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Trump Administration Cuts 90% Of USAID Foreign Aid Contracts

President Donald Trump throws pens used to sign executive orders to the crowd during an indoor Presidential Inauguration parade event in Washington, Jan. 20, 2025. (AP Photo/Matt Rourke, File)

In a surprising move, the Trump administration has decided to slash 90% of USAID's foreign aid contracts, sparking outrage among health groups and non-governmental organizations. This decision, following a 90-day spending review announced by President Donald Trump, will have far-reaching consequences on humanitarian programs worldwide.

InterAction, a coalition of NGOs in the United States, warned that the funding cuts would lead to dire consequences such as hunger, disease, and other life-threatening situations for millions of people. The termination of some $60 billion in overall aid and assistance by the Trump administration is expected to impact around 10,000 USAID contracts with NGOs and other organizations, effectively crippling American foreign assistance.

The U.S. Global Leadership Coalition expressed concerns that the move would diminish America's international influence and benefit countries like China, Russia, and Iran. The termination of USAID contracts in South Africa has raised alarms among health groups, particularly in HIV programs, where life-saving services are now at risk.

The President's Emergency Plan for AIDS Relief (PEPFAR), which receives significant funding from USAID, has played a crucial role in combating HIV globally. However, the abrupt funding cuts jeopardize the progress made in fighting diseases like HIV and tuberculosis, especially in countries heavily reliant on U.S. support.

InterAction warns of dire consequences like hunger and disease.
Impact on humanitarian programs worldwide due to funding cuts.
10,000 USAID contracts with NGOs and organizations affected.

The termination letters sent to USAID partners cited the decision as being in the national interest and not aligned with agency priorities. Despite efforts to save funding for life-saving services through waiver programs, many critical programs have lost their funding permanently.

President Trump's swift action to freeze foreign assistance funds and reduce the size of the federal government has drawn criticism from various quarters. The impact of these cuts on humanitarian efforts and global health initiatives remains a point of contention, with concerns raised about the long-term consequences of such drastic measures.

As thousands of USAID workers face layoffs and forced leave, the future of vital aid programs hangs in the balance. The administration's decision to prioritize national interests over humanitarian aid has sparked debates about the role of the United States in global development efforts.

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