Trump administration cancels over 90% of USAID foreign aid contracts
The Trump administration is cancelling more than 90% of USAID's $60 billion in aid contracts to other countries.
According to Censor.NET, CNN reports this.
It is noted that the documents submitted by the administration indicate that a total of almost 5,800 USAID grants have been cancelled, while more than 500 grants have been retained. The total maximum value of the contracts that were not cut is about $57 billion.
In addition to USAID grants, the government has also reviewed other state funding programmes. Approximately 4,100 government grants were reportedly cancelled, while 2,700 were left in place. At the same time, the administration clarified that 297 contracts are under review.
The sharp reduction in funding has dealt a serious blow to the work of non-profit organisations and contractors implementing international development programmes. Many initiatives around the world have been put on hold due to the large-scale freeze.
The changes are part of a broader policy of the Trump administration, which has previously furloughed or laid off a significant number of USAID employees.
The cut in USAID funding comes amid a lawsuit challenging the administration's decision to suspend foreign aid. In response to the lawsuit, Secretary of State Marco Rubio said that he made decisions on each grant individually, taking into account the programmes' compliance with the US national interest.
However, the plaintiffs questioned this statement, noting that it was impossible to review so many contracts in a short time.
As a reminder, District Judge Amir Ali of the District of Columbia ordered the Trump administration to resume payments to non-profit organisations that received funds from the United States Agency for International Development (USAID) by midnight on 27 February.
Suspension of USAID funding
As reported, at the end of January, the U.S. federal government agency USAID suspended funding for all programs and projects in Ukraine for 90 days to implement the State Department's directive to audit foreign aid.
However, it is currently unknown whether funding for at least some projects will resume. After all, American billionaire Elon Musk, who heads the US Government's Department of Government Effectiveness (DOGE), called USAID's work ineffective and has already announced the start of its liquidation.
USAID's Director of Security and his deputy were placed on administrative leave on Saturday, February 1, after they failed to provide access to the agency's secure systems to employees of the Department of Government Effectiveness (DOGE) under Elon Musk's leadership.
Subsequently, Musk shared a fake video claiming that USAID allegedly paid millions of dollars to Western stars to increase the popularity of Ukrainian President Volodymyr Zelenskyy.
After that, U.S. President Donald Trump appointed Secretary of State Marco Rubio as acting administrator of the U.S. Agency for International Development (USAID). He stated that the Trump Administration would review USAID programs to determine which ones would be in the national interest and continue to operate.
All USAID hired personnel around the world have been furloughed since February 7. The only exceptions will be for critical staff, key management, and specially designated programs.
