The Trump administration has announced a 92% reduction in the United States Agency for International Development's (USAID) foreign assistance budget, a move that will significantly impact development programs in countries like Nigeria.
According to a statement from the U.S. State Department on Wednesday, the budget cut will eliminate $54 billion worth of multi-year contracts and foreign development programs previously allocated to USAID.
The decision is part of a broader review of U.S. foreign assistance, aiming to significantly scale back funding for international aid initiatives. The drastic cuts are expected to affect economic, humanitarian, and infrastructural projects in several nations, sparking concerns over the future of U.S.-led global development efforts.
“After a process led by USAID leadership, including tranches personally reviewed by Secretary Marco Rubio, nearly 5,800 awards with $54 billion in value remaining were identified for elimination as part of the America First agenda – a 92 per cent reduction,” the agency declared in a statement according to Al Jazeera.
The US State Department also stated that another 9,100 grants involving foreign assistance, estimated to cost more than $15.9 billion, will also be reviewed.
After the review, another 4,100 grants worth almost $4.4 billion may be eliminated.
Shortly after his inauguration in January, Mr Trump signed an executive order to stop the disbursement of all US foreign aid for 90 days, a move which disrupted crucial activities in Nigeria and other developing countries.