by Adam Israel in Politics

The Trump administration announced the elimination of more than 90% of the U.S. Agency for International Development's (USAID) foreign aid contracts, amounting to $60 billion in overall U.S. assistance cuts worldwide. This action significantly reduces U.S. development and humanitarian aid abroad, leaving few USAID projects for advocates to fight for in ongoing court battles. The administration detailed its plans in an internal memo and court filings, revealing the scale of its retreat from decades-long U.S. foreign aid policies. The memo cited "clearing significant waste stemming from decades of institutional drift" and a desire to "use taxpayer dollars wisely to advance American interests." President Trump and Elon Musk, who headed the Department of Government Efficiency, criticized USAID projects as advancing a liberal agenda and wasting money. A 90-day review of foreign assistance programs resulted in a funding freeze, halting thousands of programs and leading to staff firings and forced leave. Successful programs combating Ebola and HIV/AIDS were also affected. Nonprofits owed billions in unpaid contracts described the contract terminations as a maneuver to circumvent court orders temporarily lifting the funding freeze. Senator Chris Murphy called the administration's actions an attempt to bypass Congress and the courts. A coalition of businesses, NGOs, and former officials expressed shock, demanding transparency. The State Department confirmed Secretary Marco Rubio's review of the terminations. The administration stated it eliminated 5,800 of 6,200 USAID contracts ($54 billion) and 4,100 of 9,100 State Department grants ($4.4 billion). While the administration claimed to be processing back payments, the Supreme Court temporarily blocked a lower court order to unfreeze billions of dollars in aid. The plaintiffs have until Friday to respond. The administration also filed an emergency appeal to the Supreme Court in another case.