The US Secretary of State announced on Monday the closure of most USAID programs after a six-week analysis.
"After a 6 week review we are officially cancelling 83% of the programs at USAID," said Marco Rubio, United States Secretary of State, in a post on X.
Rubio said that the 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States.
"In consultation with Congress, we intend for the remaining 18% of programs we are keeping (approximately 1000) to now be administered more effectively under the State Department," he said.
Rubio thanked the DOGE and their staff for their hard work. "Thank you to DOGE and our hardworking staff who worked very long hours to achieve this overdue and historic reform."
In February 27, the U.S. administration halted nearly 5800 grants USAID, keeping only 500 worth 57 billion dollars.
In particular, it was reported that the significant reduction in foreign aid is hitting the work of non-profit organizations and contractors. Aid programs around the world have been suspended due to a complete freeze on funding and a review of billions of dollars in aid.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!