Shockwaves Sent Through Aid Sector: Trump's Major Program Cancellations

The Trump administration closed over 80% of USAID programs, affecting 5,200 contracts. This move followed Secretary of State Marco Rubio's review, aimed at eliminating inefficiencies. The decision has led to chaos among aid groups, with lawsuits filed demanding $671 million owed for work already completed, while reversed cuts remain unfunded.

In a significant reshuffle, the Trump administration has shuttered more than 80% of programs managed by the U.S. Agency for International Development, Secretary of State Marco Rubio announced. The cancellations, affecting 5,200 contracts, came after a six-week State Department review.

Rubio cited misaligned spending as the primary reason, noting the loss of tens of billions of dollars that failed to support U.S. national interests. The review aims to streamline the agency's efforts, with around 1,000 programs potentially operating more effectively under State Department oversight. Elon Musk and the Department of Government Efficiency were acknowledged for their roles in the restructuring.

The move has not been without controversy, as aid groups report disruption and uncertainty. These organizations have sued for $671 million in unpaid funds, even as efforts to restore initial cuts have encountered delays. The Trump administration's strategy to downsize federal aid efforts has sparked legal challenges and operational upheaval.

(With inputs from agencies.)