Trump Administration Implements Deep Cuts to USAID, Sparking Controversy
The Trump administration initiated a series of dramatic cuts to the U.S. Agency for International Development (USAID), aiming to eliminate nearly 15,000 grants worth an estimated $60 billion, according to internal documents. These grants constitute roughly 90% of the agency’s foreign aid contracts. The move follows a spending review by the State Department and fulfills President Trump’s long-held skepticism toward overseas spending.
Trump has consistently argued that foreign aid does not benefit American taxpayers. He has been particularly critical of USAID, even referring to its leadership as "radical lunatics." These views have fueled the administration’s push to significantly reduce the agency’s budget and scope.
Republicans have largely echoed the administration’s sentiments, arguing that USAID is wasteful, promotes liberal agendas, and should be integrated into the State Department. Conversely, Democrats maintain that USAID’s work is crucial for saving lives abroad and advancing U.S. interests by fostering stability in other countries and economies.
Specifically, the Trump administration announced plans to eliminate 5,800 out of 6,200 multi-year USAID contract awards, resulting in a $54 billion reduction. An additional 4,100 out of 9,100 State Department grants are also being cut, leading to a further $4.4 billion decrease.
A State Department memo indicated that these actions were spurred by a federal court order demanding the administration lift its month-long block on foreign aid funding by a specific deadline. In response, State and USAID officials swiftly targeted a large number of foreign aid programs for contract termination. The memo stated that the administration’s actions aimed to eliminate significant waste accumulated over decades of institutional practices. It also outlined plans for broader changes in how USAID and the State Department deliver foreign assistance, with the goal of utilizing taxpayer dollars more effectively to advance American interests.
The legal battle surrounding foreign aid funding continued when U.S. Supreme Court Justice John Roberts temporarily paused the federal judge’s order requiring the Trump administration to release approximately $2 billion in foreign aid funds to contractors by a set deadline. This ruling came after the administration sought an emergency order from the Supreme Court to block the release of USAID funding. Officials had previously stated their inability to comply with the lower court’s order.
USAID was established in the early 1960s to serve as the U.S.’s primary vehicle for delivering aid across the globe, with a particular focus on impoverished and underdeveloped regions. The agency currently operates in 60 countries and employs approximately 10,000 people, with the majority working overseas. Much of the agency’s on-the-ground work is outsourced to third-party organizations funded by USAID.
However, the agency has faced increasing criticism, particularly from figures like Trump and Elon Musk. Musk, self-appointed Chief of Department of Government Efficiency (DOGE), has been vocal about his desire to eliminate waste, fraud, and abuse within the federal government. He compared USAID to "not an apple with a worm in it, but just a ball of worms," suggesting the agency is beyond repair. Trump’s administration has moved swiftly to cut the agency’s budget after imposing a 90-day pause on foreign aid. The administration plans to reduce USAID’s staff to fewer than 300 from the current 8,000 direct hires and contractors. To oversee these changes, Secretary of State Marco Rubio has been appointed as the acting director of USAID.
These drastic cuts have resulted in widespread dismissals within USAID. Staffers were notified weeks ago about pending terminations, and some were seen leaving the agency’s Washington, D.C., offices with boxes containing personal belongings, some of which were inscribed with messages seemingly directed at President Trump.
Senator Joni Ernst, Chairwoman of the Senate DOGE Caucus, recently published a list of projects and programs funded by USAID that she deems questionable. These include $20 million allocated to produce a Sesame Street show in Iraq. Other examples of alleged wasteful spending include over $900,000 to a "Gaza-based terror charity" called Bayader Association for Environment and Development, and a $1.5 million program intended to advance diversity, equity, and inclusion in Serbian workplaces and business communities.
The deep cuts to USAID and the broader reshaping of U.S. foreign aid policy under the Trump administration remain highly controversial. Supporters argue that these changes are necessary to eliminate waste, prioritize American interests, and ensure responsible use of taxpayer dollars. Opponents contend that they will undermine U.S. influence abroad, harm vulnerable populations, and jeopardize global stability. As the administration moves forward with these plans, the debate over the role and purpose of U.S. foreign aid is likely to continue.
