USAID faces major cuts as 83% of programs cancelled, remaining shifts to State Dept

KATHMANDU, March 10: In a sweeping overhaul of U.S. foreign aid programs, US Secretary of State Marco Rubio announced that 83% of USAID programs are being terminated following a six-week review conducted by the Department of Government Efficiency (DOGE) led by Elon Musk. The move comes as part of broader reforms initiated by the Trump administration to realign government spending with national interests.

According to a report by Fox News, the review resulted in the cancellation of 5,200 contracts, amounting to "tens of billions of dollars" in funding. In an early Monday morning post on X, Rubio stated that these contracts were found to be either ineffective or detrimental to U.S. national interests.

"This is an overdue and historic reform," Rubio wrote, expressing his gratitude to DOGE for its efforts. Musk, responding to the post, acknowledged the challenges of the review process but emphasized its necessity, stating, "Good working with you. Tough but necessary."

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The remaining 18% of USAID programs, approximately 1,000 contracts, will now be overseen by the State Department. Rubio emphasized that the decision to shift control was made in consultation with the Congress.

The move has sparked political tensions, with reports of a heated exchange last week between Rubio and Musk during a Cabinet meeting attended by President Donald Trump. The New York Times reported that Trump defended Rubio, commending him for doing a "great job" in managing the transition. Trump later reaffirmed their strong working relationship in a post on Truth Social.

USAID has long been a target for Trump, who, upon assuming office, implemented a temporary halt on all U.S. foreign assistance programs pending a comprehensive review. Musk has been an outspoken critic of the agency, previously describing it as "beyond repair" and comparing its financial practices to illegal money laundering.

Meanwhile, legal challenges to the Trump administration's restructuring of USAID continue. The Supreme Court recently declined to block a lower court ruling that ordered the Trump administration to release $2 billion in foreign aid payments still owed under existing contracts.