Foreign aid freeze leads to USAID worker suspensions and contractor terminations

By: Eliot Pierce

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According to several accounts, hundreds of contractors have been laid off or placed on furlough, and dozens of top employees at the United States Agency for International Development, or USAID, have been placed on administrative leave until further notice.

This came after Secretary of State Marco Rubio issued an order last Friday that immediately stopped almost all US-funded foreign aid assistance in other countries.

Twelve current and former USAID employees and contractors who spoke freely asked to remain anonymous when interviewed by CBS News.

A number of USAID employees were placed on administrative leave with full pay and benefits until further notice after multiple actions within USAID that seem to be intended to circumvent the President’s Executive Orders and the mandate from the American people were identified, according to an email obtained by CBS News and sent by USAID’s acting administrator Jason Gray to USAID staff on Monday.

According to five sources aware with the internal action, USAID has suspended about 60 senior staff members, including the assistant administrators and deputy assistant administrators who oversee most of its offices, leaving the agency without clear leadership.

Foreign service officers and career government workers made up the great bulk of those put on leave. They also included USAID lawyers in the General Counsel’s Office, who interpret executive directives and make sure they are carried out.

One report claims that the impacted people were instructed to return home and refrain from speaking with any USAID representatives. Some of the individuals in issue were violently led out of the facility, according to two sources who spoke to CBS News.

Six persons with knowledge of the matter told CBS News that several hundred USAID contractors have been laid off or placed on furlough.

While some furloughed employees have been assured that their benefits will last until the end of February, others have been advised that they have been fired instantly without severance pay and that their benefits will expire in just three days, at the end of January.

The administration’s efforts to fulfill President Trump’s campaign pledges to reduce the size of the federal workforce and explore avenues to minimize what it views as unnecessary government spending include Rubio’s order.

Mr. Trump has long insisted that the United States is primarily responsible for foreign aid, with other nations failing to provide adequate contributions. Critics counter that such cuts may erode America’s reputation internationally and give China and other enemies a chance to influence foreign policy.

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Rubio’s directive to suspend federal overseas aid was met by stop-work orders on Monday and Tuesday for businesses with contracts with the State Department and USAID.

According to termination letters that CBS News was able to obtain, This letter serves as notice that, as a result of a contract layoff, your employment with [government contract holder] will end on January 28, 2025. We regretfully have no work for you to finish since [federal contract holder] issued a Stop Work Order and we do not have permission to move forward.

The words “We hope this situation is temporary and that you can return to your positions” are included in the termination letters. According to sources, termination letters were then sent to the employees’ personal emails after their email accounts with USAID and the contracting company were disabled.

One source claims that USAID employees rushed to apply for program waivers as soon as Rubio issued the directive.

The USAID leadership was then violently escorted out. According to the insider, the waiver procedure was a farce.

According to another agency source, USAID is completely devastated. This method of halting programs is surgical. Here, lives are on the line. We are putting lives in jeopardy.

State Department spokesperson Tammy Bruce informed reporters late Tuesday that a waiver request template has been sent to staff.

Rubio lifted his own pause on foreign aid later on Tuesday. According to Rubio, the waiver covers life-saving humanitarian aid, which he defined as life-saving medications, medical services, food, shelter, and subsistence aid, along with supplies and reasonable administrative costs as needed to provide such aid, in a second memo to CBS from a senior administration official.

The note also said that those who are currently carrying out life-saving humanitarian assistance initiatives should keep up their efforts or, if they have halted, start up again.

According to the memo, the new waiver excludes actions related to gender or DEl ideology programs, family planning conferences, abortions, transgender procedures, and other non-life-saving assistance.

The State Department has yet to clarify if Rubio’s new waiver automatically exempts some US-funded foreign aid programs or if all programs worldwide still need to apply for a waiver in order to start receiving US funds again.

The impact of this new waiver on people whose employment has already been terminated is unknown.

