Trump administration to cut 92% of USAID foreign aid contracts
The Trump administration is cutting 92% in foreign assistance-related grants to save nearly $60 billion as part of budget cuts drive across all federal agencies, the State Department confirmed on Wednesday night.
The big picture: It plans to terminate nearly 10,000 contracts and grants given out by the State Department and U.S. Agency for International Development (USAID), per a Wednesday court filing from administration attorneys.
- It's the administration's latest effort to cap U.S. spending abroad, after a federal judge this month ordered the administration to resume $1.9 billion in foreign aid payments β which the Supreme Court temporarily paused on Wednesday night.
- The impacts of the freeze on aid have been felt by organizations across the globe, as has the upheaval USAID, despite Secretary of State Marco Rubio announcing waivers for "life-saving humanitarian assistance programs."
Driving the news: Nearly 5,800 USAID awards and another 4,100 from the State Department will be cut, the filing states.
- Some 500 USAID awards and about 2,700 State Department ones will remain.
- "USAID evaluated 6,200 multi-year awards with $58.2 billion in value remaining," a State Department spokesperson said in an emailed statement.
Zoom in: The State Department conducted a 90-day review of foreign assistance at the State Department and USAID that saw it examine 9,100 grants valued at $15.9 billion, the Washington Free Beacon first reported.
- "At the conclusion of a process led by USAID leadership, including tranches personally reviewed" by Secretary of State Marco Rubio, the spokesperson said "nearly 5,800 awards with $54 billion in value remaining were identified for elimination as part of the America First agenda."
What we're watching: Supreme Court Chief Justice John Roberts granted a stay and requested aid groups that sued the administration respond by 12 noon Friday ET.
- Meanwhile, the State Department and USAID is set to undergo a process in consultation with Congress to reform the way the U.S. delivers foreign assistance.
Go deeper: Trump admin has to pay foreign aid invoices, judge in USAID case says