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Drastic cuts eliminate over 90% of USAID contracts, disrupt global aid programs, and spark legal battles as nonprofits and businesses fight to restore funding
The Trump administration has made sweeping cuts to U.S. foreign aid, eliminating over 90% of USAID’s contracts and reducing overall assistance by $60 billion. This dramatic move significantly scales back America’s role in global development and humanitarian work.
The cuts leave only a small portion of USAID projects intact, making it harder for legal challenges to stop the administration’s actions. A memo obtained by the Associated Press, along with recent court filings, reveals that the administration sees these cuts as a way to eliminate what it calls inefficiencies while focusing on policies that align with American interests.
Supreme Court Blocks Lower Court’s Order to Restore Aid
Late Wednesday, the Supreme Court temporarily blocked a lower court ruling that had ordered the Trump administration to release billions of dollars in frozen foreign aid by midnight. This decision sheds light on the administration’s aggressive approach to pulling the U.S. back from foreign assistance, a major shift from the long-held policy of using aid to stabilize foreign nations, support economic growth, and build strategic alliances.
The funding freeze has already disrupted thousands of U.S.-backed aid programs across the world. Many of these programs had been credited with saving millions of lives, such as USAID’s initiatives to control Ebola outbreaks and provide HIV/AIDS treatments in Africa. Despite their success, these programs are now being defunded.
Trump and Musk’s Push to Shrink Foreign Aid
President Trump, with strong support from his close ally Elon Musk, has been a vocal critic of U.S. foreign aid. Both argue that many USAID programs push liberal agendas and waste taxpayer money. On January 20, Trump ordered a 90-day review of all foreign aid programs to determine which ones, if any, should continue. At the same time, he froze all foreign aid funds, bringing global assistance to a sudden halt.
To enforce these cuts, Musk’s newly created Department of Government Efficiency has fired USAID staff and placed many others on forced leave, leaving the agency in a state of uncertainty.
Lawsuits and Accusations of Unlawful Cuts
Nonprofit organizations that previously held USAID contracts have filed lawsuits against the administration, accusing officials of cutting programs too quickly and without proper review. Internal emails from USAID show that staff were warned to expect further contract cancellations.
Adding to the controversy, many USAID contractors had already completed their work before the funding freeze and are now owed billions of dollars. However, the Trump administration has officially canceled their contracts, preventing them from being paid. Critics argue that this was a deliberate move to avoid complying with court orders that required the government to restore funding.
Senator Chris Murphy (D-Conn.), a member of the Senate Foreign Relations Committee, has accused the administration of using loopholes to bypass both Congress and the courts. He argues that Trump’s team rushed to cut aid before legal challenges could force them to reverse course.
Widespread Backlash from Global Leaders and Experts
The administration’s drastic move has sparked outrage from humanitarian organizations, global businesses, and former government officials. The U.S. Global Leadership Coalition, a prominent foreign policy group, warned that the cuts could harm America’s national security by weakening efforts in counterterrorism, global health, food security, and international diplomacy.
Despite this backlash, Secretary of State Marco Rubio has officially approved the cuts. In total, the Trump administration is eliminating 5,800 out of 6,200 USAID multiyear contracts, amounting to $54 billion in reductions. Additionally, the State Department is cutting 4,100 out of 9,100 grants, reducing spending by another $4.4 billion.
The Government’s Rush to Avoid Court-Ordered Payments
A leaked State Department memo, first reported by the Washington Free Beacon, suggests that the urgency behind these cuts was directly tied to a federal court order. The court had ruled that frozen aid funds needed to be released by the end of the day Wednesday. Instead of complying, the Trump administration rushed to terminate contracts before the deadline, ensuring the funds wouldn’t be restored.
Despite repeated warnings from the judge overseeing the case, the administration has only processed a small fraction of the required payments. So far, only a few million dollars have been paid out—far less than the billions that the court had ordered.
Supreme Court Puts Judge’s Ruling on Hold
U.S. District Judge Amir H. Ali had ruled in favor of nonprofits and contractors suing the administration, ordering the government to unfreeze the aid funds. However, the Supreme Court, led by Chief Justice John Roberts, has temporarily blocked that ruling while it considers the case.
Plaintiffs in the case now have until noon Friday to respond to the administration’s emergency appeal. Meanwhile, Trump’s legal team has also filed another emergency request in a separate case, arguing that a lower court wrongly reinstated a federal watchdog official whom Trump had previously fired.
What Happens Next?
The Supreme Court’s decision in the coming days will determine whether the aid cuts move forward or whether the lower court’s order to restore funding will stand. Until then, thousands of aid programs remain suspended, USAID contractors remain unpaid, and the future of U.S. foreign assistance remains uncertain.