Trump Administration Terminates Most USAID Contracts and State Department Grants

The Trump administration has announced plans to eliminate over 90 percent of contracts and grants related to foreign aid managed by the U.S. Agency for International Development (USAID).

In total, the administration noted that it would be cutting 5,800 out of 6,200 multiyear USAID contract awards, amounting to a reduction of $54 billion. Additionally, 4,100 of the 9,100 State Department grants are set to be terminated, leading to a $4.4 billion cut.

This decision to slash funding is part of President Donald Trump’s broader initiative to eliminate government waste and fraud.

USAID has emerged as one of the first targets for the new federal Department of Government Efficiency (DOGE), an advisory board led by tech entrepreneur Elon Musk.

The recent funding cuts have sparked alarm among nonprofit organizations and businesses who have initiated legal action against the Trump administration, claiming that the funding freeze violates federal law and jeopardizes life-saving programs globally.

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This action occurs following the government’s appeal of a verdict from a lower court that mandated the Trump administration to pay nearly $2 billion in reimbursements for foreign aid contracts and grants related to “work completed prior” to February 13.

The administration contended that the deadline was unrealistic and that the order could force the government to disburse federal funds “without ensuring that those payments are for legitimate expenses,” according to court documents.

The U.S. Global Leadership Coalition, representing a coalition of significant U.S. and global businesses, NGOs, and former officials, expressed dismay at the latest targeting of USAID.