid was largely ineffective, serving to advance liberal agendas overseas.

Conversely, the Democratic opposition stands firm against the reductions, arguing that such aid plays a critical role in saving lives and promoting U.S. interests by stabilizing volatile regions around the globe. These grants, they assert, not only fulfill humanitarian needs but also help maintain geopolitical stability, which has long-term benefits for U.S. security interests.

A significant judicial factor influencing these cuts is a federal court ruling that had temporarily paused certain foreign aid payments.

In response, U.S. Supreme Court Justice John Roberts provided a temporary reprieve, giving the administration time to manage the release of $2 billion in held funds. This legal tug-of-war added a layer of complexity to an already contentious policy shift.

With only 300 employees of the original 8,000 set to remain, the organization faces a fundamental restructuring. Business magnate Elon Musk, representing the newly established Department of Government Efficiency, expressed harsh criticism toward the agency, suggesting an overhaul rather than small fixes.

Newly-appointed acting Director Marco Rubio steps into this evolving scenario with a hefty agenda. Rubio is tasked with not only overseeing the distribution of funds remaining within the agency but also navigating the political landmines of drastic staffing changes. His role becomes increasingly pivotal as the transition of USAID's strategic focus unfolds.

Implications of New Leadership

Critics have pointed toward specific projects they label as wasteful in nature to justify the cuts. Noteworthy examples pointed to by the administration include a $20 million cultural education project in Iraq, as well as less substantial sums that funded charitable organizations in Gaza and diversity efforts in Serbia. These have been cited as illustrations of monies spent without yielding substantial returns for the American taxpayer.

Since its inception in the 1960s, USAID has operated globally with the mandate of fostering socioeconomic prosperity.

Engaged in more than 60 nations, the agency has embodied what the United States views as its commitment to global welfare. The proposal to deeply cut its resources marks a historic pivot from this longstanding international approach.

The drastic measures currently proposed appear to be more than just a fiscal exercise. They suggest an ideological shift prioritizing domestic over global engagements, a stance that remains hotly debated within government halls and beyond.

As these bureaucratic plans roll out, the broader implications on global U.S. influence remain a critical point of observation for both supporters and skeptics of the move.

Written By:
Mae Slater

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