Trump Administration Slashes USAID Funding: A Ball of Worms?

The Trump administration is making significant cuts to the U.S. Agency for International Development (USAID), potentially eliminating nearly 15,000 grants worth $60 billion, according to internal documents. This represents about 90% of foreign aid contracts, a move following a State Department spending review. USAID has been a target for President Trump, who has long criticized overseas spending, questioning its benefit to American taxpayers and even referring to agency leaders as "radical lunatics." Republicans have echoed these sentiments, deeming the agency wasteful and advocating for its integration into the State Department. Democrats, however, argue that USAID is crucial for saving lives, stabilizing economies, and advancing U.S. interests abroad. The administration plans to eliminate 5,800 of 6,200 multi-year USAID contract awards, amounting to a $54 billion reduction. Additionally, 4,100 of 9,100 State Department grants are being cut, saving $4.4 billion, according to an Associated Press review of a State Department memo. This action was reportedly spurred by a federal court order that mandated the lifting of the Trump administration's month-long block on foreign aid funding by Wednesday. The State Department memo stated that officials were "clearing significant waste stemming from decades of institutional drift" and plan further changes to USAID and State Department foreign assistance delivery "to use taxpayer dollars wisely to advance American interests." Supreme Court Justice John Roberts temporarily halted a federal judge's order that would have required the Trump administration to release around $2 billion in foreign aid funds to contractors by midnight Wednesday. This decision followed the administration's emergency request to block the USAID funding release, citing an inability to comply with the judge's order. Established in the early 1960s, USAID's mission is to deliver aid globally, focusing on impoverished and underdeveloped regions. Operating in 60 nations with approximately 10,000 employees, the agency primarily contracts with third-party organizations for on-the-ground work, as noted in a BBC report. Criticism of the agency has grown, with both Trump and Elon Musk's Department of Government Efficiency (DOGE) aiming to eliminate waste, fraud, and abuse. Musk likened the agency to "not an apple with a worm in it, but just a ball of worms," suggesting it's "beyond repair." Trump has initiated a 90-day pause on foreign aid and intends to reduce USAID staff to fewer than 300 from the current 8,000. Secretary of State Marco Rubio has been appointed as the acting director of USAID. Sen. Joni Ernst, R-Iowa, the Senate DOGE Caucus Chairwoman, recently highlighted questionable USAID-funded projects, including $20 million for an Iraqi Sesame Street show. Additional examples of potentially wasteful spending have surfaced, such as over $900,000 to a "Gaza-based terror charity" and $1.5 million for a program promoting diversity and inclusion in Serbian workplaces.