Trump Administration Delivers Historic Reform: Cancels 83% of USAID Contracts

Doug Burgum, US secretary of the interior, from left, Marco Rubio, US secretary of state, and US President Donald Trump during a cabinet meeting at the White House in Washington, DC, US, on Wednesday, Feb. 26, 2025. Elon Musk's demand that more than two million federal employees defend their work is facing pushback from other powerful figures in the Trump administration, in a sign that the billionaire's brash approach to overhauling the government is creating division. Photographer: Al Drago/Bloomberg via Getty Images

In a bold and decisive move to refocus U.S. foreign aid on America’s core national interests, the Trump administration announced on March 10, 2025, that it is canceling 83% of contracts under the U.S. Agency for International Development (USAID). Secretary of State Marco Rubio revealed that 5,200 out of 6,200 USAID contracts have been terminated, marking what he called an “overdue and historic reform.” The remaining 1,000 contracts will be absorbed by the State Department, which took over USAID last month as part of President Donald Trump’s broader effort to streamline government operations and eliminate waste.

This decision follows a rigorous six-week review ordered by President Trump on his first day in office. The review, initially planned to take 90 days, was completed ahead of schedule, demonstrating the administration’s commitment to efficiency and accountability. Secretary Rubio praised the Department of Government Efficiency (DOGE), led by visionary entrepreneur Elon Musk, for its role in implementing these reforms. “The 5,200 contracts that are now cancelled 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 wrote on X, formerly known as Twitter.

A New Era of Accountability in Foreign Aid

President Trump has long been critical of USAID, accusing it of being mismanaged and wasteful. In a statement earlier this year, he called the agency “beyond repair” and run by “radical left lunatics.” Elon Musk, who heads DOGE, echoed these sentiments, describing USAID as a bloated bureaucracy in need of drastic reform. DOGE, created by an executive order signed by Trump on his first day in office, has been tasked with eliminating government waste and ensuring taxpayer dollars are spent wisely.

The administration’s review of USAID contracts identified billions of dollars in savings, with Rubio noting that the cuts to 5,800 multi-year projects are worth an estimated $54 billion. “Thank you to DOGE and our hardworking staff who worked very long hours to achieve this overdue and historic reform,” Rubio posted on X. He emphasized that the remaining 1,000 contracts would be administered “more effectively” under the State Department, ensuring that U.S. foreign aid aligns with national priorities.

Protecting American Interests While Supporting Global Needs

Critics of the administration’s decision have raised concerns about the impact on global health and humanitarian programs. However, Secretary Rubio and the Trump administration have made it clear that the reforms are designed to protect American interests while still providing critical aid where it matters most. In a memo obtained by NPR, the State Department indicated that food assistance initiatives and healthcare programs, such as those targeting tuberculosis, HIV, and malaria, would be preserved under the new structure.

“Tough, but necessary. Good working with you,” Elon Musk replied to Rubio’s post on X, underscoring the collaborative effort between DOGE and the State Department to achieve these reforms. Musk has been a key figure in the administration’s push to overhaul USAID, bringing his expertise in efficiency and innovation to the task.

Addressing Misinformation and Fear-Mongering

Despite the administration’s clear rationale for the reforms, some critics have attempted to spread fear about the potential consequences of the cuts. Nicholas Enrich, acting assistant administrator for global health at USAID, drafted a series of memos warning of dire outcomes, including increased deaths from malaria, tuberculosis, and malnutrition. However, these projections have not been peer-reviewed or confirmed by outside experts, and the administration has dismissed them as exaggerated and politically motivated.

The State Department declined to comment on the accuracy of Enrich’s estimates or his current status at USAID, stating that it does not discuss personnel matters. Instead, the administration has focused on the positive aspects of the reforms, highlighting the billions of dollars saved and the improved efficiency of U.S. foreign aid programs.

A Strong Partnership Between Rubio and Musk

Reports of tension between Secretary Rubio and Elon Musk have been dismissed by the White House as “fake news.” President Trump took to Truth Social to set the record straight, writing, “ELON AND MARCO HAVE A GREAT RELATIONSHIP. ANY STATEMENT OTHER THAN THAT IS FAKE NEWS!!!” The president remains enthusiastic about DOGE’s mission and has praised Musk’s work in driving government efficiency.

During a recent cabinet meeting, Trump reaffirmed his support for DOGE while clarifying that cabinet appointees would have the final say on hiring and spending decisions, with DOGE serving in an advisory role. This adjustment followed a series of missteps by DOGE, including the temporary firing and rehiring of employees working on critical programs like nuclear weapons maintenance and health services for 9/11 survivors. Despite these challenges, the administration remains committed to DOGE’s mission of eliminating waste and improving government operations.

Legal Challenges and the Path Forward

The administration’s reforms have faced legal challenges, with critics attempting to block the cancellation of USAID contracts. Last week, the Supreme Court declined to halt a lower court order requiring the Trump administration to unfreeze nearly $2 billion in foreign aid funding. This decision could allow organizations to seek reimbursements for work already completed under USAID contracts, but it does not undermine the broader reforms being implemented by the administration.

As the State Department takes over the remaining USAID programs, the focus will be on ensuring that U.S. foreign aid is effective, efficient, and aligned with national interests. Secretary Rubio has pledged to work closely with Congress to administer the remaining programs in a way that maximizes their impact while minimizing waste.

A Bold Vision for the Future

The Trump administration’s decision to cancel 83% of USAID contracts represents a bold step toward redefining America’s role in global aid. By prioritizing efficiency, accountability, and national interests, the administration is ensuring that taxpayer dollars are spent wisely and that U.S. foreign aid delivers real results. While critics may continue to spread fear and misinformation, the facts are clear: these reforms are long overdue, and they will benefit both the American people and those around the world who rely on responsible and effective aid.

As President Trump and his team continue to deliver on their promises, the world is witnessing a new era of American leadership—one that puts America first while still extending a helping hand to those in need. “The important parts of USAID should always have been with Dept of State,” Musk noted, capturing the essence of the administration’s vision: a leaner, more focused approach to foreign aid that serves both American interests and global humanitarian goals.