The Trump administration has moved to slash the United States Agency for International Development (USAID) foreign aid contracts by 92%, eliminating approximately $60 billion in worldwide assistance, the State Department confirmed Wednesday. The sweeping cuts mark one of the most aggressive cost-reduction measures in US history, aligning with President Donald Trump’s “America First” agenda.
Trump, who signed an executive order on his first day in office mandating a 90-day freeze on all US foreign aid, has long criticized what he calls “wasteful” international spending. The freeze was intended to give his administration time to assess which programs should be retained, with the clear goal of dismantling those deemed unnecessary.
However, the decision has sparked intense legal battles. A federal judge recently ruled that the administration must unfreeze the aid, a directive that the White House ignored for nearly two weeks. On Tuesday, the judge set a 48-hour deadline for compliance. In response, the Trump administration filed an emergency petition with the US Supreme Court, which late Wednesday issued an administrative stay, temporarily halting the lower court’s order.
Sweeping cuts target thousands of programs
Following the review, nearly 5,800 foreign aid contracts worth $54 billion were marked for elimination, with the remaining reductions affecting grants totaling over $15.9 billion. The move signals a dramatic downsizing of USAID’s global footprint.
“These commonsense eliminations will allow our bureaus to focus on remaining programs, find efficiencies, and tailor aid more closely to the Administration’s America First priorities,” a State Department spokesperson said.
The largest cuts targeted multi-year contracts under USAID, while 4,100 grants—amounting to approximately $4.4 billion—were also axed. However, essential programs, including food aid, life-saving medical treatments for diseases such as HIV and malaria, and support for crisis-stricken nations such as Haiti, Venezuela, and Lebanon, were reportedly spared from elimination.
Internal turmoil at USAID
The drastic cuts have sent shockwaves through USAID, an institution established in 1961 with a workforce of over 10,000 employees. The freeze has already led to the layoff of 1,600 US-based employees, with most remaining staff placed on administrative leave.
President Trump and billionaire entrepreneur Elon Musk, a close advisor and top donor, have spearheaded the reforms through the newly established Department of Government Efficiency (DOGE). Trump has openly disparaged USAID, calling it “run by radical lunatics,” while Musk has described it as a “criminal organization” that needed to be put “through the woodchipper.”
Musk defends cuts amid internal revolt
Musk, speaking at Trump’s first cabinet meeting since taking office, defended the drastic reductions, warning that failure to rein in federal spending would lead to national bankruptcy.
“If we don’t do this, America will go bankrupt,” Musk told cabinet members, adding that he had received death threats over the initiative. However, the program has already faced internal resistance, with one-third of DOGE employees resigning after Musk sent a mass email to two million federal workers, ordering them to justify their work or risk termination.
While some cabinet members reportedly voiced concerns over the unprecedented email directive, Trump remains steadfast in his support for Musk’s efforts. “Elon is doing a tremendous job. My team is thrilled,” Trump insisted during the meeting.
Executive order expands DOGE’s power
In a further escalation, Trump signed an executive order Wednesday granting DOGE broader authority to scrutinize all federal spending on contracts, grants, and loans. The order mandates a temporary “credit card freeze” for government employees, effectively suspending nonessential spending for 30 days.
“To the maximum extent permitted by law, all credit cards held by agency employees shall be treated as frozen for 30 days from the date of this order,” the executive order states, though exceptions will be made for disaster relief and other critical services.
As the administration moves forward with its unprecedented foreign aid overhaul, the Supreme Court’s pending decision on the funding freeze could determine the fate of billions in US assistance worldwide. For now, the Trump administration’s aggressive cost-cutting measures appear poised to redefine America’s global humanitarian strategy.
