Trump Administration Cuts 90% of USAID Contracts, Slashing $60 Billion in Foreign Aid

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The Trump administration announced on February 27, 2025, a dramatic reduction in U.S. foreign aid, cutting over 90% of contracts from the U.S. Agency for International Development (USAID) and totaling $60 billion in global assistance. According to an internal memo obtained by The Associated Press, only a handful of USAID projects will remain operational as the administration withdraws from decades-long policies that utilized foreign aid as a strategic tool for international stability and alliance-building.

The cuts, which will eliminate approximately 5,800 of 6,200 multiyear USAID contract awards and 4,100 of 9,100 State Department grants, have been framed by officials as an effort to clear "significant waste" from the system. This rapid rollback follows President Trump's directive for a 90-day review of funding that led to an immediate freeze on all foreign assistance. Connecticut Senator Chris Murphy accused the administration of circumventing Congress and the courts to expedite terminations of aid programs worldwide.

As a result of the funding freeze, thousands of U.S.-funded initiatives have been halted, with ongoing legal battles expected as advocates attempt to challenge the cuts.

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