The United States Agency for International Development (USAID) is the main federal agency responsible for foreign aid and development assistance. President John F. Kennedy created it in 1961 to separate military and non-military assistance. The agency funds humanitarian aid, public health programs, education initiatives, and economic development projects worldwide. It also promotes U.S. interests by stabilizing countries to prevent the spread of extremism and authoritarian rule.
USAID plays a major role in responding to global emergencies. In 2023, it provided significant aid to Ukraine during its war with Russia and delivered humanitarian assistance to Gaza. The agency also funds programs countering China’s influence in developing nations.
USAID’s Budget and Global Impact
USAID operates with a budget of approximately $40 billion, which represents less than 1% of the U.S. federal budget. In 2023, it provided aid to around 130 countries. The agency employs over 10,000 people, with about two-thirds working in foreign nations.
Most USAID projects are implemented by nonprofit organizations, universities, contractors, or foreign governments. The agency focuses on long-term economic development, democracy promotion, disaster relief, and public health. It has led responses to crises such as the Ebola outbreak in Africa and the reconstruction of war-torn regions.
Trump Administration Freezes USAID Operations
The Trump administration recently ordered all USAID employees to go on administrative leave. An internal memo, posted on the agency’s website, stated that only designated personnel would be exempt. A senior USAID official, speaking anonymously, described the move as an “essentially a shutdown of USAID.”
The administration’s decision follows an executive order Trump signed on Inauguration Day, freezing all U.S. foreign assistance for 90 days. This order has paralyzed the agency, preventing it from carrying out essential aid programs. The USAID website went offline, its headquarters were closed, and staffers were instructed to work from home.
Impact of USAID Shutdown
With USAID operations frozen, several global projects have halted. In Pakistan, work has stopped on rebuilding 10 police stations damaged by floods. A secret program that provides education to girls in Taliban-controlled Afghanistan is at risk of shutting down.
Many foreign aid initiatives, including those providing food and medical supplies to vulnerable populations, have also been disrupted. The halt in funding affects NGOs and contractors who rely on USAID grants to implement projects in impoverished and war-torn areas.
USAID Merging with State Department?
The Trump administration has also announced plans to merge USAID with the State Department. This decision aligns with earlier proposals during Trump’s first term, aiming to consolidate foreign aid under the Secretary of State’s authority. Critics argue that such a merger would weaken USAID’s ability to function independently and politicize humanitarian assistance.
Some Trump allies, including billionaire Elon Musk, have pushed for eliminating USAID. Musk, who has been vocal about government inefficiency, has called the agency wasteful and unnecessary. While Musk does not hold an official government role, his influence in the administration has raised concerns among policymakers.
Critics Warn of Consequences
Former USAID officials and foreign policy experts have condemned the move to dismantle the agency. Jeremy Konyndyk, president of Refugees International and a former USAID official, warned that closing USAID would remove “a huge and important tool of American global statecraft.” He emphasized that USAID strengthens U.S. influence abroad and supports humanitarian efforts that align with national security interests.
Foreign aid has traditionally received bipartisan support in Washington. The U.S. has long been the largest global donor of humanitarian and development assistance. Critics argue that dismantling USAID will hurt America’s global reputation and reduce its ability to respond to international crises.
What Happens Next?
It remains unclear whether USAID will resume normal operations after the 90-day freeze. The agency’s fate depends on ongoing policy discussions within the Trump administration and resistance from Congress. If the planned merger with the State Department proceeds, USAID’s independent role in global development may significantly diminish.
For now, millions of people worldwide who depend on USAID assistance are left in uncertainty. The agency’s shutdown threatens critical aid programs that provide food, healthcare, and education to vulnerable populations. The long-term effects of this decision could reshape America’s role in global development for years to come.
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