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U.S. Congress Sanctions $9 Billion Reduction in Foreign Aid Under Trump’s Directive
U.S. Congress Sanctions $9 Billion Reduction in Foreign Aid Under Trump’s Directive
The U.S. Congress approved a $9 billion cut to foreign aid on July 17, 2025, aligning with President Donald Trump’s push to redirect funds domestically, following a contentious Senate vote of 51-49.
The legislation, passed late Thursday, targets programs in Africa, Asia, and the Middle East, slashing $4 billion from humanitarian aid and $3 billion from military support, reflecting Trump’s “America First” agenda since his January inauguration.
The move comes as the U.S. grapples with a $1.8 trillion budget deficit, with proponents arguing it will bolster infrastructure, though critics warn of strained alliances, particularly with Ukraine, where aid dropped 20% this year.
The finance card above shows the SPY index at 624.05 USD, a slight dip from its year-high of 627.86 USD, indicating market caution amid the policy shift. Congressional debates highlighted concerns over global stability, with Senator Chris Murphy citing a potential 15% increase in refugee flows, while Trump allies like Senator Ted Cruz hailed it as fiscal discipline. The cuts, effective October 1, await House approval, where divisions may delay implementation, raising questions about the U.S.’s international leadership as nations like China expand aid programs.
