The Trump administration successfully cancelled most foreign aid contracts dispersed by USAID, a federal agency. Only 500 of the 6,300 awards remain in place. 

President Trump earlier halted new foreign aid in January pending further review by Secretary of State Marco Rubio. Despite several lawsuits, the 90-day pause on foreign aid payments remains in place.

Washington froze most payments despite a temporary restraining order from the U.S. District Judge Amir Ali that they be released on Wednesday. The Supreme Court put the order on hold yesterday. 

An earlier court filing justified the cancellation of contracts, particularly those considered wasteful or related to diversity, equity, inclusion efforts. 

Officials were “clearing significant waste stemming from decades of institutional drift,” reads a memo detailing aid rollbacks. In 2023, USAID administered 60% of U.S. foreign aid, totalling $43.79 billion. Two-thirds of all spending serviced initiatives abroad in more than 130 countries.

For the State Department, however, 4,100 awards were ripped up, with another 2,700 kept. The administration will announce more changes in how the State Department and USAID deliver foreign assistance, reads a federal memo.

Among the litany of executive orders signed by U.S. President Donald Trump includes the halting of new foreign aid. Unless it serves the strategic goals of America, it’s getting cut.https://t.co/5k55PyLbJq

— Rebel News (@RebelNewsOnline) January 21, 2025

Disgruntled USAID workers allege U.S. President Donald Trump circumvented federal law and the U.S. Constitution by ripping up authorized spending.

Washington also eliminated 1,600 USAID positions last Sunday, with payments for past-due invoices up until January 24 expected in the coming weeks.

According to the Department of Justice, the Trump administration can suspend agreements while it reviews their compliance with federal policy under the “America First agenda.”

Unless it serves the strategic goals of America, the administration aims to cut all foreign aid. On Wednesday, a Secretary of State spokesperson confirmed 90% of contracts would not survive targeted cuts.

“The United States and American citizens have been some of the most generous people in the entire world,” a Trump policy adviser previously told Daily Mail. “But at this point, we have to understand that foreign policy is domestic policy, and if this is not aligned with our interests, then Uncle Sam should not be opening up his pocketbook any longer.”

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