The US has officially announced the closure of 83% of USAID programs after six weeks of analysis. As reported by IZ, citing the US Secretary of State, 5,200 contracts, on which tens of billions of dollars were spent, were canceled. The main reason for this decision was that most of the programs did not meet the national interests of the country or even harmed them. At the same time, about 1,000 programs will continue their work under the management of the US State Department to increase efficiency.
US Secretary of State Marco Rubio said the reorganization would help focus resources on important national goals. The review lasted six weeks and covered all USAID programs. Among the canceled contracts were projects to finance tourism in Egypt and the purchase of electric vehicles for Vietnam. About 18% of the programs that remain will be monitored more effectively to eliminate waste and improve results.
The decision to close a significant portion of USAID programs was made after consultations with Congress. The remaining programs will focus on areas of strategic importance to the United States. The unfunded expenditures included millions of dollars on projects that had no significant impact on the national interest. The US administration hopes that such steps will allow for more rational use of public funds and increase transparency in their allocation.
Recall that we previously wrote that Starlink will remain in Ukraine.