According to an Al Jazeera news report, the United States has cancelled 83% of all contracts under the US Agency for International Development (USAID) after a six-week federal review. Secretary of State Marco Rubio announced that 5,200 contracts, amounting to tens of billions of dollars, were terminated due to their failure to align with core US national interests, and in some cases, even causing harm.
While Rubio did not detail which programmes were cancelled, he confirmed that around 1,000 remaining programmes would be restructured under the State Department’s oversight, with input from Congress. Rubio credited the Department of Government Efficiency (DOGE), led by billionaire Elon Musk, for facilitating the “historic reform”. Musk, who has driven aggressive downsizing campaigns within the federal government, supported the cuts, calling them “tough but necessary.”
The reform follows President Donald Trump’s directive, issued upon his return to office in January, to pause all foreign aid for 90 days to assess its alignment with his “America First” policy. This decision has severely impacted USAID operations worldwide, halting essential aid deliveries and causing significant workforce reductions. By late February, 1,600 employees were laid off, and 4,200 were placed on indefinite leave.
The cuts have drawn significant criticism. Hundreds of diplomats signed a letter denouncing the move, warning that the abrupt termination of aid contracts jeopardizes alliances and opens doors for adversarial influence. Senator Bernie Sanders also condemned the cuts, citing potential millions of preventable deaths.
Before the freeze, USAID was the primary vehicle for the US’s foreign assistance, which totaled $72 billion in 2023—representing 42% of global humanitarian aid. The recent overhaul raises pressing concerns about the future of US foreign aid and global humanitarian support.
