The United States has significantly reduced its foreign aid and development budgets, slashing multiyear contracts by a staggering 92%, or $54 billion, according to the State Department.
Following his inauguration on January 20, President Donald Trump signed an executive order freezing all US foreign aid for 90 days. This period allowed for a review by senior political leaders to identify areas where spending could be reduced, focusing on programs that did not align with the “America First” agenda.
The review primarily targeted multiyear foreign assistance contracts administered by the US Agency for International Development (USAID). By the end of the review, nearly 5,800 contracts, valued at $54 billion, were identified for elimination, marking a 92% reduction. The review also examined over 9,100 grants, worth more than $15.9 billion, resulting in the elimination of approximately 4,100 grants valued at $4.4 billion, a 28% cut.
According to a State Department spokesperson, these cuts will help streamline operations, allowing agencies to focus on remaining programs, increase efficiency, and better align future projects with the administration’s priorities. However, certain essential programs, such as food assistance, medical treatments for diseases like HIV and malaria, and aid to countries like Haiti, Cuba, Venezuela, and Lebanon, were not affected by the cuts.
