USAID

GS 2-IR 

About USAID

Founded in the 1960s, the United States Agency for International Development (USAID) is responsible for managing and distributing international humanitarian assistance. Its establishment was formalized under the Foreign Assistance Act of 1961, granting it a legal foundation through congressional authorization.

USAID operates with a workforce of around 10,000 employees and maintains a presence in more than 60 countries. Its primary areas of intervention include:

• Food Security – USAID provides famine relief and operates an advanced system for predicting food shortages.
• Healthcare – The agency funds immunization programs, supports pandemic preparedness, and works on global disease control.
• Infrastructure and Development – USAID backs initiatives for clean water access, disaster response, and economic development.
• Humanitarian Aid – It plays a crucial role in assisting war-affected regions, such as Ukraine and sub-Saharan Africa.

USAID: Budget and Global Expenditure

In 2023, the United States allocated $68 billion toward international aid, with USAID receiving more than half of that amount—approximately $40 billion.

The largest share of USAID funding is directed toward Asia, Africa, and Europe, with Ukraine being a significant beneficiary. The U.S. remains the world’s leading donor, surpassing other major contributors, including the United Kingdom.

USAID: Criticism and Challenges Under the Trump Administration

Concerns Over Foreign Aid Spending:

• Donald Trump’s Stance – The former president has been a vocal critic of international aid, arguing that it provides minimal benefit to U.S. taxpayers. He issued an executive order halting international aid expenditures for 90 days, which resulted in the suspension of numerous programs.
• Public Sentiment – Surveys indicate that American voters have historically favored reducing foreign aid.
• Elon Musk’s Influence – As a key Trump advisor, Musk has pushed for significant budget cuts, leading to increased tensions between the administration and USAID.

Consequences of the Spending Freeze:

• Essential programs, such as medical aid and clean water initiatives, were put on hold.
• Security concerns emerged, as reports surfaced of prison guards in Syria—who oversee detained Islamic State militants—contemplating abandoning their posts due to funding shortfalls.
• Global humanitarian organizations described the aid suspension as a severe disruption to international relief efforts.

USAID: Can a U.S. President Shut It Down Unilaterally?

Abolishing USAID outright would require congressional approval and would likely face legal opposition.

One alternative strategy being explored involves restructuring USAID under the State Department, similar to how the UK merged its international aid department with the Foreign Office in 2020.

USAID: Global Consequences of Closure

If USAID were to be significantly downsized or dissolved, the international impact could be substantial:

• Humanitarian Concerns – Reductions in funding could disrupt essential initiatives, including demining operations, pandemic response, and medical aid for war victims.
• Foreign Policy Challenges – Critics warn that cutting USAID could diminish U.S. diplomatic influence and weaken international alliances.
• Security Risks – Funding disruptions in conflict regions could contribute to further instability.
• Geopolitical Shifts – A diminished U.S. aid presence might create an opening for nations such as China to expand their global influence through alternative development initiatives.

The potential restructuring or closure of USAID marks a significant shift in U.S. foreign policy, aligning with Trump’s “America First” agenda.

While proponents argue that reducing foreign aid helps conserve taxpayer dollars, critics caution that such a move could lead to serious humanitarian and geopolitical ramifications. The global development community remains vigilant, anticipating further policy changes in U.S. international aid.