The U.S. government has officially terminated 83% of programs run by the United States Agency for International Development (USAID) and canceled 5,200 contracts previously awarded to various organizations.
This drastic decision follows weeks of speculation after the suspension of all foreign aid and the issuance of a stop-work order on USAID projects.
Massive Cuts in USAID Programs
U.S. Secretary of State Marco Rubio confirmed that the Department of State, in collaboration with Elon Musk’s Department of Government Efficiency (DOGE), conducted a six-week review before implementing these cuts.
“The 5,200 contracts that are now canceled spent tens of billions of dollars in ways that did not serve—and in some cases even harmed—the core national interests of the United States,” Rubio stated.
He further explained that the remaining 18% of programs, approximately 1,000, will be placed under the direct administration of the State Department for more effective oversight.
Global Impact of the Aid Cuts
The termination of USAID programs will have significant repercussions, particularly for international initiatives focused on healthcare, education, and humanitarian relief. Many projects that were temporarily suspended will now be permanently shut down.
Developing nations, including those in Africa, have expressed concern over the loss of critical funding. In Nigeria, several clinics and research centers have already closed following President Donald Trump’s executive order on January 20, cutting off foreign assistance.
Stock Market Reacts as Recession Fears Grow
Meanwhile, U.S. financial markets took a hit as concerns over the economic fallout from Trump’s policies deepened. The S&P 500 dropped more than 3% on Monday, marking its worst day of the year.
This decline follows Trump’s refusal to rule out a potential recession amid ongoing trade disputes. The Canadian province of Ontario responded by imposing retaliatory tariffs on energy exports to Michigan, Minnesota, and New York. Additionally, China escalated its trade war with the U.S. by placing new tariffs on American agricultural products.
What’s Next?
As the U.S. government shifts foreign aid policy and trade relations remain uncertain, global stakeholders and affected nations will be closely watching for further developments.