Trump Acknowledges $40 Billion USAID Cuts, 98% Climate Grants Canceled, Impacting Global Health and HIV Programs

President Donald Trump has acknowledged that his administration's cuts to the U.S. Agency for International Development (USAID) and related global aid programs have been 'devastating', particularly impacting regions such as Africa and the Middle East. Speaking alongside South African President Cyril Ramaphosa at the White House, Trump responded to questions about the significant effects of these cuts, especially in Africa, by stating, 'It's devastating, and hopefully a lot of people are going to start spending a lot of money.'

The funding reductions, amounting to approximately $40 billion from USAID's budget and $60 billion from total U.S. global aid, have led to the cancellation of key programs addressing hunger, disease prevention, and climate change. In Israel, the cuts have destabilized regional cooperation and research efforts, including projects with Jordan, Morocco, and the Palestinian Authority. The Arava Institute for Environmental Studies, for example, lost $1.3 million in annual USAID funding, forcing the termination of cross-border environmental initiatives.

In South Africa, the withdrawal of most U.S. funding has affected the country's response to the HIV epidemic. Prior to the cuts, the United States contributed 17% of South Africa's HIV budget, with about 8 million people—one in five adults—living with HIV. Since the reductions, testing and monitoring of HIV patients have decreased. The U.S. spent half a billion dollars on South African aid in 2023, primarily for healthcare, but most of that funding has now been withdrawn.

The Trump administration has defended the cuts as targeting wasteful spending. The restructuring of USAID, largely overseen by Elon Musk, has become the subject of several federal lawsuits. The United States remains the world's largest humanitarian donor, disbursing $61 billion in foreign assistance last year, just over half of it via USAID.

According to congressional analysis, over 98% of USAID grants with climate components—amounting to $2.1 billion and 174 grants—had been canceled by March. The loss of USAID funding has resulted in layoffs for 10,000 employees, halted research, and the suspension of climate and health programs in over 170 countries. The cuts have also prompted other nations, including the UK, Germany, and France, to consider or implement reductions in their own foreign aid budgets.