US Foreign Aid Cut by $79.1 Billion Amidst Policy Shift

A sweeping restructuring of US foreign aid has resulted in the termination of $79.1 billion in assistance awards since January 2025, according to a new report from the Government Accountability Office (GAO). The changes, stemming from a series of executive orders, have dramatically reshaped the landscape of US foreign assistance, with the U.S. Agency for International Development (USAID) bearing the brunt of the cuts and staff reductions.

The GAO report details that USAID terminated approximately 6,780 of 7,510 awards between January 2025 and March 2026. While active awards still represent $52.1 billion, the sheer scale of the terminations signifies a major policy shift. The Europe and Eurasia region experienced the largest dollar value of terminated awards but remains the region with the highest value of ongoing USAID programs. These changes occurred as USAID ceased administering foreign assistance awards entirely as of July 1, 2025, transferring responsibility to the State Department.

The impact on USAID’s workforce has been profound. The agency’s global staff plummeted from approximately 13,600 in January 2025 to just 241 in April 2026. Simultaneously, all nine agencies reviewed by the GAO reduced their foreign assistance staffing levels. Critically, the State Department was unable to provide complete data on its own staffing reductions during the eleven months GAO requested it, impeding effective operational planning and risk assessment.

The GAO report raises serious concerns about transparency and consistency in the implementation of these changes. State officials have not produced documented guidance for staff regarding foreign assistance decisions, creating the potential for inconsistent, inefficient, or legally vulnerable choices. The lack of clear guidance could lead to incorrect assumptions about program changes and potential legal disputes over terminated awards. The report underscores the challenges of rapidly dismantling established foreign assistance programs and the need for robust data and oversight to ensure accountability.

The report’s findings highlight the magnitude of the restructuring occurring within US foreign aid. With USAID’s workforce decimated and the State Department struggling to provide basic staffing data, the long-term implications for US foreign policy and development efforts remain uncertain. The $79.1 billion in terminated awards represents a substantial reallocation of resources, and the efficacy of this shift will depend on the State Department’s ability to effectively manage the remaining programs and address the deficiencies identified by the GAO.