State Department End of USAID Contracts is a Wake-up Call

Secretary of State Marco Rubio has canceled 83% of USAID foreign aid programs following a comprehensive six-week review, marking a dramatic shift in America’s global assistance approach. According to a six-week review, these programs did not advance the national interests of the United States. The State Department will administer the remaining 18 percent of programs.

Massive Cuts to Foreign Aid Programs

Secretary of State Marco Rubio has implemented a sweeping overhaul of U.S. foreign aid policy by canceling 83% of all USAID programs effective March 10, 2025. The decision came after a six-week review determined that the vast majority of these programs did not align with American national interests. The cancellations affect 5,200 contracts involving tens of billions of dollars that had previously funded various development and humanitarian efforts around the world. This represents one of the most significant reductions in foreign aid in recent U.S. history.

The announcement is part of the Trump administration’s broader efforts to restructure government institutions and eliminate what they view as “deep state” elements within the federal bureaucracy. USAID staff worldwide have been placed on leave during the review process, with a reduction in force affecting approximately 1,600 U.S.-based positions. The remaining 18% of programs deemed valuable to American interests will continue but will be administered directly by the State Department, which the administration believes will ensure more effective oversight.

Judicial Support for the Administration’s Actions

The administration’s decision to place thousands of USAID workers on leave during the program review process faced legal challenges but was ultimately supported by the judiciary. A Trump-appointed judge ruled that the administration “deems it necessary to place thousands of workers on leave in order to review U.S.-backed foreign assistance.” This judicial decision provided legal backing for the administration’s approach to evaluating the effectiveness and strategic value of America’s foreign aid programs.

The review process examined how USAID spent its $72 billion global budget in fiscal year 2023. Critics of the agency have pointed to specific examples of ineffective spending, including over $3 billion sent to Mexico since 2008 to combat drug cartels. Despite this substantial investment, cartels have grown stronger during this period, raising questions about the effectiveness of such programs and whether they truly serve American interests and taxpayers.

Refocusing American Foreign Assistance

The administration has framed these cuts not as an abandonment of America’s global leadership role but as a strategic refocusing of resources toward programs that directly benefit U.S. interests. By concentrating on the 18% of programs that passed the review process, officials argue that American foreign assistance will become more targeted and effective. The State Department’s direct management of these remaining programs aims to create greater accountability and ensure that taxpayer dollars produce meaningful results aligned with national priorities.

“deems it necessary to place thousands of workers on leave to review U.S.-backed foreign assistance”—Trump-appointed judge

This dramatic reduction in foreign aid programs represents a significant shift in U.S. policy that will have far-reaching implications for America’s global engagement strategy. The move signals a clear prioritization of domestic concerns and a more selective approach to international development assistance. As the changes take effect, both supporters and critics will be watching closely to evaluate the impact on U.S. diplomatic influence and relationships with nations that have historically received substantial American aid.

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