Trump Moves to Cut $5B Foreign Aid, Shutdown Threatens

News Desk

Islamabad: US President Donald Trump has proposed cutting nearly $5 billion in congressionally-approved foreign aid, a move that could heighten the risk of a federal government shutdown, the White House confirmed Friday.

The proposed $4.9 billion reduction targets programs under the State Department and the United States Agency for International Development (USAID), according to a letter Trump sent to the House of Representatives.

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

Democrats have warned that reversing funding already approved by Congress would derail negotiations to avoid a shutdown later this year. Senate Minority Leader Chuck Schumer called Trump’s tactic—technically a “pocket rescission”—illegal, accusing Republicans of lacking a plan to prevent an “entirely unnecessary” shutdown.

Some moderate Republicans have also expressed opposition to canceling congressionally-allocated spending. However, a White House official insisted the administration has a “solid legal basis” for the move and predicted any court challenge would fail.

USAID in the crosshairs

Since taking office, Trump has scaled back USAID, the world’s largest humanitarian aid agency. Established in 1961 under President John F. Kennedy to support U.S. influence in the developing world, USAID has been folded into the State Department after Secretary of State Marco Rubio cut 85 percent of its programs.

Rubio welcomed Trump’s latest proposal, calling it part of efforts to eliminate “fraud, waste, and abuse” in government spending.

According to court filings cited by AFP, $3.2 billion of the new cuts would hit USAID directly, confirming earlier reports by the New York Post. Research published in The Lancet in June warned that earlier USAID reductions could lead to more than 14 million preventable deaths worldwide, a third of them children.

The plan also seeks to slash $838 million from U.N. peacekeeping missions. U.N. spokesperson Stephane Dujarric said the cuts would further strain the organization’s already fragile finances.

Shutdown threat looms

Since beginning his second term in January, Trump has pushed a sweeping downsizing of federal agencies while seeking to expand presidential authority.

While Republicans control both the House and Senate, they still require Democratic support in the upper chamber to pass new spending measures. Trump is attempting to claw back the $4.9 billion late in the fiscal year, leaving Congress little time to respond before the funds expire next month.

The U.S. narrowly avoided its last shutdown in March. Government shutdowns, though infrequent, are costly and disruptive—halting basic functions like food inspections, closing parks and federal facilities, and forcing up to 900,000 federal workers on unpaid leave.

Another million deemed essential, such as air traffic controllers and law enforcement, must continue working without pay until funding is restored.