US slashes overseas aid by over 90%, axing $54 billion in funding

The United States has imposed sweeping reductions on its overseas development and aid programs, slashing multi-year contracts by 92%—a cut amounting to $54 billion—as part of its America First policy

Desk Report

Publisted at 9:57 AM, Thu Feb 27th, 2025

United States has implemented a drastic reduction in its overseas development and aid programmes, slashing multi-year contracts by 92%—a cut totalling $54 billion—according to the State Department.

In a statement on Wednesday, a department spokesperson confirmed that the cuts resulted from a review process spearheaded by the United States Agency for International Development (USAID) leadership, with portions of the review personally overseen by Secretary Marco Rubio.

"At the conclusion of a process led by USAID leadership, including tranches personally reviewed by Secretary Rubio, nearly 5,800 awards with a remaining value of $54 billion were identified for elimination as part of the America First agenda—a 92% reduction," the spokesperson stated.

The move underscores a significant shift in US foreign policy priorities, aligning with Washington’s broader efforts to scale back international assistance in favour of domestic initiatives.

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