The Trump administration has initiated a significant reduction in American foreign aid operations, with the US Agency for International Development (USAID) as its main target to cut down on federal spending and promote ‘America-first’ policies. Aid recipients in more than 130 countries have been left in limbo.
An HIV clinic in Cape Town, a shelter in Eastern Ukraine, a human rights activist in Uganda, and a hospital in Southeast Asia, all so far and wide, yet all connected. Behind it all: USAID. These far-reaching and lifesaving operations now face an uncertain future.
What is USAID?
USAID is a 10,000 person, billion-dollar agency, that carries out foreign aid programs around the world. President John F. Kennedy created the agency when he signed an executive order in 1961. USAID’s independent status was then codified in 1998 legislation and was reaffirmed by congress just last year. Under the 11 presidents to follow, USAID has been instrumental in helping to elevate poverty, humanitarian issues, global health, food security, and international democracy and rights issues around the world.
It is indeed the world’s largest international humanitarian doner. In 2023, USAID managed $72 billion USD in US foreign assistance, with the largest sums going to Jordan, Ethiopia and the top recipient, Ukraine. While being a substantial amount, these numbers are relatively small in terms of the overall budget, amounting to approximately 1% of the US federal budget.
Allegations of Inefficient Expenditure
The agency’s budget has recently come under intense scrutiny from the Trump administration. In a decisive move last week, the White House began implementing substantial reductions in both USAID’s workforce and funding allocations. There have also been proposals to merge USAID with the state department, as part of the restructuring discussion.
Elon Musk, who President Trump recently appointed to lead the Department of Government Efficiency, says the agency has got to go: “USAID is a ball of worms, there is no apple, and when there is no apple, you’ve just got to basically get rid of the whole thing”. He argues that it is funding radical left causes that are anti-American.
President Trump echoed the sentiment while signing the executive order, stating: “I love the concept, but they turn out to be radical left lunatics”. Further, Secretary of State, Marco Rubio agreed, saying USAID needs to be brought into line, and has since appointed himself as the USAID acting administrator.
The administration has highlighed specific expenditures related to Diversity, Equity and Inclusion (DEI) initiatives funded by USAID.
White House Press Secretary, Karoline Leavitt, detailed several controversial expenditure allocations: “70,000 for a production of a DEI musical in Ireland, 47,000 for a trans-gender opera in Colombia, 32,000 for a trans-gender comic book in Peru… I don’t know about you but as an American taxpayer, I don’t want my dollars going towards this crap, and I know the American people don’t either, and that’s exactly what Elon Musk has been tasked by President Trump to do. To get the fraud, waste and abuse out of our federal government”.
Thus far, a notice has been sent to USAID staff stating that, Trump’s administration will keep just 611 essential workers, placing the rest on administrative leave. Staff have also been locked out of the agency’s headquarters in Washington, and electronically, are no longer able to access their USAID work databases and websites.
US Global Soft Power
While the immediate financial savings appear beneficial for many American taxpayers, experts suggest there could be significant implications for American global influence.
Hardin Lang, Vice President of programmes and policy at Refugees International, provided insight to Al Jazeera: “The fact that you had Russia and China welcome this move tells you a lot about what it is doing to US soft power and the perception of the United States at large.”
The US ‘America-first’ policies and retreat from global engagement may create opportunities for other nations, namely China and Russia, to expand their influence.
Global Consequences
An executive order alone is not enough for the Trump administration to shut down USAID completely. That requires an act of congress. Trump’s republican party holds slim majorities in both houses, and so the future of USAID remains uncertain.
While the Trump administration has not yet fully dismantled USAID, the reduction in funding, staff cuts, and shifting priorities have already seen far-reaching concerns and consequences across the global. While most are in opposition, some support the idea of shutting down USAID, namely, South American countries- long suspicious of American motives and influence in the region. Nayib Bukele, El Salvador’s President, took to social media, writing that “the majority of USAID funds are funnelled into opposition groups, NGOs with political agendas”. Mexico’s President, Claudia Sheinbaum, stated: “the truth is it’s better that they close it down”.
On the other hand, South Africa’s President Cyril Ramaphosa warns: “any reduction in funding would have devastating consequences for millions of lives”. According to the latest Reuters article, “Trump’s Aid Freeze has Sparked Mayhem around the world”. In Ghana and Kenya, anti-malaria supplies remain in warehouses awaiting U.S. approval. In Haiti, a HIV clinic can’t distribute medicine to prevent mother-to-child transmission without U.S. permission.
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