The U.S. State Department has terminated over 80% of USAID programs in Yemen, representing approximately 5,200 contracts. Secretary of State Marco Rubio, via X, stated the six-week review determined these programs were detrimental to U.S. national interests.

The remaining 18% of aid, roughly 1,000 programs, will be subject to stricter State Department oversight. This decision follows a 90-day freeze on foreign aid ordered by President Donald Trump, which disrupted numerous aid organizations operating in Yemen.
The aid reduction coincides with the re-designation of the Iran-backed Houthis as a "foreign terrorist organization," exacerbating Yemen's already dire situation. The country faces economic collapse, service shortages, and war-induced famine.
Aid agencies warn of severe food and essential supply shortages, as millions suffer from malnutrition amid rising prices. The UN has repeatedly identified Yemen's humanitarian crisis as among the world's most severe.

Since the conflict began, the U.S. State Department reports providing over $5.4 billion in aid to Yemen. In response to worsening conditions, the UN has appealed for $2.47 billion in 2025 to assist 20 million Yemenis in need of humanitarian aid.