The Trump Administration’s Drastic Cuts to Foreign Aid: Measures and Implications

WASHINGTON — The Trump administration has recently made significant strides in cutting the U.S. foreign aid budget. According to an internal memo and filings in a federal lawsuit, the administration is planning to eliminate more than 90% of the U.S. Agency for International Development’s (USAID) foreign aid contracts, amounting to $60 billion in overall assistance around the world. This move underscores a push to cut the majority of U.S. development and humanitarian aid abroad.

The cuts are leaving very few USAID projects, making it difficult for advocates to try to save them. The Department of Justice stated, ‘The administration’s attempts to withdraw all foreign aid comes to a halt as ongoing court battles unfolds.’

The memo detailed by the administration shows that officials intended to, ‘Clear significant waste stemming from decades of institutional drift.’ However, no concrete details or examples were provided by the administration regarding this waste.

The administration has laid out its plans in an internal memo and in filings in a federal lawsuit, which were published Wednesday. The Supreme Court intervened in that case late Wednesday and temporarily blocked a court order requiring the administration to release billions of dollars in foreign aid by midnight.

Wednesday’s disclosures exposed the scale of the administration’s efforts to reduce U.S. aid and development assistance overseas. This move deviates from decades of U.S. policy that advocates for foreign aid as beneficial for U.S. interests, helping to stabilize other countries’ economies and enhance alliances.

The Trump administration outlines changes regarding how USAID and the State Department deliver foreign assistance, stressing the need to, ‘Use taxpayer dollars wisely to advance American interests.’

President Trump and Elon Musk, an ally of the President, have both been vocal about their efforts to cut government spending. Trump pointed out his views on USAID projects, saying, ‘USAID projects advance a liberal agenda and are a waste of money.’

On Jan. 20, President Trump introduced a 90-day program-by-program review of foreign assistance programs, which he said would decide the continuation of the deserving programs, cutting off all funds for foreign assistance virtually overnight.

The administration froze all funds, stopping thousands of U.S. funded projects abroad.

In recent federal court filings, nonprofits who contract with USAID have detailed how political appointees and members of Musk’s team are terminating contracts around the world at rapid speed, stating that these actions leave no time for any meaningful review.

‘There are MANY more terminations coming, so please gear up!’ a USAID official wrote to the staff on Monday, in an email quoted by lawyers in the federal filings.

Those nonprofits claim that the administration is attempting to bypass Court orders by announcing the completion of their sham ‘review’ of foreign aid and terminating thousands of aid programs globally.

Sen. Chris Murphy from Connecticut, a member of the Senate Foreign Relations Committee, sounded the alarm in a phone call, ‘The administration will continue 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.”’

The U.S. Global Leadership Coalition, representing major U.S. and global businesses and nongovernmental organizations, and former officials, expressed their shock. They added, ‘The American people deserve a transparent accounting of what will be lost — on counterterror, global health, food security, and competition.’

The State Department stated, “Secretary of Aid Marco Rubio had reviewed the terminations.”

The administration had planned to terminate 5,800 of 6,200 multiyear USAID contract awards totaling $54 billion. In addition, 4,100 of 9,100 State Department grants ($4.4 billion) were terminated. Currently, a handful of back payments are being finalized, totaling a few million dollars owed to U.S. and international organizations and companies.

U.S. District Judge Amir H. Ali’s order to unfreeze billions of dollars by midnight Wednesday will remain on hold until the Supreme Court has a chance to weigh in fully. The brief order carried a court signature by Chief Justice John Robers. Ali had ordered the federal government to comply with his decision temporarily blocking a freeze nationwide on foreign aid, ruling in a lawsuit filed by nonprofit groups and businesses. An appellate panel refused the administration’s request to intervene before the high court weighed in. The plaintiffs have until noon Friday to respond, Roberts said.

In tandem, the administration submitted an emergency appeal to the Supreme Court in another case, defending its decision to terminate a federal watchdog agency head, a move the lower federal court mandated.

Many U.S. contractors and aides protest the lack of formality inherent to President Trump’s terms. Some aides from the administration have responded to the criticism, mentioning the President’s popularity among Americans constitutes a free pass for his heavy-handed oversight on foreign aid.

Advocates and analysts have expressed concerns about the impact of these cuts on global stability and U.S. interests. They argue that foreign aid is essential for promoting democracy, economic stability, and security. The cuts could undermine U.S. influence abroad and lead to increased instability in regions already facing significant challenges.