Trump Slashes U.S. Foreign Aid by 92%, Cutting $54 Billion in Global Assistance

The United States has made significant reductions to its overseas development and aid programs, with a dramatic $54 billion cut, which represents a 92% reduction in multiyear contracts, according to a statement from the US State Department.

This decision came after President Donald Trump’s executive order, signed shortly after his inauguration on January 20, 2017, which froze all foreign aid for 90 days. The freeze allowed for a comprehensive review of all foreign aid initiatives by senior political leaders, focusing on identifying programs that did not align with the administration's "America First" agenda.

As part of this review, the United States Agency for International Development (USAID) scrutinized its multiyear contracts and grants, eliminating the vast majority of them. Specifically, the review led to the identification of 5,800 awards with a combined value of $54 billion, which were deemed unnecessary and were subsequently targeted for elimination. This represented a dramatic 92% reduction in the total value of foreign assistance commitments.

The review process also extended to more than 9,100 grants associated with foreign assistance programs, which were valued at more than $15.9 billion. At the end of the review, 4,100 of these grants, worth nearly $4.4 billion, were also selected for elimination, resulting in a 28% reduction in grant funding.

A spokesperson for the State Department stated that these cuts would allow the relevant bureaus and their contracting and grant officers to focus on remaining programs, streamline operations, and tailor future initiatives more closely to the administration’s "America First" priorities. The programs that remained untouched were those that provided critical services, such as food assistance, medical treatments for diseases like HIV and malaria, and support for vulnerable countries, including Haiti, Cuba, Venezuela, and Lebanon. "Trump Slashes U.S. Foreign Aid by 92%, Cutting $54 Billion in Global Assistance"

This sweeping reduction of foreign aid marked a significant shift in the United States' approach to international assistance, aligning with President Trump’s broader vision of reducing American financial involvement in foreign affairs and prioritizing domestic issues.