Rubio instructed all US diplomatic and consular posts to immediately issue stop-work orders for existing foreign assistance grants, pending review by the Secretary of State, according to a copy of his initial directive that CBS News was able to obtain last Friday.

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Although he did not name which exceptions, Rubio added in his initial order that the pause authorized by the State Department Director of Foreign Assistance Office is excluded.

Former Pentagon deputy assistant secretary of African Affairs Pete Marocco is now in head of the State Department’s international Assistance Office, or F internally, which manages international aid initiatives run by USAID and the State Department, according to CBS News.

According to one affected USAID source, “I’m so devastated [by] what just happened.” We took pleasure in our work and the positive impact it had on individuals worldwide. What transpired was utterly unjust.

They stated that this had never occurred during an administration transition and that they had accepted the move while eager to establish a positive working relationship with the new government.

At the end of the month on Friday, two now-former USAID contractors voiced their profound concern about suddenly being without health insurance despite having life-threatening medical illnesses, one of which was made worse by frequent job travel.

We might have received payment from our contractor in two weeks. Another USAID worker whose employment was ended on Tuesday said, “Or at least until next week so that we could have health insurance through February.” The atmosphere is apocalyptic.

Every email they sent after last week felt like a threat, and they carried it out. The source claims that Monday and Tuesday were tearful and stressful days in their office.People are afraid. Direct hires are unclear of what to do because they are suffering from severe survivor guilt.

The executive order targeting Diversity, Equity, and Inclusion initiatives also resulted in the termination of some USAID contractors last week without severance pay or leave.

It’s possible that under the Biden administration, people who weren’t DEI advisers or whose main duties had nothing to do with DEI helped in group workplace initiatives centered on accessibility and diversity.

“Effective immediately, USAID no longer requires the services you currently perform under the contract,” read the termination letters that were sent to those employees late Thursday evening. USAID is no longer providing money for this post as of right now.

Additionally, a number of individuals informed CBS News that pictures depicting USAID’s beneficiaries and programs had been taken down from the walls of a number of annex offices located in Washington, D.C. One source claims that taking down photos is not standard procedure between administrations.

A second source confirmed that they are physically disassembling items within the building. They added a third: they are eliminating our existence.

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Contractors with USAID s Bureau for Global Health, which oversees projects involving HIV/AIDS treatment, maternal and child health, malaria, tuberculosis, and other infectious diseases, were among those who received termination notices on Tuesday.

Two sources claim that all of the Global Health Bureau’s contractors—roughly 450 technical professionals in total—were fired. With only around 450 direct hires left in that bureau, these contractors make up almost half of USAID’s global health workforce.

One prominent government program that has been abruptly discontinued since Rubio issued the order is the President’s Emergency Plan for AIDS Relief, or PEPFAR, which was started by the George W. Bush administration in 2003. This could potentially disrupt the supply of antiviral medications (ARVs) to millions of HIV and AIDS patients around the world. Since its launch, PEPFAR has saved the lives of 26 million people, according to the State Department.

While funding could be rescinded pending the outcome of a 90-day review, advocates are increasingly concerned that congressional support for PEPFAR is jeopardized following the discovery earlier this month that groups receiving aid performed abortions, which is a violation of US law.

According to Reuters, since 2021, four nurses from Mozambique have carried out 21 abortions. That revelation could also be part of the upcoming State Department review.

According to one source, 20.6 million people worldwide are currently receiving life-saving drugs through PEPFAR, so a freeze in US aid funding could result in hundreds of thousands of deaths, particularly for women and children, depending on the length of the freeze.

This is a crime against humanity, the source explained.

This purge is unprecedented, is a threat to our national security, makes America less safe, and seems [to be] circumventing congressional authority, a former USAID employee commented.

To me, this is an unmitigated hostile takeover of our democracy, another source affected by the federal assistance freeze stated. USAID is only the first casualty. More are on the way, however. With the intent to wield power for whatever purposes they see fit.

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