The staff who remain include employees who specialize in health and humanitarian assistance, the Times said, citing three people with knowledge of the plans who spoke on the condition of anonymity.

Two unions representing USAID staff filed a lawsuit on Thursday over the cuts against Trump and his administration, seeking an injunction to stop the firing and furloughing of employees and dismantling of the agency, the Times said.

The suit argues that the agency cannot be unwound without the prior approval of Congress.

The State Department did not respond immediately to a request for comment from AFP.

USAID officials have also been told that about 800 awards and contracts administered through the agency were being canceled, the report said.

The Washington Post and other US media also carried reports about plans to drastically reduced USAID staffing.

The reports come after the agency announced on Tuesday it was placing its staff in the United States and around the world on administrative leave as it moved to recall employees from overseas postings.

The move is part of a radical drive by Trump and his billionaire ally Elon Musk to shrink the US government, a plan that has shocked Washington and caused angry protests from Democrats and the human rights community.

The aid arm of US foreign policy, USAID funds health and emergency programs in around 120 countries, including the world's poorest regions.

It is seen as a vital source of soft power for the United States in its struggle for influence with rivals including China, where Musk has extensive business interests.

Musk has called USAID "a viper's nest of radical-left marxists who hate America". Trump said last week it was being run by a "bunch of radical lunatics".

The assault on the agency has drawn a swift backlash from aid groups. They say it has already forced the closure of programs including those aimed at HIV prevention and treatment.

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