Key Takeaways:

• The Trump administration plans to eliminate over 90% of USAID foreign aid contracts, totaling $60 billion in cuts.
• The Supreme Court has temporarily blocked lower court orders requiring the release of billions in foreign aid.
• Non-profits and international organizations express concern over the unprecedented reductions in U.S. development assistance.

In a sweeping move that could reshape U.S. foreign aid policy, the Trump administration announced on Wednesday its decision to eliminate more than 90% of the U.S. Agency for International Development’s (USAID) foreign aid contracts. This unprecedented cut is set to amount to $60 billion in total assistance, which would significantly limit aid and development programs around the globe. The administration characterized the cuts as necessary measures to eliminate "significant waste stemming from decades of institutional drift," citing opinions from both officials and allies of President Trump, including entrepreneur Elon Musk. The details of the cuts were laid out in an internal memo obtained by the Associated Press and were also included in court filings related to ongoing legal battles concerning the freeze on foreign aid.

On the same day, the U.S. Supreme Court intervened to temporarily block a lower court's order that mandated the release of billions in foreign aid by midnight. Chief Justice John Roberts indicated that the court would review the matter further, allowing the government to maintain its freeze while legal proceedings unfold. The freeze, which began following an executive order from Trump, immediately halted thousands of U.S.-funded programs abroad, leading to rampant contract terminations and significant staff reductions at USAID.

The memo highlighted that the administration’s approach was a shift away from long-held U.S. practices of using foreign aid to further national interests, stabilize other nations, and build collaborative alliances. As numerous nonprofit organizations, contractors, and other stakeholders raised alarms about the sweeping impacts of these cuts, they warned that the drastic contract terminations were a tactic designed to evade compliance with the federal court orders. An email from a USAID official warned that “many more terminations are coming,” illuminating the rapid pace of the administration's actions.

Notably, the cuts entail the elimination of 5,800 out of 6,200 multiyear contracts through USAID, amounting to cuts of $54 billion. Additionally, about 4,100 of 9,100 State Department grants are slated for termination, resulting in an additional $4.4 billion reduction. Critics, including Senator Chris Murphy from Connecticut, labeled these moves as an attempt by the Trump administration to “blow through Congress and the courts.”

The urgent need for these funds by humanitarian organizations has become particularly critical, as current operations are stymied amidst the ongoing freeze. Following the Supreme Court's intervention, the Trump administration stated they had begun to process a limited number of overdue payments—only a few million dollars—after more than a month of no known spending.

With the Supreme Court poised to further evaluate the case, the future of substantial funding for international aid remains uncertain. The developments surrounding the Trump administration's aggressive cuts to foreign aid programs underscore a significant shift in U.S. foreign policy priorities, raising crucial questions regarding the long-term implications for global humanitarian efforts.

These events took place within a broader context of intensified scrutiny on federal funding initiatives, as various stakeholders call for greater transparency and accountability in government spending.

For further reading, visit SFGate, India Times, HuffPost, and Le Monde.