The Shocking Shift In U.S. Foreign Aid: What Is Behind The Cuts?

The U.S. State Department may soon cut nearly all remaining funding for pro-democracy programs worldwide, marking a sharp shift in American foreign policy and raising alarms among diplomats, human rights advocates, and lawmakers.

According to briefings obtained by The Guardian, as of Thursday, June 26, 2025, the Office of Management and Budget (OMB) has advised the termination of approximately $1.3 billion in grants.

These were awarded under the Bureau of Democracy, Human Rights, and Labor (DRL).

Of the 391 active grants reviewed, only two, one each in China and Yemen, were reportedly recommended to continue.

If enacted, the recommendations would eliminate around 80% of the State Department’s foreign aid programming, according to three officials familiar with the matter.

This sweeping cut threatens to gut initiatives that support civil society, human rights defenders, and media freedom in some of the world’s most repressive regimes, from Cuba to China.

One official described the grants as a “lifeline” for activists working in hostile environments.

Radical Realignment Under Trump Agenda

The potential rollback reflects the Trump administration’s evolving priorities, particularly under Secretary of State Marco Rubio and OMB Director Russell Vought.

Rubio has historically supported democracy promotion abroad.

On the other hand, insiders say he’s now aligning with the administration’s “America First” approach, which favors domestic spending cuts over international engagement.

The OMB recommendations coincide with a broader State Department reorganization that could lead to the elimination or consolidation of 300 offices and the layoffs of up to 3,400 employees.

Sources say DRL is expected to be among the hardest hit.

By cutting its programs, the department may find it easier to justify layoffs and eliminate staff responsible for managing these initiatives.

“If you cut all the programs in DRL, then why would you need to keep the staff if they’re not doing any work?” one official remarked grimly.

Internal Tensions and Controversial Proposals

Adding fuel to the controversy, a recently appointed senior adviser to DRL, 23-year-old Samuel Samson, reportedly suggested using congressional foreign aid funds for unrelated administration pet projects.

Among them: resettling Afrikaaners in the U.S. and supporting the legal defense of far-right French politician Marine Le Pen.

Samson, seen as emblematic of the new wave of hardline conservatives rising within the administration, has stirred concern among career diplomats.

He authored a contentious blog post on the State Department’s Substack titled “The Need for Civilizational Allies in Europe.”

In it, he criticized the classification of Germany’s far-right Alternative für Deutschland as an “extremist” party.

It remains unclear whether his recommendations were adopted in a DRL white paper currently being finalized to allocate the remaining foreign assistance funds before they expire.

High-Stakes Consequences

Programs at risk include emergency response teams designed to evacuate endangered democracy activists, initiatives fighting internet censorship, human rights watchdog projects, and election support missions.

Officials warn that naming the programs publicly, something done in past reviews, could endanger recipients operating under authoritarian regimes.

In many cases, even the existence of U.S. backing puts local partners at risk of arrest or worse.

“These aren’t just grants. These are lifelines,” one official said.

The looming cuts have drawn sharp criticism from Senate Democrats.

Ten lawmakers recently penned a letter to Secretary Rubio urging him to reconsider the planned reorganization and preserve DRL’s essential role in defending global human rights.

“The proposed reorganization would result in a structural and substantive demotion of human rights promotion that runs counter to the spirit of the law and your personal legacy,” the senators wrote.

“Millions of people around the world who live in societies dominated by fear and oppression look to the United States to champion their cause.”

Uncertain Path Forward

Whether Rubio will push back against the OMB’s recommendations remains to be seen.

His office has previously touted foreign assistance as a tool for moral leadership, but sources say the influence of fiscal hawks like Vought may prevail.

“The battle right now is Rubio versus Vought,” said one insider. “It’s a fight over the soul of U.S. foreign policy.”

As the clock ticks down on funding deadlines and departmental reorganization efforts accelerate, the future of America’s role in supporting global democracy hangs in the balance.