A worker removes the U.S. Agency for International Development sign on their headquarters on February 07, 2025 in Washington, DC. President Donald Trump and Elon Musk's Department of Government Efficiency (DOGE) abruptly shutdown the U.S. aid agency earlier this week leaving thousands unemployed and putting U.S. foreign diplomacy and aid programs in limbo. Kayla Bartkowski/Getty Images/AFP 

WASHINGTON - The United States has dramatically cut the budgets of overseas development and aid programs, with multi-year contracts pared down by 92 percent, or $54 billion, the State Department said Wednesday.

After his inauguration on January 20, US President Donald Trump signed an executive order demanding a freeze on all US foreign aid for 90 days, during which time it would undergo a review by senior political leadership to cut spending on programs that did not align with his "America First" agenda.

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The review in part targeted multi-year foreign assistance contracts awarded by the US Agency for International Development (USAID), with the vast majority eliminated during its course.

"At the conclusion of a process led by USAID leadership, including tranches personally reviewed by Secretary (Marco) Rubio, nearly 5,800 awards with $54 billion in value remaining were identified for elimination as part of the America First agenda -- a 92 percent reduction," a State Department spokesperson said in a statement.

The review also looked at more than 9,100 grants involving foreign assistance, valued at more than $15.9 billion.

At the conclusion of the review, 4,100 grants worth almost $4.4 billion were targeted to be eliminated, a 28 percent reduction.

"These commonsense eliminations will allow the bureaus, along with their contracting and grants officers, to focus on remaining programs, find additional efficiencies, and tailor subsequent programs more closely to the Administration's America First priorities," the State Department spokesperson said.

Programs that were not cut included food assistance, life-saving medical treatments for diseases like HIV and malaria, and support for countries including Haiti, Cuba, Venezuela, and Lebanon, among others, the spokesperson said.

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