The administration of US President Donald Trump has announced that it is cutting off more than 90% of foreign aid from the United States Agency for International Development (USAID), according to a lawsuit filed on February 26.
Points of attention
- The Trump administration has cut off more than 90% of foreign aid from USAID, impacting thousands of grants and contracts.
- Approximately 5,800 USAID grants were terminated, leaving only around 500 grants with a total value of $57 billion.
- The funding freeze and review of aid have stalled aid programs globally, causing significant challenges for nonprofits and contractors.
USAID cuts 90% of aid worldwide
In total, approximately 5,800 USAID grants were terminated, while more than 500 USAID grants remained in effect. The total maximum value of the grants retained is approximately $57 billion, the Trump administration said in a statement.
The document also states that in addition to the termination of USAID grants, "about 4,100 government grants were terminated and about 2,700 government grants were retained."
Later on February 26, the administration explained in a statement that "there are still 297 contracts remaining that need to be reviewed."
CNN writes that the sharp reduction in foreign aid is a blow to the work of nonprofits and contractors. Aid programs around the world have ground to a halt due to a massive funding freeze and the review of billions of dollars in aid.
This came after the Trump administration either put most of USAID's staff on leave or fired them.
The administration's update was filed in response to a lawsuit challenging the blanket suspension of foreign aid.
According to the document, US Secretary of State Marco Rubio on Wednesday "made the final decision on each award on an individual basis, affirmatively choosing to either maintain the award or terminate it in accordance with the terms of the document or an independent legal body as not being in the national interest and foreign policy of the United States."
However, the plaintiffs in that lawsuit on Wednesday denied the claim that Rubio personally reviewed all of the termination decisions, saying that "it would be impossible for one person or even a group of people to meaningfully review all of these contracts and decisions in such a short period of time."
