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Trump cancels US$4.9 billion in foreign aid, escalating clash with Congress

  • August 30, 2025

US President Donald Trump has moved to cut nearly US$5 billion of congressionally-approved foreign aid, the White House said Friday (Aug 29), raising the likelihood of a federal shutdown as Democrats oppose the policy.

The US$4.9 billion in cuts target programmes of the Department of State and the United States Agency for International Development (USAID), Trump wrote in a letter to the House of Representatives.

US President Donald Trump attends a cabinet meeting at the White House in Washington, D.C., US, August 26, 2025. (Photo: Reuters/Jonathan Ernst/File Photo)

The president “will always put AMERICA FIRST”, the White House Office of Management and Budget said on social media, releasing a copy of the letter.

Democrats have warned that any attempt to reverse funding already approved by Congress would doom negotiations to avoid budgetary paralysis, the so-called shutdown, later this year.

Chuck Schumer, who leads the Democratic minority in the US Senate, described Trump’s little-known legislative tactic, technically known as a pocket rescission, as illegal.

“It’s clear neither Trump nor Congressional Republicans have any plan to avoid a painful and entirely unnecessary shutdown,” he said.

Some moderate Republicans also expressed opposition to Trump’s effort to stop spending already approved by lawmakers.

A White House official told reporters the administration has a “solid legal basis” for Trump’s manoeuvre – and that any challenge in court would fail.

USAID DISMANTLED
Trump has effectively dismantled USAID, the world’s largest humanitarian aid agency, since taking office.

Founded in 1961 as John F Kennedy sought to leverage aid to win over the developing world in the Cold War, USAID has been incorporated into the State Department after Secretary of State Marco Rubio slashed 85 per cent of its programming.

Rubio welcomed Trump’s latest move as part of “rooting out fraud, waste, and abuse from the US government, saving American workers billions of dollars”.

The vast majority of the new cuts – US$3.2 billion – would be to USAID funding, according to court documents seen by AFP, confirming an earlier report in the New York Post.

Research published in The Lancet journal in June estimated that the previous round of USAID cuts could result in the preventable deaths of more than 14 million vulnerable people worldwide – a third of them small children.

Also targeted by the new cuts was US$838 million for peacekeeping missions.

“This is going to make our budget situation or liquidity situation that much more challenging,” United Nations spokesman Stephane Dujarric told a press conference.

Trump, after taking office for the second time in January, launched a sweeping campaign to downsize or dismantle swaths of the US government.

Republicans control both chambers of Congress, but need Democrat support in the Senate to pass new spending laws.

Trump, who is pushing to extend presidential powers, aims to claw back the US$4.9 billion late in the fiscal year so that Congress may not have time to vote before the funding expires next month.

Source: https://www.channelnewsasia.com/world/us-foreign-aid-funding-trump-cancels-billions-congress-5323396

 

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