The Trump administration plans to make significant cuts to the U.S. Agency for International Development (USAID). Internal documents indicate that nearly 15,000 grants totaling $60 billion could be eliminated. This reduction represents about 90% of USAID’s foreign aid contracts and stems from a State Department spending review.
President Trump has long criticized foreign aid, claiming it does not benefit American taxpayers. He even referred to USAID leaders as “radical lunatics.” His administration has labeled these planned cuts as a way to eliminate waste and reassess how taxpayer dollars are spent.
Many Republicans support the cuts, arguing that such spending often supports liberal agendas and should be absorbed by the State Department. Conversely, Democrats contend that foreign aid saves lives and strengthens U.S. interests by stabilizing other countries.
According to a memo from the State Department, the Trump administration aims to cut 5,800 of 6,200 multi-year USAID contracts, totaling around $54 billion, and 4,100 of 9,100 State Department grants, amounting to $4.4 billion.
This swift move follows a federal court order requiring the administration to lift a month-long block on foreign aid funding. Officials acted quickly, targeting numerous foreign aid programs for termination. The memo suggested that these actions are intended to clear out inefficiencies that have built up over decades.
USAID, established in the early 1960s, provides assistance in many parts of the world, particularly in impoverished regions. It currently operates in about 60 countries and employs around 10,000 people, with a significant number working overseas. Much of its work is done through third-party organizations.
Critics in the Trump administration have highlighted issues within the agency. Notably, Elon Musk, part of the Department of Government Efficiency, described USAID as “just a ball of worms,” suggesting it needs complete restructuring.
In a recent shake-up, Trump paused foreign aid for 90 days, intending to reduce the agency’s workforce significantly, leaving fewer than 300 staff members from the current 8,000 direct hires and contractors. Marco Rubio, the Secretary of State, has been appointed as the acting director of USAID.
In the past weeks, many employees have been notified of pending job cuts, with some seen departing the Washington, D.C. office carrying boxes filled with personal items and messages aimed at Trump.
Some Republican lawmakers have pointed out questionable spending initiatives funded by USAID, such as $20 million for a Sesame Street show in Iraq. Other controversial projects reportedly include over $900,000 to a Gaza-based charity with links to terrorism and a $1.5 million program focused on promoting diversity in Serbia.
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