WASHINGTON – The Trump administration has officially shut down over 80% of programs and terminated 5,200 contracts at the US Agency for International Development (USAID), Secretary of State Marco Rubio announced Monday.
Following a six-week review by the State Department, the cancellations were finalized, with Rubio stating that the affected contracts had “spent tens of billions of dollars in ways that did not serve, and in some cases even harmed, US national interests.”
The remaining 1,000 programs will now be managed more directly under the State Department, with oversight from the Department of Government Efficiency (DOGE), led by billionaire Elon Musk.
President Donald Trump had already ordered a 90-day freeze on all foreign aid payments upon taking office, leading to widespread disruption. Many aid organizations have reported operational chaos, with thousands of employees placed on leave or dismissed.
Meanwhile, US foreign aid groups have taken legal action against the administration, claiming they are owed more than $671 million for completed work. A federal court has mandated the government to release the funds by Monday. However, despite some reversals of initial cuts, aid groups report that restored funding has yet to be disbursed.