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The State Department has confirmed that the Trump administration is eliminating over 90% of multiyear USAID contracts.
Some shit you should know before you read: Shortly after President Trump took office, he tasked Elon Musk and his Department of Government Efficiency (DOGE) with overhauling US foreign aid spending, citing concerns over waste, fraud, and potential kickbacks. One of DOGE’s first actions was shutting down USAID’s main office, placing thousands of employees on forced leave or terminating their contracts outright. At the same time, the administration enacted a freeze on all foreign aid while they conducted a review to determine if the programs align with President Trump’s agenda. Since then, Trump has repeatedly claimed that billions of taxpayer dollars were being funneled into ineffective projects, bureaucratic inefficiencies, or even corrupt practices in recipient
What’s going on now: According to the State Department, the Trump administration’s review of foreign aid will result in the elimination of roughly 5,800 out of 6,200 multiyear USAID contract awards, amounting to a $54 billion reduction. Additionally, the State Department identified 9,100 foreign assistance grants valued at $15.9 billion, of which 4,100 grants—totaling approximately $4.4 billion—were cut. Officials stated that these eliminations were part of a broader effort to streamline foreign aid spending, ensuring that remaining funds were directed toward programs that directly advanced US interests.
The State Department noted that the review process was led by USAID leadership, with Secretary of State Marco Rubio personally overseeing portions of the eliminations. While the majority of multiyear contracts were terminated, some programs deemed critical—such as food assistance, life-saving medical treatments for diseases like HIV and malaria, and targeted aid to certain countries were spared from the cuts.
Another view: This comes as many democratic lawmakers, some republican lawmakers, and aid organizations have criticized the cuts to USAID. Earlier this month, Senator Dick Durbin said, “Not only are these cuts to USAID a betrayal of American values to satisfy the narcissism of Elon Musk, but they hurt innocent people, and they hurt American farmers… who, for decades, have helped provide such critical and strategic food aid. Not only is this sweeping aid cut illegal and counterproductive, but it hurts American farmer in Illinois, Kansas, Louisiana, Nebraska, Iowa, Texas, Wisconsin, and many other states. American farms supply more than 40 percent of the food aid that USAID distributes around the world. And now, hundreds of millions of dollars’ worth of such commodities are stranded in ports, rotting away at the direction of the new administration.”
