Trump Slashes $60B in Foreign Aid, Faces Lawsuits \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ The Trump administration announced sweeping cuts to foreign aid, eliminating more than 90% of USAID contracts and slashing $60 billion in global assistance programs. The move, described as a strategy to curb wasteful spending, has halted thousands of U.S.-funded projects abroad, sparking legal battles with nonprofits and contractors. The Supreme Court temporarily blocked a lower court’s order requiring the administration to release frozen aid funds, as lawsuits over the abrupt terminations continue.
Trump’s Foreign Aid Cuts: Quick Looks
- $60 Billion in Foreign Aid Eliminated: The Trump administration is cutting 90% of USAID contracts, halting thousands of global assistance programs.
- Supreme Court Blocks Immediate Aid Release: A lower court ordered aid funds to be unfrozen, but Chief Justice John Roberts temporarily blocked the ruling.
- Mass Contract Terminations: USAID is canceling 5,800 of 6,200 contracts ($54B cut), while the State Department is eliminating 4,100 grants ($4.4B cut).
- Trump and Musk Target Foreign Aid: The Department of Government Efficiency, led by Musk’s team, is rapidly slashing federal spending.
- Nonprofits and Contractors Owed Billions: Aid organizations claim they are owed unpaid funds, accusing the administration of rushing terminations to avoid legal action.
- Congressional Backlash: Sen. Chris Murphy and other Democrats accuse Trump of bypassing courts and Congress to enforce the cuts.
- Humanitarian and Security Concerns: Critics warn that eliminating aid could destabilize fragile regions, impacting counterterrorism, health, and economic alliances.
- Legal Battles Continue: The Supreme Court will soon decide whether the aid freeze remains, with potential global repercussions.
Deep Look
The Trump administration has taken an unprecedented step in its effort to shrink the federal government, announcing it will eliminate more than 90% of U.S. foreign aid contracts, totaling $60 billion in cuts. The move, part of Trump’s broader review of federal spending, effectively ends most USAID development and humanitarian programs worldwide.
In an internal memo obtained by The Associated Press, the administration defended its decision, calling the cuts necessary to eliminate waste and refocus spending on American interests.
“We are clearing significant waste stemming from decades of institutional drift,” the memo states.
The move has stunned the global development community, with thousands of nonprofit organizations and contractors now scrambling to determine whether their programs will survive. Critics argue that the administration is moving too quickly, canceling programs without a meaningful review, and disregarding the long-term consequences of abandoning U.S. aid efforts.
Supreme Court Temporarily Blocks Order to Release Funds
The administration’s foreign aid freeze has been the subject of multiple lawsuits, with nonprofits, global businesses, and lawmakers challenging the cuts in federal court.
On Wednesday, a U.S. District Court ordered the Trump administration to unfreeze billions of dollars in foreign aid by midnight. However, Chief Justice John Roberts temporarily blocked the ruling, allowing the administration to hold the funds until the Supreme Court can weigh in further.
The lawsuit, filed by humanitarian organizations and aid contractors, alleges that the administration’s sudden contract terminations violate federal law and were implemented without congressional oversight.
Senator Chris Murphy (D-CT), a member of the Senate Foreign Relations Committee, accused the Trump administration of rushing to terminate contracts before the courts could intervene.
“They’re trying to blow through Congress and the courts by terminating thousands of aid programs worldwide,” Murphy said.
The plaintiffs have until noon Friday to respond to the Supreme Court, as the case continues to unfold.
Trump and Musk Target Foreign Aid as “Wasteful Spending”
The decision to gut U.S. foreign aid comes amid a broader effort by President Trump and Elon Musk, whose Department of Government Efficiency teams have been working to reduce federal spending across multiple agencies.
Since January 20, when Trump ordered a 90-day review of foreign assistance programs, USAID funding has been effectively frozen, leaving thousands of projects without resources or staff.
The funding halt has already:
- Stopped thousands of U.S.-funded humanitarian programs across Latin America, Africa, and Asia.
- Placed USAID employees on forced leave or led to mass firings.
- Left billions of dollars in unpaid contracts for development organizations worldwide.
“There are MANY more terminations coming, so please gear up!” a USAID official wrote in an email, as quoted in court filings.
These terminations, critics argue, are not a careful review of programs, but rather a rapid dismantling of USAID’s global footprint.
What’s Being Cut? The Scope of USAID and State Department Reductions
The administration’s internal memo and court filings provide a clearer picture of how much foreign aid is being eliminated:
- USAID Cuts: 5,800 of 6,200 contracts eliminated, totaling $54 billion in reductions.
- State Department Grants: 4,100 of 9,100 grants canceled, reducing $4.4 billion in funding.
These cuts affect counterterrorism efforts, global health initiatives, food security programs, and economic development projects, among others.
The U.S. Global Leadership Coalition, representing American businesses and nonprofits, condemned the decision:
“The American people deserve transparency on what is being lost—on counterterror, global health, food security, and competition.”
Secretary of State Marco Rubio has reviewed and approved the terminations, according to the State Department.
Rushed Terminations to Avoid Legal Challenges?
Court documents suggest that Trump administration officials are accelerating contract terminations to prevent courts from reinstating foreign aid funding.
Judge Amir H. Ali, who ordered the government to unfreeze the aid, warned that the administration was deliberately trying to bypass legal oversight by canceling contracts outright.
Some humanitarian organizations have accused the administration of acting in bad faith, arguing that aid cuts are being used as a political tool rather than a fiscal necessity.
Even though the Supreme Court has temporarily blocked the unfreezing of funds, the legal battle over Trump’s foreign aid cuts is far from over.
What Happens Next?
With billions in foreign aid at stake, the battle over Trump’s decision to eliminate most U.S. global assistance programs will continue in both the courts and Congress.
1️⃣ Supreme Court Review: The justices will decide whether to uphold or strike down the foreign aid freeze in the coming weeks.
2️⃣ Congressional Response: Lawmakers may attempt to reinstate funding through emergency legislation or hearings.
3️⃣ Global Fallout: Countries and organizations reliant on U.S. assistance will scramble for alternative funding.
While Trump and Musk defend the cuts as necessary for U.S. taxpayers, critics argue that the consequences—both humanitarian and strategic—could be severe.
Conclusion: A Radical Shift in U.S. Foreign Aid Policy
The Trump administration’s decision to slash more than $60 billion in foreign aid represents one of the most drastic cuts to U.S. global assistance in history.
- Thousands of USAID and State Department programs have been eliminated.
- Nonprofits, contractors, and global organizations face billions in unpaid obligations.
- The Supreme Court’s decision could determine the future of U.S. foreign aid policy.
While Trump and Musk frame the cuts as eliminating waste, critics warn that dismantling U.S. development efforts will have long-term diplomatic and security consequences.
As legal battles unfold, the fate of U.S. humanitarian and development assistance hangs in the balance.
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