In a historic move, U.S. President Donald Trump has signed into law a US$9 billion rescissions bill that rolls back the funding planned for international aid and public broadcasting already approved by Congress for the 2025 fiscal year.
The move follows final approval by the House of Representatives on July 18, marking the first time in 25 years that Congress has successfully passed a rescissions package, a rarely used budget-cutting tool.
The legislation reduces foreign aid by US$7.9 billion and trims US$1.1 billion from the Corporation for Public Broadcasting, putting 1,500 public media facilities at risk of closure.
Initially proposed to be US$9.4 billion, the final bill was scaled back by US$400 million after some Republican senators pushed to protect funding for the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR), an initiative widely recognized for saving over 25 million lives worldwide.
The deciding vote
The rescissions process is a budgeting mechanism that enables the U.S. President and Congress to revoke funds that have already been allocated.
This special budgetary maneuver allowed lawmakers to sidestep the usual 60-vote requirement needed to break a filibuster in the Senate, so the Republican-controlled Senate approved the bill on July 17 with a 51–48 vote along mostly party lines. The following day, the House narrowly passed the measure with a 216–213 vote, clearing the way for Trump to sign it into law.
Trump, who championed the package following recommendations from the Department of Government Efficiency, celebrated its passage on Truth Social, calling it a major victory in the 40-year conservative campaign to eliminate wasteful spending.
US$7.9 billion foreign aid cuts
Of the US$9 billion clawed back, US$7.9 billion was cut from international aid. The cuts reflect a renewed embrace of Trump’s America First agenda, marking a substantial reduction in the United States’ global engagement.
Among the biggest casualties is the U.S. Agency for International Development (USAID), once the world’s largest bilateral aid agency, which officially shut its doors on July 1st after over 80% of its budget was wiped out. A Lancet study warned in July that closure of USAID could lead to over 14 million preventable deaths by 2030, including 4.5 million children under five.
Key foreign aid cuts:
- Development Assistance: Lost US$2.5 billion, two-thirds of its 2025 budget, affecting food security, gender equity, and education.
- Migration and Refugee Assistance: Cut by US$800 million (25%), undermining support for displaced populations and U.S. refugee resettlement.
- International Disaster Assistance: Slashed by US$496 million (12%), reducing emergency response capabilities.
- Peacekeeping Operations: Reduced by US$361 million, weakening global conflict stabilization efforts.
- Global Health Programs face a US$500 million cut.
- Economic Support Fund: Down by US$1.7 billion, nearly halving aid for strategic regions.
- Clean Technology Fund: Lost US$125 million, ending U.S. support for low-carbon development in less developed nations.
- Democracy and Development Initiatives: US$4.15 billion rescinded from programs promoting economic growth and good governance.
- Complex Crises Fund: 78% of the US$55 million originally budgeted for 2025 slashed.
- US$460 funding lost for democracy support programs in Eurasia, Central Asia, and Europe.
- Transition Initiatives, which support conflict stabilization worldwide, lost US$57m.
- USAID Operations: Down US$125 million, shrinking field capacity.
- The Inter-American Foundation and the U.S. African Development Foundation lost US$27 million and US$22 million, correspondingly.
- The U.S. Institute of Peace saw its funding slashed by US$15 million, a 25% reduction.
Humanitarian groups have warned that without sustained U.S. aid, global humanitarian initiatives will collapse.
“This decision is deeply disappointing,” said Michael J. Nyenhuis of UNICEF, emphasizing that “cutting it puts the most vulnerable children at even greater risk.”
Meanwhile, Médecins Sans Frontières has stated that the funding cuts are likely to worsen the already critical conditions faced by people living in conflict zones and crisis-affected regions globally.
Rural broadcasters face closure
The rescissions bill also terminates US$1.1 billion in federal funding for public broadcasting by 1 October, placing over 1,500 local National Public Radio (NPR) and Public Broadcasting Service stations at risk of collapse, particularly those in remote areas.
While major urban stations may survive through private donations, smaller outlets serving remote communities face an uncertain future. The move follows an executive order in May that ended what the White House termed “taxpayer subsidization of biased media.”
“Nearly three in four Americans rely on public radio for safety alerts and local news,” explained NPR Chief Executive, Katherine Maher, warning that the cuts could erode emergency communications and civic engagement.
The public broadcasting cuts come amid a broader crisis in local journalism, with thousands of newspapers having closed in recent years.
More cuts likely ahead
Russell Vought, Director of the Office of Management and Budget, told reporters that the US$9 billion in cuts was deliberately modest, pointing out that:
“The President’s enthusiasm to send additional packages? I think it’s likely you’ll see an additional package.”
