The Trump administration has announced the cancellation of 83% of programs under the US Agency for International Development (USAID), with the remaining initiatives set to be transferred to the State Department, Secretary of State Marco Rubio confirmed on Monday.
Rubio, in a post on X from his personal account, stated that after a six-week review, the administration had decided to terminate 5,200 USAID contracts, citing that they had wasted tens of billions of dollars and, in some cases, harmed US national interests. He did not provide specific details on the terminated contracts.
The remaining 1,000 programs (18%) will now be administered under the State Department, a move aimed at improving efficiency, according to Rubio. He credited the Musk-backed DOGE office, which has been actively placing officials across federal agencies and implementing aggressive federal spending cuts, for facilitating the reform.
Billionaire Elon Musk, who has been a vocal critic of USAID, responded to Rubio’s announcement, calling the decision "tough but necessary." He added that USAID’s core functions should have always been under the State Department, reiterating his past remarks that the agency should be eliminated.
A court filing in late February revealed that nearly 5,800 USAID awards had been terminated, with Rubio making final decisions on a case-by-case basis. While the administration claimed these cuts aligned with U.S. foreign policy and national interests, humanitarian officials described the decision as a “bloodbath,” noting that many lifesaving programs had been abruptly discontinued.
The rollout of the terminations reportedly caused confusion, with some canceled contracts later being reinstated. CNN has sought clarification from the State Department regarding discrepancies between the figures in Rubio’s post and the court filing.
USAID, which allocates billions of dollars annually to combat poverty, treat diseases, and respond to humanitarian crises, has largely halted operations due to these sweeping cuts. The Trump administration had long accused the agency of misuse and fraud, justifying the dismantling of its programs.
Earlier in February, Rubio, serving as acting administrator of USAID, informed Congress that he had directed Deputy Pete Marocco to review and reorganize the agency’s activities. His letter to Capitol Hill indicated that USAID may be fully integrated into the State Department or even abolished entirely, in accordance with the law.
Legal challenges have been filed against the administration’s foreign aid freeze and the dismantling of USAID. While a federal judge has allowed staff terminations and program suspensions, another court ruled that the administration must pay out nearly $2 billion in unpaid humanitarian work fees. The Supreme Court upheld this decision but has not specified a timeline for disbursement.
