US NewsTrump's USAID cuts slash 92% contracts, stir global impact

Trump's USAID cuts slash 92% contracts, stir global impact

The administration of President Donald Trump announced on Thursday a near-total elimination of aid and subsidy programs managed by USAID, which is now under the control of the State Department.

President of the USA Donald Trump
President of the USA Donald Trump
Images source: © Getty Images | Bloomberg

The announcement states that "during the review of USAID operations conducted under the personal supervision of the U.S. Secretary of State, nearly 5,800 contracts worth $54 billion were evaluated and deemed suitable for elimination under the America First agenda." This constitutes 92 percent of all these contracts.

The White House announces the termination of these programs

Additionally, according to the announcement, it was decided to eliminate 28 percent of American foreign subsidies, amounting to $4.4 billion.

Media outlets in Latin America reported on Thursday that freezing USAID programs was one of Donald Trump's first actions after assuming the presidency. They highlighted that this decision poses a significant threat to implementing many investment programs in countries across the region, which are vital for their economic development and the living standards of their populations.

In 2023, Latin America was projected to receive $1.7 billion in global aid through USAID.

Haiti, the poorest country in the region, suffering from a civil war led by gangs, was set to receive $316 million this year through USAID.

Trump halted funding; concerns over the consequences

The British daily Guardian noted at the beginning of February that U.S. President Donald Trump's decision to cease funding humanitarian aid led, among other impacts, to the closure of food warehouses in Sudan and a halt in malaria vaccine research. According to the newspaper, these actions have exacerbated the crisis in some of the world's poorest regions.

USAID, an independent federal agency since 1961, is the largest state aid organization globally. Its budget exceeds $50 billion, representing 0.7 percent of the federal budget. The agency operates in over 100 countries worldwide.

After protests from organizations and humanitarian activists, U.S. Secretary of State Marco Rubio exempted the most urgent humanitarian programs, including the PEPFAR AIDS drug distribution program, from these cuts.

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