Trump administration to cut 92% of USAID foreign aid contracts
The Trump administration is axing 92% in foreign assistance-related grants to save nearly $60 billion as part of a 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 it had frozen 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 have the firings at 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, State Department 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: Supreme Court pauses order on Trump administration foreign aid payments