The United States has significantly reduced its overseas development and aid budgets, cutting multi-year contracts by 92%, or $54 billion, the State Department announced on Wednesday. This move follows President Donald Trump’s executive order, signed after his inauguration, which mandated a 90-day freeze and review of all US foreign aid to align with his “America First” agenda.
The review, led by USAID, targeted multi-year foreign assistance contracts, resulting in the elimination of nearly 5,800 awards. This represents a 92% reduction, totaling $54 billion.
Additionally, over 9,100 foreign assistance grants, valued at $15.9 billion, were reviewed. Approximately 4,100 grants, worth $4.4 billion, were targeted for elimination, a 28% reduction.
A State Department spokesperson stated that these cuts will allow for greater focus on remaining programs and better alignment with the administration’s “America First” priorities.
Programs spared from cuts include food assistance, life-saving medical treatments for diseases like HIV and malaria, and support for specific countries, including Haiti, Cuba, Venezuela, and Lebanon.
