Secretary of State Cancels Over 80% of USAID Programs After Six-Week Review

What Happened?

The Trump administration has canceled more than 80% of all U.S. Agency for International Development (USAID) programs following a six-week review.

U.S. Secretary of State Marco Rubio took to social platform X on Monday and announced the cancellation of the 5,200 contracts – part of efforts to reduce federal spending.

He added that 83% of the agency’s spending involved 'billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States.'

In consultation with Congress, Rubio says the Trump administration intends for the remaining programs (approximately 1,000) to be administered more effectively under the State Department.

'Thank you to DOGE and our hardworking staff who worked very long hours to achieve this overdue and historic reform,' said Rubio.

President Donald Trump's advisor Elon Musk stated the moves were tough but necessary.

'The important parts of USAID should always have been with Dept. of State,' Musk said on X.

Musk and Rubio joined Trump for dinner at Mar-a-Lago on Saturday night after the two reportedly battled last week at a Cabinet meeting over State Department cuts.

Why it Matters

The announcement comes after the Supreme Court rejected a key request that advised the Trump administration to pay $2 billion to USAID contractors.

An emergency application filed by the Justice Department was rejected in a 5-4 vote after Trump put the funds on hold with a previous executive order.

U.S. District Judge Amir Ali had issued a series of rulings that demanded the government unfreeze funds for USAID.

A divided Supreme Court upheld the lower court order but did not immediately say when the money must be released.

The White House could reportedly continue to dispute the issue in lower courts.

The Trump administration has unleased sweeping actions that instructed federal agencies to develop plans to eliminate employee positions.

Trump has referred to these moves as 'large-scale reductions in force' and has called on department heads to submit the first phase of plans by March 13.

U.S. District Judge Carl Nichols removed his temporary block to make way for the mass USAID layoffs.

Federal departments will have limited power to hire more staffers without DOGE being coordinated as part of Trump's executive order.

Thousands of probationary employees have already been laid off.

Exempted from these moves are law enforcement, national security, public safety, military positions, immigration enforcement, and U.S. Postal Service positions.

A former USAID official warned that cutting the agency’s programs could lead to large-scale issues surrounding national security and lead to preventable deaths.

Grants have helped with infant nutrition assistance, disease prevention, and other vital treatments.

DOGE estimates it has saved $105 billion in spending so far.

How it Affects You

The Trump administration and DOGE have set ambitious goals of cutting at least $1 trillion from the $6.7 trillion federal budget.

As many as 200,000 federal employees are still set to be affected by these mass cuts.

The Trump administration has maneuvered around orders to unfreeze certain funding.

Legal challenges may continue until constitutionality is solidified.

These actions have reportedly sparked concerns about whether Congress can require a president to spend money.

State governments and nonprofit agencies may ultimately find clarity once that question is answered should it reach a higher court.