Trump Administration slashes 90% of USAID foreign aid contracts

In a significant move following its temporary freeze on foreign aid, the Trump administration has decided to cut over 90% of USAID’s foreign aid contracts, amounting to approximately $54 billion, according to an internal document accessed by The Washington Free Beacon.

After a comprehensive 90-day review of foreign aid distribution, the U.S. State Department identified 15,000 contracts worth $60 billion for elimination. This includes aid provided by both the State Department and USAID. Within the State Department, 4,100 grants valued at $4.4 billion have been earmarked for cancellation. Meanwhile, USAID is set to lose 5,800 contracts, representing 92% of its multi-year grant spending.

Strategic Review and Justification

The decision aligns with the Trump administration’s "America First" policy, which seeks to ensure that every dollar spent on foreign aid directly benefits the United States. According to a memo obtained by The Associated Press, the administration aims to reform how the U.S. delivers foreign assistance after what it describes as "decades of institutional drift."

“Every dollar we spend, every program we fund, must be justified with the answer to three simple questions: Does it make America safe? Does it make America stronger? Does it make America more prosperous?” the memo states.

Court-Ordered Deadline

The administration moved swiftly to finalize these cuts before a court-imposed deadline, following a federal judge’s directive to unfreeze certain aid payments by Wednesday night. While most foreign aid contracts are being terminated, some legal assistance grants will remain in place to support ongoing court battles, the memo noted.

With these sweeping reductions, the Trump administration aims to minimize taxpayer money flowing abroad while reassessing whether such aid effectively serves U.S. interests.