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Friday, Mar 07, 2025
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US Significantly Reduces Overseas Development Budgets by 92%
The State Department reveals a substantial cutback in foreign aid initiatives, focusing on multi-year contracts and grants.
The United States has implemented a significant cut to its international development and aid initiatives, with the State Department reporting a staggering 92 percent decrease, which translates to $54 billion.
This decision follows an executive order issued by President Donald Trump on his first day in office, which established a 90-day suspension of all U.S. foreign aid.
The suspension aimed to facilitate a thorough review of overseas spending and to eliminate programs that do not conform to Trump's 'America First' agenda.
As part of this review, the U.S. Agency for International Development (USAID) concentrated on long-term foreign assistance contracts, leading to the identification and cancellation of nearly 5,800 awards amounting to $54 billion.
A spokesperson from the State Department indicated that the review was spearheaded by USAID leadership, with direct involvement from Secretary Marco Rubio in evaluating the contracts.
Additionally, the review encompassed more than 9,100 grants associated with foreign assistance, collectively valued over $15.9 billion.
Ultimately, 4,100 grants, totaling around $4.4 billion, were earmarked for elimination, resulting in a 28 percent reduction in this sector.
The State Department characterized these reductions as 'commonsense eliminations' designed to enable the agency to focus on the remaining programs, enhance operational efficiencies, and align future assistance more closely with the administration's goals.
Importantly, certain vital programs remained unaffected, such as those providing food aid, medical care for diseases like HIV and malaria, and support for countries including Haiti, Cuba, Venezuela, and Lebanon.
In a related development, a federal judge recently instructed the Trump administration to restore all aid within two days, following the administration's earlier neglect of an existing court ruling.
Following this, the Trump administration sought to pause the ruling, which was granted by U.S. Supreme Court Chief Justice John Roberts, according to reports from various media sources.
USAID, established in 1961 after congressional endorsement, had previously employed over 10,000 staff members before the cuts.
The recent budgetary changes have prompted significant staff reductions, with the agency confirming the layoff of 1,600 employees and placing the majority of the remaining staff on administrative leave.
During his presidential campaign, Trump pledged to decrease federal spending and bureaucracy, a mission he has assigned to prominent supporter and billionaire Elon Musk through the newly established Department of Government Efficiency (DOGE).
This decision follows an executive order issued by President Donald Trump on his first day in office, which established a 90-day suspension of all U.S. foreign aid.
The suspension aimed to facilitate a thorough review of overseas spending and to eliminate programs that do not conform to Trump's 'America First' agenda.
As part of this review, the U.S. Agency for International Development (USAID) concentrated on long-term foreign assistance contracts, leading to the identification and cancellation of nearly 5,800 awards amounting to $54 billion.
A spokesperson from the State Department indicated that the review was spearheaded by USAID leadership, with direct involvement from Secretary Marco Rubio in evaluating the contracts.
Additionally, the review encompassed more than 9,100 grants associated with foreign assistance, collectively valued over $15.9 billion.
Ultimately, 4,100 grants, totaling around $4.4 billion, were earmarked for elimination, resulting in a 28 percent reduction in this sector.
The State Department characterized these reductions as 'commonsense eliminations' designed to enable the agency to focus on the remaining programs, enhance operational efficiencies, and align future assistance more closely with the administration's goals.
Importantly, certain vital programs remained unaffected, such as those providing food aid, medical care for diseases like HIV and malaria, and support for countries including Haiti, Cuba, Venezuela, and Lebanon.
In a related development, a federal judge recently instructed the Trump administration to restore all aid within two days, following the administration's earlier neglect of an existing court ruling.
Following this, the Trump administration sought to pause the ruling, which was granted by U.S. Supreme Court Chief Justice John Roberts, according to reports from various media sources.
USAID, established in 1961 after congressional endorsement, had previously employed over 10,000 staff members before the cuts.
The recent budgetary changes have prompted significant staff reductions, with the agency confirming the layoff of 1,600 employees and placing the majority of the remaining staff on administrative leave.
During his presidential campaign, Trump pledged to decrease federal spending and bureaucracy, a mission he has assigned to prominent supporter and billionaire Elon Musk through the newly established Department of Government Efficiency (DOGE).
