The Trump administration has announced the termination of thousands of USAID foreign assistance grants and awards, according to the State Department. This decision significantly impacts the six-decade-old agency, effectively gutting its operations. The announcement was made just hours before a federal district court deadline, which required the Trump administration to restart payments on these grants. The government still owes over $1 billion for work completed prior to Trump's foreign aid freeze.
On Wednesday, the Trump administration sought intervention from the Supreme Court to vacate the lower court's order that mandated the resumption of funding for these programs. The administration argued that it could not meet the payment deadline set by the judge. Chief Justice John Roberts temporarily paused the order on Wednesday evening, providing the administration with additional time to make the necessary payments.
Pete Marocco, acting as the deputy administrator of USAID, stated to the lower court that each of USAID's grants had been meticulously reviewed. Secretary of State Marco Rubio decided to eliminate approximately 92% of the agency's grants. This includes cutting around 4,100 grants, resulting in a claimed total savings of nearly $60 billion. Contractors were informed of the termination through a memo from USAID's Office of Acquisition and Assistance, which stated that their awards were not aligned with Agency priorities and continuing these programs was not in the national interest.
Elisha Dunn-Georgiou, president and CEO of the Global Health Council, described the situation as dire. She highlighted that even programs granted waivers, including those providing life-saving HIV medications, have received termination notices. A humanitarian official, speaking anonymously, referred to the situation as a "global health massacre." Aid groups and advocates have raised alarms, warning that cutting USAID's programs could lead to loss of life, particularly in crisis zones such as Sudan, where over 1,000 food aid kitchens have closed amid widespread starvation.
In the court filing, Marocco noted that 500 of USAID's grants were retained, though he did not specify which programs would continue. USAID has been instrumental in supporting humanitarian and development projects in over 120 countries, working to prevent the spread of disease and alleviate poverty. The State Department stated that the eliminations followed a review of foreign assistance aimed at ensuring taxpayer dollars were used to make America stronger, safer, and more prosperous.
Gabrielle Emanuel contributed to this report.
