The Trump administration has officially terminated the majority of U.S. foreign aid contracts, sparking legal battles and concerns over global humanitarian efforts. This decision, revealed in a court filing on Wednesday, comes as the government continues to challenge a federal judge’s order to release previously frozen aid funds.
Thousands of Foreign Aid Projects Canceled
In its latest filing, the administration stated that the U.S. Agency for International Development (USAID) has finalized decisions to cancel nearly 5,800 awards, while retaining about 500. Similarly, the State Department has cut around 4,100 awards, keeping approximately 2,700 intact.
This mass termination follows a 90-day pause on all foreign aid, which former President Donald Trump implemented on his first day back in office. The decision has disrupted critical relief programs worldwide, jeopardizing access to life-saving food and medical aid.
Legal Battle Over Frozen Funds
Despite a temporary restraining order issued on February 13 by U.S. District Judge Amir Ali, the administration has kept most foreign aid payments frozen. The judge had mandated the release of these funds, citing potential irreparable harm to organizations dependent on U.S. aid.
The Trump administration argues that it has the authority to review and suspend aid contracts to ensure they align with its policies. Grounds for terminating contracts reportedly include their connection to diversity, equity, inclusion, and accessibility (DEIA) programs, which the administration deems unnecessary or wasteful.
Partial Payment Promises Amid Resistance
In an attempt to show compliance with the court order, Secretary of State Marco Rubio announced that payments for work completed before January 24—when the aid freeze began—would be expedited. However, the administration admits that full payments could take weeks, further straining aid organizations that are already struggling to operate.
Humanitarian Crisis and Global Impact
The suspension of aid contracts has had severe global consequences. Relief organizations warn that the funding halt is disrupting crucial programs, including food distribution, healthcare initiatives, and refugee assistance. The administration’s decision to place most USAID employees on paid administrative leave and eliminate 1,600 positions has further complicated efforts to resume normal operations.
Many aid groups have warned that without immediate funding, they may have to shut down within days. The situation has prompted employee unions to sue the government, challenging the mass layoffs and aid suspensions.
A Defiant Stand Against Court Orders
Judge Ali, appointed by former President Joe Biden, has criticized the administration for failing to comply with multiple court orders. In a separate case involving a broader federal payment freeze, another federal judge in Rhode Island has also condemned the government’s defiance.
Despite these rulings, the administration continues to resist, arguing that it is acting in good faith while interpreting the court’s directives.
Allison Zieve, an attorney representing two plaintiffs—the AIDS Vaccine Advocacy Coalition and the Journalism Development Network—expressed frustration over the government’s actions.
“The lengths that the government is willing to go to flout a court order, all for the goal of ending life-saving humanitarian assistance, is staggering,” she said.
What’s Next?
The administration has appealed to the D.C. Circuit Court of Appeals, requesting a pause on the restraining order while the case is under review. If the appeal is granted, the aid freeze could continue indefinitely, further complicating efforts to resume humanitarian work.
With the legal battle intensifying, the fate of thousands of aid programs remains uncertain, leaving millions who rely on U.S. assistance in limbo.
