The Trump administration’s proposal to merge the United States Agency for International Development (USAID) into the State Department has raised questions about the future of billions of dollars in humanitarian and development assistance to some of the world’s most impoverished nations. USAID, the largest provider of official development assistance globally, has a budget of tens of billions of dollars and operates in over 130 countries, funding programs that address issues from health and governance to food security and education.
What is USAID?
USAID, established by Congress in 1961, serves as the primary humanitarian and development arm of the US government. With a workforce of approximately 10,000 employees worldwide, the agency works closely with Congress and the White House to determine funding priorities, which are approved annually by Congress. USAID’s mission is to provide financial support through grants, contracts, and cooperative agreements to countries in need, especially low- and lower-middle-income nations. In the 2023 fiscal year, USAID managed more than $40 billion in combined appropriations.
Top recipients of aid
USAID provides support to approximately 130 countries. The top three recipients in 2023 were Ukraine, Ethiopia, and Jordan, with Ukraine receiving over $16 billion in macroeconomic support amid the ongoing war. Other notable recipients include Ethiopia, the Democratic Republic of Congo, Afghanistan, South Sudan, and Syria.
USAID’s funding focus
In 2023, USAID allocated around $17 billion to governance-related issues, primarily aimed at supporting Ukraine. Additionally, nearly $10.5 billion was directed toward humanitarian efforts, $7 billion went to health programs, and $1.3 billion was used for agricultural development. Some countries also received direct budgetary support, such as Jordan, which received over $770 million in cash transfers.
Trump Administration moves to shutter USAID
Staffers ordered to stay out of USAID Headquarters
Staff members of the US Agency for International Development (USAID) were instructed to stay out of the agency’s Washington headquarters after billionaire Elon Musk, appointed by President Donald Trump to oversee the government’s overhaul, announced the agency’s shutdown. Musk’s Department of Government Efficiency (DOGE) has been granted significant authority to investigate federal agencies, and the decision to close USAID has sparked outrage.
Rubio takes control of USAID amid layoffs and shutdowns
Secretary of State Marco Rubio confirmed on Monday that he has assumed control of USAID as the acting director, though he delegated the responsibilities to another official. Speaking from San Salvador, Rubio condemned USAID for its lack of cooperation with the new Trump administration, accusing the agency of failing to answer questions regarding its funding and not aligning with President Trump’s policy agenda. Thousands of USAID employees have already been laid off, and key programs have been shut down since Trump took office.
Democrats and critics slam administration’s actions
The Trump administration’s drastic move to shutter USAID has drawn strong opposition from Democratic lawmakers and humanitarian advocates. They have called the effort illegal, vowing to challenge it in court. The decision to dismantle USAID is also being heavily criticized, with many accusing Musk of wielding excessive power in Washington. The agency, which has provided crucial international aid for decades, is a key player in efforts to combat hunger, disease, and educational inequities across the globe.
Why Donald Trump wants to close USAID?
The Trump administration’s move to shut down the U.S. Agency for International Development (USAID) is driven by its goal to streamline government operations and reduce spending. President Trump and his close ally, Elon Musk, argue that USAID is inefficient, overly bureaucratic, and misaligned with the administration’s priorities. Musk, appointed to oversee a broad government overhaul, has pushed for eliminating agencies like USAID, claiming they are wasteful. Critics, however, view this as a drastic move that would harm vital international aid programs, especially those supporting health, education, and food security in some of the world’s poorest countries. The proposed closure has sparked intense debate, with Democrats and humanitarian groups warning of the negative global impact.
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