Trump Slashes 83% of USAID Programs

Trump officially cancelled 83% of USAID Programmes.

Following January 20th, the Trump administration has relentlessly pursued the dismantling of the United States Agency for International Development, also known as USAID, through executive orders and mass contract terminations for most of its staff. But what exactly is USAID, and why has the Trump administration set its sights on eliminating this agency?

What is USAID?

USAID is an independent agency of the United States government that is responsible for administering foreign aid, development assistance, humanitarian relief, health programmes and security aid. Administered by John. F. Kennedy in 1961 under the Foreign Assistance act, USAID has played a vital role in providing critical support for more than 100 countries in Asia, Latin America, Africa and Eastern Europe. The agency’s initiatives span environmental aid, disaster relief and socioeconomic development, making it a cornerstone of US foreign policy for over 70 years. [1] Notably, USAID also operates the world’s gold standard famine detection system, leveraging data analysis to predict food shortages and avert potential crises. Despite its immense global impact, USAID accounts for a small fraction of the federal budget, typically ranging around 1%, reaching 1.17% in 2023. [2] With an annual budget of approximately $40billion, the agency stands as the world’s largest aid organisation, managing over 40% of all humanitarian assistance tracked by the United Nations in 2024. As the world’s largest aid organisation, USAID also serves as a crucial soft power tool, significantly extending American influence in recipient nations through development and diplomacy.

The Trump Administration’s Scrutiny and Cuts.

Since resuming office, Trump has subjected USAID to intense scrutiny in order to align with his ‘America First’ foreign policy stance. One of his first executive orders imposed an immediate freeze on nearly all foreign aid, pending a 90-day review aimed at identity budget cuts led by Elon Musk and the department DOGE (Department of Government efficiency). This move ignited backlash and controversy, with congressional democrats arguing that presidents cannot unilaterally dissolve federal agencies. However, if both chambers of Congress approve legislation dismantling USAID, Trump’s goal to eliminate the agency could become a reality. The administration, along with Musk, a vocal advocate of budget reductions, have justified the proposed cuts by alleging inefficiency and instances of fraud within the agency, fueling existing efforts to significantly crucial USAID’s operations significantly.

Following the executive order on January 20th, more than 1,000 agency employees were placed on leave by February 4th. Just two days later, USAID leadership announced a drastic workforce reduction, slashing the global staff from over 10,000 to a mere few hundred. On February 26th, court documents revealed that officials had agreed to terminate 6,000 USAID awards, effectively dismantling 90% of the agency’s projects. These developments signaled what many viewed as the beginning of the agency’s dismantlement. However, in an unexpected reversal, the Supreme Court rejected Trump’s request to freeze $2 billion in foreign aid payments for completed USAID projects, complicating the administration’s efforts immensely. [3]

However, on Monday 10th March,, the US has officially cancelled 83% of USAID programmes with over 5,200 USAID contacts have also been terminated following the 6 week review of the agency, said by Secretary of State Marco Rubio on the platform X. [4] "The 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States," he said. The Trump administration also intends for the remaining 1,000 programmes to be administered and monitored more effectively. "In consultation with Congress, we intend for the remaining 18% of programs we are keeping (approximately 1000) to now be administered more effectively under the State Department," the Secretary of State added. [5]

What lies ahead?

With 83% of USAID programmes officially cancelled and most of its workforce decimated as of Monday 10th March, it is evident that the erosion of USAID does not solely represent the rollback of a bureaucratic institution, but rather a fundamental shift in US Foreign Policy. Described by Secretary of State Marc Rubio as a ‘historic reform’, the loss of these vital programmes that administer disaster relief, humanitarian aid and socioeconomic development weakens US influence abroad, which other hostile powers may seek to fill. In conclusion, while the Trump administration and the Musk-led department of DOGE celebrate these cuts in the name of government efficiency, this also reflects an administrative shift which has turned its back on a legacy of global dominance in international aid and diplomacy. The Trump administration, backed by Elon Musk and the newly established DOGE, has made its intentions evident, this is the beginning of the end for USAID.

Sources:

[1]https://www.bbc.co.uk/news/articles/clyezjwnx5ko

[2]what-the-data-says-about-us-foreign-aid

[3]https://www.nytimes.com/interactive/2025/03/05/us/politics/usaid-trump-timeline.html

[4]us-officially-cancelling-83-of-programs-at-usaid-rubio-says

[5]https://akipress.com/news:822507:U_S__announces_cancellation_of_83__of_USAID_programs/