Trump admin says it's cutting 90% of USAID foreign aid contracts

The Trump administration said on Feb. 26 that it is terminating over 90% of the U.S. Agency for International Development's (USAID) foreign aid contracts, cutting $60 billion in foreign assistance, the U.S. media reported.

The step comes after U.S. President Donald Trump's administration halted almost all foreign aid for 90 days for a review amid efforts to shutter the aid agency and merge it under the State Department.

The cuts will include 5,800 of 6,200 USAID contracts, purportedly saving $54 billion, and 4,100 of 9,100 State Department grants, for a cut of $4.4 billion, Politico reported.

Since Russia launched its full-scale invasion of Ukraine, USAID has provided $2.6 billion in humanitarian aid, $5 billion in development assistance, and more than $30 billion in direct budget support to Kyiv.

The agency has funded school reconstruction, bomb shelters, critical energy repairs, and civil society initiatives.

The fate of the remaining USAID projects is to be determined in ongoing court battles with the administration.

The White House has accused the agency of pushing a "liberal agenda" and widespread waste, despite foreign aid making up just 1% of the federal budget.

Elon Musk, Trump's ally who oversees the new Department of Government Efficiency (DOGE), has led the charge against USAID, laying off staff and attacking the agency in public, often making baseless or false claims about its work.

USAID cuts not only marked a significant realignment of U.S. foreign policy but also threatened various Ukrainian organizations and projects across multiple sectors reliant on U.S. funding.

Ukraine is in talks with private and EU partners to replace funding sources for key projects in energy infrastructure, veterans' affairs, and more.