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3mo ago

Trump Administration Slashes USAID Foreign Aid Contracts by Over 90%

The move targets $60 billion in savings as part of the 'America First' agenda, sparking widespread layoffs and legal challenges.

U.S. Supreme Court Chief Justice John Roberts attends President Donald Trump's inauguration ceremonies on Jan. 20, 2025 in Washington, DC.
Signs are seen as Tshishiku Henry, a former refugee and Washington State Delegate for the Refugee Congress, speaks during a rally outside the U.S District Court after a federal judge blocked President Donald Trump's effort to halt the nation's refugee admissions system, Tuesday, Feb. 25, 2025 in Seattle. (AP Photo/Ryan Sun)
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Overview

  • The Trump administration has cut 92% of USAID multi-year foreign aid contracts, eliminating $54 billion in grants as part of a broader federal spending review.
  • Thousands of USAID employees have been laid off or placed on leave, with fired staff given only 15 minutes to clear their workstations.
  • The U.S. Supreme Court temporarily blocked a lower court's order to unfreeze $2 billion in foreign aid payments, granting the administration time to present its case.
  • Secretary of State Marco Rubio has been appointed as acting USAID director, overseeing the agency's downsizing and realignment with the administration's priorities.
  • Critics, including congressional Democrats and former USAID employees, argue the cuts will harm global humanitarian efforts and undermine U.S. soft power abroad.