Rubio Cancels 83% of USAID Contracts

Secretary of State Marco Rubio announced that his agency had canceled 83% of the U.S. Agency for International Development‘s contracts following a multiple-week review.

USAID was one of the first agencies targeted by the Department of Government Efficiency and Elon Musk for cuts under the Trump administration, with all foreign aid out of the agency paused initially.

The Trump administration fired thousands of employees and contractors at USAID and put Rubio as the agency’s acting administrator during the reforms.

Rubio announced early on Monday that 5,200 contracts would be canceled because the programs did not serve U.S. interests, claiming the move would save “tens of billions of dollars” in a post on X.

“After a 6 week review we are officially cancelling 83% of the programs at USAID. 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,” Rubio said.

Rubio also announced roughly 1,000 USAID programs would continue but that they would be handled under the State Department rather than USAID. A list of programs that will continue was not immediately available.

“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. Thank you to DOGE and our hardworking staff who worked very long hours to achieve this overdue and historic reform,” Rubio said.

Rubio thanked DOGE in his post days after the New York Times reported that Rubio and Musk had a fiery exchange during a Cabinet meeting last week regarding whether there had been enough firings at the State Department.

Musk is an adviser to President Donald Trump in the White House and a leader in DOGE’s efforts.

The White House denied that there is a rift between Rubio and Musk despite the report.