Rubio Cancels 83% of USAID Contracts, Pledging More Oversight

Secretary of State Marco Rubio announced the cancellation of 83% of USAID contracts to enhance accountability and oversight. Rubio emphasized that his department would closely monitor the remaining programs. This decision aims to ensure transparency and improve effectiveness. The move is seen as a significant shift in U.S. foreign aid policy.

Tens of Billions in Cancelled Contracts

Rubio revealed on X that 5,200 contracts, worth tens of billions, were canceled due to unmet objectives. He stated these funds failed to serve U.S. national interests, sometimes undermining them. This decision targets inefficiency and mismanagement within foreign aid programs. Rubio aims to improve accountability and the use of taxpayer money.

State Department Takes Over Remaining Programs

After the cancellation, Rubio emphasized that the State Department would manage remaining USAID contracts, collaborating with Congress for oversight. This shift aims for greater accountability and efficiency in aid programs. The move is designed to ensure more focused, effective implementation. Rubio’s department will oversee contract execution moving forward.

Review and Reduction After Six-Week Investigation

The cuts follow a six-week review of USAID operations, launched at the start of President Trump’s second term. This review aligns with Elon Musk’s DOGE initiative to reduce government spending. The goal is to streamline operations and enhance efficiency. The review aimed to identify unnecessary expenditures within USAID’s programs.

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Freeze on Programs Under Trump Administration

In the early Trump administration, officials closed USAID offices and froze all funding, halting global programs. The freeze lasted until completing the review. This move reassessed USAID’s operational effectiveness. Officials suspended programs worldwide during the evaluation process.

DOGE’s Role in Funding Reductions

Rubio credited the DOGE initiative and his department’s staff for implementing these essential reforms. He highlighted DOGE’s pivotal role in driving change. The initiative’s efforts played a key part in these groundbreaking shifts. Rubio emphasized the importance of teamwork in achieving successful outcomes.

Court Ruling on Outstanding Payments

In a separate development, the U.S. Supreme Court reinstated a lower court ruling. It ordered the release of up to $2 billion owed to contractors for completed work. This decision mandates swift payment to contractors. The ruling ensures contractors receive compensation for their completed projects.