WASHINGTON, D.C. – The Trump administration has officially terminated over 90% of U.S. foreign aid contracts, impacting $60 billion in global assistance, according to a court filing on Wednesday.
Despite a court order to release frozen payments, the administration argued it needed more time to process outstanding invoices. The move has disrupted humanitarian efforts, putting critical food and medical aid programs at risk.
The administration justified the cancellations, citing a review process that deemed some contracts wasteful or tied to diversity, equity, and inclusion (DEI) initiatives—which Trump has sought to dismantle since taking office last month.
Legal challenges continue as organizations reliant on USAID funds warn they may be forced to shut down within days if payments remain blocked. A federal judge has already reprimanded the administration for ignoring court orders, with appeals now pending.