In a sweeping shift in US foreign policy, the United States has officially canceled 83% of all programs run by the US Agency for International Development (USAID), according to Secretary of State Marco Rubio. This move follows a six-week review mandated by President Donald Trump’s executive order, signed earlier this year, which froze all foreign aid pending an assessment of its alignment with US national interests.
Announcing the decision on X (formerly Twitter), Rubio revealed that 5,200 contracts, representing tens of billions of dollars, have been terminated. He claimed these programs did not serve, and in some cases harmed, the core national interests of the US. However, he did not specify which programs were canceled or which would continue. The remaining approximately 1,000 programs will now be managed directly under the State Department in consultation with Congress, in what Rubio described as a push to ensure greater effectiveness and alignment with foreign policy goals.
The drastic cutback aligns with Trump’s long-held “America First” agenda, which views foreign aid as a drain on US resources. While past administrations emphasized humanitarian leadership, Trump and his allies argue that such assistance has often been wasteful and ineffective in advancing American priorities.
Rubio also acknowledged the role of the Department of Government Efficiency (DOGE), an advisory body led by billionaire Elon Musk, in achieving what he called an “overdue and historic reform.” Musk, who has led a broader campaign of government downsizing and layoffs, responded to Rubio’s announcement, saying, “Tough, but necessary. Good working with you. The important parts of USAID should always have been with Dept of State.”
However, the consequences of this decision are already being felt. According to USAID’s official data, the agency was previously responsible for delivering aid in over 120 countries, supporting disaster recovery, poverty alleviation, health initiatives, and democratic reforms. Before the freeze, USAID also managed a workforce of over 10,000 employees. But since February, 1,600 employees have been laid off, and 4,200 placed on leave, with reports suggesting that total staff may be reduced to fewer than 300 — effectively crippling the agency’s operations.
These actions have triggered significant backlash. Hundreds of American diplomats from both the State Department and USAID signed a letter condemning the cuts, warning that terminating foreign aid without proper review “jeopardizes partnerships with key allies, erodes trust, and creates openings for adversaries to expand their influence.”
Critics, including Senator Bernie Sanders, have warned that the cuts could result in “millions of preventable deaths,” especially in vulnerable regions that rely heavily on US assistance for basic needs like food, healthcare, and clean water.
In 2023 alone, the US provided $72 billion in global aid, accounting for 42% of all humanitarian assistance tracked by the United Nations, covering efforts such as HIV/AIDS treatment, women’s health in conflict zones, energy security, and anti-corruption programs. The dismantling of USAID threatens to leave a significant gap in global aid, undermining international health and development goals.
As one of the largest foreign aid overhauls in modern US history, this decision reflects a deep reorientation of US priorities — but also raises serious humanitarian and geopolitical concerns, with unpredictable consequences for global stability.
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