Trump Administration Terminates Majority of US Foreign Aid Contracts

The Trump administration has terminated over 90% of USAID's foreign aid contracts, cutting $60 billion in global assistance. Despite court orders to release funds, payments remain largely frozen. The administration has canceled numerous awards, impacting global humanitarian aid efforts.

The Trump administration has announced a major cutback, terminating over 90% of the U.S. Agency for International Development’s (USAID) foreign aid contracts, according to court filings made on Wednesday. This decision affects more than $60 billion in U.S. assistance globally, as reported by the Associated Press.

The legal dispute involves lawsuits from organizations contracting with USAID and the State Department, who allege illegal freezes in financial aid payments. Despite multiple court orders, including one from U.S. District Judge Amir Ali to release the funds, the administration has largely maintained the freeze to review aid contracts for compliance with its policies.

The abrupt halt in aid impacts worldwide humanitarian relief efforts, casting uncertainty over the delivery of essential food and medical assistance. USAID, which disbursed $43.79 billion in 2023, is crucial to such global support. Amidst lawsuits and internal reorganization, including job cuts, the administration faces sharp criticism for undermining critical aid operations.