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Foreign aid

Congress Voted to Cut $7.9 Billion in Foreign Aid. The White House Canceled $4.9 Billion More Without a Vote.

Summary

USAID's programs, staff, and money all collapsed in 2025. 83% of its programs were canceled, its workforce fell from over 10,500 to a planned 718, and in August the administration canceled another $4.9 billion in aid through a maneuver the Government Accountability Office says the law doesn't allow.

By Nero · July 9, 2026

For sixty-four years, the United States Agency for International Development ran the government's foreign assistance programs. In 2025 it stopped. On March 10, Secretary of State Marco Rubio announced on his official account that "after a 6 week review we are officially cancelling 83% of the programs at ," putting the count at 5,200 terminated contracts. By July 1, had formally ceased to implement foreign assistance and its surviving functions moved to the State Department. What was left of the money went two different ways: some of it Congress voted to cut, and some of it the White House canceled on its own.

Foreign aid canceled, no vote
$4.9B
Aug. 28, 2025 pocket rescission
USAID/State workforce
718
planned 2025 total vs 10,500+ in FY2024
USAID programs terminated
83%
~5,200 contracts, per Sec. Rubio

Two rescissions, one voted on

Congress has one lawful way to cancel money it already appropriated: the president proposes a rescission, and both chambers have 45 days to pass it into law. That's what happened in July. The Rescissions Act of 2025 — Public Law 119-28 — passed the House on June 12, passed the Senate on July 17, and was signed on July 24. It permanently canceled $7.9 billion in foreign assistance funding, plus $1.1 billion from the Corporation for Public Broadcasting. Both chambers voted. The money was gone through the front door.

Five weeks later, the administration used the back door. On August 28, the White House announced a "pocket rescission" — sending Congress a proposal to cancel $4.9 billion in foreign aid so close to the September 30 fiscal-year deadline that the money would expire before the 45-day review clock ran out, whether or not Congress voted at all.

Where the $4.9 billion pocket rescission came from
Accounts targeted in the Aug. 28, 2025 special message, $ millions
Pocket rescission, Aug. 28, 2025$4.9BUSAID Development Assistance$3.2BContributions to international organizations$521MPeacekeeping Operations$445MPeacekeeping Activities Contributions$393MUSAID/State Democracy Fund$322M
Source: The White House, "Historic Pocket Rescission Package…" (Aug. 28, 2025)
View data as table
Pocket-rescission accounts
USAID Development Assistance$3,200M
Contributions to international organizations$521M
Peacekeeping Operations$445M
Peacekeeping Activities Contributions$393M
USAID/State Democracy Fund$322M

The Government Accountability Office reviewed the same package and did not clear it. has long held that the Impoundment Control Act does not let a president withhold funds past the date they expire — and every account in the August 28 message expired September 30, well before Congress's 45-day review window would have closed on October 23. The White House used the maneuver anyway, the first time in nearly 50 years anyone has tried it, according to Secretary Rubio.

The agency that used to do this work

None of that money moves itself. It used to move through an agency with offices in dozens of countries and a workforce sized to match. The State Department's own inspector general audited what replaced it.

USAID's workforce, before and after
Direct-hire staff, locally employed staff, and contractors, FY2024 vs. the approved 2025 realignment plan
Direct-hire staff — FY2024 (USAID)
4,500
Direct-hire staff — 2025 plan (State)
308
Locally employed staff — FY2024 (USAID)
5,000
Locally employed staff — 2025 plan (State)
370
Contractors — FY2024 (USAID)
1,000
Contractors — 2025 plan (State)
40
Source: U.S. Dept. of State, Office of Inspector General, Audit AUD-GEER-25-20 (May 2025)
View data as table
USAID/State foreign-assistance staffing
Direct-hire staff, FY20244,500USAID
Direct-hire staff, 2025 plan308State Dept.
Locally employed staff, FY20245,000USAID
Locally employed staff, 2025 plan370State Dept.
Contractors, FY20241,000+USAID
Contractors, 2025 plan40State Dept.

In fiscal 2024, employed roughly 4,500 domestic direct-hire staff, 5,000 locally employed staff — mostly non-U.S. nationals working in the countries where the aid was delivered — and more than 1,000 personal services contractors: about 10,500 people in total. The Secretary of State's approved plan for absorbing 's surviving functions calls for 308 direct-hire staff, 370 locally employed staff, and 40 contractors — 718 people, a 93% reduction. The inspector general's finding was not that the cut was too deep or too shallow; it was that the number wasn't tied to any strategic workforce plan at all, and that the working group responsible for managing the transition was itself scheduled to disband before the realignment was finished.

The takeaway

  • Two different processes canceled foreign aid dollars in 2025, and only one of them was a vote. $7.9 billion went through Congress and became law. $4.9 billion went through a timing maneuver says the Impoundment Control Act doesn't allow.
  • The agency is gone in practice before any court has settled whether the process was legal. stopped implementing aid on July 1; the legal fight over how its money was pulled is still unresolved.
  • The workforce cut wasn't planned to a mission — it was planned to a headcount. State's own inspector general found the 718-person staffing target wasn't derived from a strategic assessment of what the work requires.

Dollar and staffing figures in this piece come from the specific documents cited inline and in Sources below; figures describing ongoing litigation or disputed program counts reflect the state of the record as of this writing and may be superseded by later court rulings or agency data.

Sources

  • Secretary of State Marco Rubio, official statement on X, March 10, 2025 — announcing the cancellation of 83% of 's programs, 5,200 contracts. x.com/marcorubio
  • Rescissions Act of 2025, Public Law 119-28 (H.R. 4, 119th Congress), signed July 24, 2025 — $7.9 billion in foreign-assistance funding permanently rescinded by a recorded congressional vote. congress.gov
  • The White House, Historic Pocket Rescission Package Eliminates Woke, Weaponized, and Wasteful Spending, Aug. 28, 2025 — official account-by-account breakdown of the $4.9–5.0 billion pocket rescission. whitehouse.gov
  • U.S. Government Accountability Office, Decision B-337805, Impoundment Control Act of 1974: Review of the President's Special Message of August 28, 2025's legal conclusion that funds cannot lawfully be withheld past their expiration date under a pocket rescission. gao.gov
  • U.S. Department of State, Office of Inspector General, Audit AUD-GEER-25-20, May 2025 — FY2024 staffing levels and the approved 2025 State Department realignment staffing plan. stateoig.gov
  • Congressional Research Service, U.S. Agency for International Development: An Overview (IF10261, updated Sept. 5, 2025) — background on 's dissolution and transfer of functions to the State Department. congress.gov
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