In a sweeping policy shift, the Trump administration has announced the termination of over 90% of the U.S. Agency for International Development (USAID) foreign aid contracts, effectively reducing U.S. global assistance by $60 billion. This decision, unveiled on February 26, 2025, aligns with the administration’s broader agenda to downsize federal operations and eliminate programs they perceive as advancing a liberal agenda.
The abrupt cessation of funding has led to the immediate suspension of numerous international programs. For instance, LoveYourself, a nonprofit organization in the Philippines providing free HIV testing and treatment, has halted its services due to the aid freeze. The Philippines alone has experienced a loss of approximately $69.7 million in aid programs nationwide.
In tandem with these cuts, the administration has initiated significant layoffs within USAID. On February 25, former employees were allotted a mere 15-minute window to collect personal belongings from the agency’s Washington, D.C., office, following its closure. This move is part of a broader strategy, led by Elon Musk and the Department of Government Efficiency (DOGE), to dismantle the agency due to alleged wasteful spending. Plans are underway to transfer the remaining core functions of USAID to the State Department.
The decision has sparked widespread criticism from various quarters. Nonprofit organizations and contractors have expressed concerns over the abrupt termination of contracts and the lack of comprehensive review prior to the cuts. Critics argue that these actions could undermine U.S. foreign policy objectives, which traditionally view foreign aid as a vital tool for promoting global stability and fostering alliances.
Despite the administration’s intent to reduce federal spending, data indicates that overall government expenditures have not decreased. In fact, U.S. government spending rose to $710 billion in the first month of President Trump’s new term, up from $630 billion during the same period the previous year. This increase is attributed to heightened spending on health and retirement programs, as well as rising interest payments, which have offset the proposed cuts.
As the administration proceeds with its plans to overhaul foreign aid distribution, the long-term implications of these substantial reductions remain uncertain. Observers and stakeholders are closely monitoring the situation, particularly concerning how these changes may affect global health initiatives, food security programs, and the United States’ diplomatic relations worldwide.
