February 28, 2025
3 mins read

Trump admin slashes 90% of USAID foreign aid contracts 

The cuts come as part of a broader review by the US State Department, which has identified 15,000 aid contracts worth $60 billion for termination….reports Asian Lite News

In a sweeping move to overhaul US foreign aid, the Donald Trump administration has decided to slash more than 90% of the US Agency for International Development (USAID) contracts, eliminating 5,800 agreements valued at $54 billion, according to an internal government document. 

The cuts come as part of a broader review by the US State Department, which has identified 15,000 aid contracts worth $60 billion for termination. This includes both USAID and State Department foreign assistance programs. Within the State Department alone, 4,100 foreign aid grants, totalling $4.4 billion, are set to be axed. 

The administration had initially frozen foreign aid for 90 days to assess whether these grants aligned with its “America First” policy. However, a federal court ruling required the government to unfreeze blocked payments to several aid organisations by a Wednesday deadline. In response, the administration accelerated its review to finalise the cuts. 

The Trump administration said it could not feasibly begin payments on the rapid timeline set by US District Judge Amir Ali. 

In the emergency motion to the high court, acting Solicitor General Sarah Harris wrote, “This new order requiring payment of enormous sums of foreign-assistance money in less than 36 hours intrudes on the prerogatives of the Executive Branch. The President’s power is at its apex–and the power of the judiciary is at its nadir–in matters of foreign affairs.” 

By default, the request went to Roberts, who has been designated to handle emergency appeals arising from Washington, DC. His pause lasts until the court takes decision on whether to wipe Ali’s ruling, which Roberts could decide himself or refer to full court for a vote. Roberts directed the plantiffs to respond in court ruling by mid-day Friday, according to The Hill report. 

The decision taken by Roberts implies that the Trump administration does not have to release the funding by midnight, handing Trump a temporary win in his efforts to dismantle United States Agency for International Development (USAID). However, it leaves the USAID contractors and non-profits who filed the case in limbo. 

In the court filings, the coalition wrote that unless the administration makes payments, several plaintiffs and their members could be forced to stop operations this week, arguing that “time truly is of the essence.” 

Lawyer Stephen Wirth wrote, “After flouting the district court’s temporary restraining order for a full twelve days in letter and in spirit — requiring the district court to not once, not twice, but three times order compliance — Defendants bring this premature appeal in a last-ditch effort to evade the order of an Article III court.” 

In a statement, Allison Zieve, director of Public Citizen Litigation Group, which represents one group of plaintiffs, said, “The lengths to which the government is going to flout a court order, all for the goal of ending life-saving humanitarian assistance, is staggering.” 

The US Justice Department insisted that there are other legal ways for the groups to try to access funding they believe they are owed. 

According to a memo accessed by media outlets, the administration is determined to reform US foreign aid spending, ensuring it serves national interests. The memo states, “Every dollar we spend must answer three questions: Does it make America safe? Does it make America stronger? Does it make America more prosperous?” 

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