CA, US & World
Trump Administration Diverts 2 Billion Dollars in Global Health Aid to Pay for USAID Shutdown
WASHINGTON, D.C. — The Trump administration is moving forward with a plan to redirect 2 billion dollars originally intended for global health programs to pay for the "closeout" costs of the now-defunct U.S. Agency for International Development (USAID). According to a notification sent to Congress, the funds will be used to settle legal fees, pay pending invoices, and manage asset sales following the agency's abrupt dismantling last year.
The move has sparked immediate backlash from health experts and lawmakers who argue that the redirection of these funds will result in a staggering loss of life across the globe.
Lifesaving Programs Drained for Administrative Costs
The 2 billion dollars in question was previously appropriated by Congress to combat several of the world's most deadly diseases and health crises. Two federal health policy experts confirmed that the money was set to fund:
Malaria and Tuberculosis: Programs aimed at prevention and treatment in high-risk regions.
HIV/AIDS: Specific support for PEPFAR, the flagship U.S. program for AIDS relief.
Maternal and Child Health: Funding for safe childbirth facilities and infant nutrition.
Global Health Security: Efforts to prevent the international spread of emerging diseases.
In addition to the global health funds, the administration is also redirecting approximately 1.2 billion dollars originally intended for general foreign development assistance.
Projected Human Toll of the Funding Shift
Think tanks and policy analysts are warning that the lack of this funding will have immediate and catastrophic consequences. Analysis by the Health Security Policy Academy suggests that the 2 billion dollar reduction could lead to:
121,000 preventable deaths from tuberculosis.
47,600 preventable deaths from malaria.
22.9 million children under the age of 5 losing access to lifesaving nutrition.
5.7 million women losing access to safe childbirth facilities.
These estimates come on top of a previous study published in The Lancet which warned that the overall dismantling of USAID and cuts to foreign aid could result in 14 million additional deaths by 2030 if current trends continue.
Democratic Resistance and Legal Questions
A group of 17 Senate Democrats, led by Senator Brian Schatz, has sent a formal letter to Secretary of State Marco Rubio and the Office of Management and Budget (OMB) demanding a reversal of the decision. The senators argue that the administration is engaging in an "illegal impoundment" of funds that were specifically mandated by Congress to save lives.
"There is no reason for this 2025 funding to be withheld to cover the wasteful costs this Administration has incurred because it chose to dismantle USAID," the senators wrote. They have requested a timeline for the restoration of the funds by May 8, 2026.
PEPFAR Under Pressure
The redirection of funds is happening alongside a massive "underspend" in the U.S. flagship HIV/AIDS program, PEPFAR. Analysts report that roughly 1.7 billion dollars in previously approved money for the program has yet to be spent or transferred to the Centers for Disease Control (CDC).
Data released this year shows that while the number of people on antiretroviral treatment remains stable, the number of HIV tests funded by PEPFAR dropped by 14 million in the last year—a 17 percent decrease. Experts warn that this decline suggests millions of new infections may be going undiagnosed, potentially reversing decades of progress in the global fight against the virus.
The State Department and OMB have not yet provided a formal response to the reports of the funding redirection or the senators' demands.
Explore NBCPalmSprings.com, where we are connecting the valley.
By: NBC Palm Springs
May 7, 2026
Latest Instagram Posts
At the annual 9/11 Memorial Stair Climb at Morongo Casino Resort & Spa, first responders, families and community members came together to honor the lives lost—and the heroes who answered the call 25 years ago on September 11, 2001. Two first responders who responded to opposite sides of the World Trade Center met for the first time at the event, sharing a powerful moment of remembrance and connection. 26 flights. Three times. One enduring message: Never Forget. #NeverForget #September11 #911Memorial #MemorialStairClimb #FirstResponders HonorAndRemember 911
Palm Desert’s future takes center stage next week. The Palm Desert Area Chamber of Commerce presents the 2026 State of the City Address & Luncheon on Friday, September 18, at the JW Marriott Desert Springs Resort. The event brings together local business leaders, community members and city stakeholders for an inside look at the priorities, opportunities and future of Palm Desert. Friday, September 18 11:30 a.m. – 1:30 p.m. JW Marriott Desert Springs Resort Palm Desert Individual tickets are $85 for Chamber members and $95 for non-members. Get the details and registration information from the Palm Desert Area Chamber of Commerce. #PalmDesert #StateOfTheCity #CoachellaValley #PalmDesertBusiness #GreaterPalmSprings #PalmDesertChamber
25 years later, the memories of 9/11 remain vivid for the firefighters who witnessed the tragedy firsthand. A longtime FDNY firefighter reflects on the trauma, loss and moments that have stayed with him a quarter-century after the attacks. #911 #September11 #NeverForget #FDNY #Firefighter #911Anniversary #25YearsLater #NewYorkCity #Remembering911 #NBCTPalmSprings
A troubling history is coming to light in a Palm Desert husband’s death. 65-year old Vicky Kim is accused in the death of her husband — but prosecutors say she had previously faced several domestic violence cases involving him. The Riverside County District Attorney’s Office says it had secured protective orders against Kim before a judge later resolved her cases as misdemeanors, released her from custody and terminated those orders. Now, Kim is expected to be arraigned in connection with her husband’s death. Court records allege the weapon used was a flagpole.
☕️🔥 How hot is TOO hot? A new study finds that drinking scalding-hot beverages may be linked to nearly 3 times the risk of esophageal cancer—the most common type of cancer affecting the esophagus. The takeaway? Let that coffee, tea or other hot drink cool down before taking a sip. ❤️ #HealthNews #EsophagealCancer #CancerRisk #HotBeverages #Coffee #Tea #CancerAwareness #HealthyHabits #HealthTips
☕️ Social Time with Thalia & Jerry. The squishy craze!
Coachella city council unanimously approved an anti-nepotism rule that ban an any Councilmember from appointing a family member or household member to the city’s commissions and committees. Tune in to our 11 p.m newscast as our @newsbyalondra breaks down the policy.
An anti-nepotism rule will be discussed and voted on at tonight’s Coachella City Council meeting - that would ban city council members from appointing their own family members or household members to commissions and committees. Tune in to our 8:30 p.m newscast and our socials and website as our @newsbyalondra brings us the latest details on that final vote.
☕️ Social Time with Thalia & Jerry. What’s your favorite NFL team?
A major cleanup is underway after powerful waves damaged 14 beachfront homes near Capistrano Beach in Orange County. Residents are concerned their homes could remain vulnerable without protective measures in place. Crews are clearing debris, while efforts to bring in protective boulders were delayed by high tide. #California #OrangeCounty #CapistranoBeach #CoastalWaves #Beachfront #WeatherNews