US cuts overseas development programme budgets by more than 90%: State Department
THE United States has dramatically cut the budgets of overseas development and aid programmes, with multi-year contracts pared down by 92 per cent, or US$54 billion, the State Department said on Wednesday (Feb 26).
After his inauguration on Jan 20, US President Donald Trump signed an executive order demanding a freeze on all US foreign aid for 90 days, during which time it would undergo a review by senior political leadership to cut spending on programmes that did not align with his “America First” agenda.
The review in part targeted multi-year foreign assistance contracts awarded by the US Agency for International Development (USAID), with the vast majority eliminated during its course.
“At the conclusion of a process led by USAID leadership, including tranches personally reviewed by Secretary (Marco) Rubio, nearly 5,800 awards with US$54 billion in value remaining were identified for elimination as part of the America First agenda – a 92 per cent reduction,” a State Department spokesperson said in a statement.
The review also looked at more than 9,100 grants involving foreign assistance, valued at more than US$15.9 billion.
At the conclusion of the review, 4,100 grants worth almost US$4.4 billion were targeted to be eliminated, a 28 per cent reduction.
“These commonsense eliminations will allow the bureaus, along with their contracting and grants officers, to focus on remaining programmes, find additional efficiencies, and tailor subsequent programmes more closely to the Administration’s America First priorities,” the State Department spokesperson said.
Programmes that were not cut included food assistance, life-saving medical treatments for diseases like HIV and malaria, and support for countries including Haiti, Cuba, Venezuela, and Lebanon, among others, the spokesperson said. AFP
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
