U.S. President Donald Trump has announced plans to slash $5 billion in congressionally-approved foreign aid, a move that has triggered fierce opposition from Democrats and heightened the risk of a looming federal government shutdown.
The White House confirmed the decision on Friday, August 29, saying the cuts would primarily affect programs under the State Department and the United States Agency for International Development (USAID).
“The President will always put AMERICA FIRST,” the Office of Management and Budget said in a statement shared on social media, along with a copy of Trump’s letter to the House of Representatives.
The decision marks another step in Trump’s long-running effort to dismantle USAID, the main U.S. foreign aid agency established in 1961 by President John F. Kennedy as a Cold War tool to win over developing nations.
Since Trump’s return to office in January, USAID has been absorbed into the State Department after Secretary of State Marco Rubio cut 85 percent of its programming.
Rubio welcomed the President’s latest action, framing it as part of an anti-waste campaign.
“This is about rooting out fraud, waste, and abuse from the U.S. government, saving American workers billions of dollars,” Rubio said, noting that among the targeted funds were allocations for international LGBTQ awareness campaigns.
Democrats, however, have accused Trump of abusing executive powers to bypass Congress. Senate Minority Leader Chuck Schumer denounced the move, describing Trump’s little-used legislative maneuver, technically called a pocket rescission, as unlawful.
“It’s clear neither Trump nor Congressional Republicans have any plan to avoid a painful and entirely unnecessary shutdown,” Schumer warned.
Moderate Republicans have also expressed unease, with some privately cautioning that the cuts could undermine U.S. influence abroad and damage bipartisan negotiations on government spending.
Trump’s decision comes at a critical point in the fiscal year. By clawing back spending so close to the September 30 deadline, critics argue he is deliberately creating a time crunch that could leave Congress unable to override his move before funding expires.
Democrats have warned that the strategy could derail talks to keep the government open, reviving fears of a budgetary paralysis similar to past shutdown battles.
The U.S. narrowly avoided a shutdown in March, striking a deal just hours before federal funding was due to lapse.
Shutdowns, while rare, are highly disruptive: up to 900,000 federal employees face furloughs, while another million including air traffic controllers, border patrol officers, and law enforcement agents are required to work without pay until a resolution is reached.
Everyday services such as food inspections, national parks, and federal building operations are suspended, costing the economy billions.
Trump, now in his second term, has launched a sweeping campaign to centralize executive authority and reduce the size of the federal government.
He has already pushed through measures to restructure multiple agencies and has signaled he may seek further cuts to U.S. international commitments.
With Republicans holding both chambers of Congress but lacking a supermajority in the Senate, the success of his strategy may hinge on whether moderate Republicans side with Democrats in opposing what they call an “unconstitutional overreach.”
For now, Washington is bracing for yet another high-stakes budget showdown one that could have global consequences for America’s diplomatic footprint and millions of federal workers at home.
