Menu Menu
[gtranslate]

Are we witnessing the end of USAID?

The Trump administration ordered a funding freeze that shut down USAID’s humanitarian and development work around the globe. Amidst national outcry and protest, a federal judge has ordered a temporary reversal of the order.  

Donald Trump’s presidential inauguration occurred a mere three weeks ago, but in this short time, he has already carried out a number plans laid out during his campaign.

A move to freeze all foreign aid and moving to abolish the US Agency for International Development (USAID) is just the latest in a series of executive orders, with billionaire Elon Musk acting as a close ally in decision-making.

USAID is the main federal agency that works to provide foreign aid assistance to the world’s poorest and most vulnerable. It employs around 10,000 people, two-thirds of whom work overseas, according to the Congressional Research Service.

The organisation is the largest humanitarian operator globally, providing 42 percent of all humanitarian assistance globally in 2023. Of the $68 billion USD spent on aid assistance that year, USAID spending accounted for around $40 billion.

Despite this tremendous contribution to foreign aid, this funding consist of only a small portion of federal government spending in the US. In fact, it accounts for less than 1 percent of the US federal government’s total budget.

Still, Trump has made it clear he wants overseas spending to align with his ‘America First’ approach, arguing that USAID is ‘incompetent and corrupt’.

His sidekick, Elon Musk called USAID a ‘criminal organisation’ and said that it was ‘time for it to die’. Can someone tell this guy to drop the Darth Vader act?

Neither have provided evidence to support their claims.

What has the fallout been?

At the moment, the USAID website and X account are down, so few updates have been made available.

However, reports say that USAID’s many programmes have been shut with no warning. Many of the organisation’s global staff have been placed on leave, with thousands of public health and development programmes ceasing operation.

Essential medicines and food deliveries are now locked in warehouses, with those in need unable to access them. It’s estimated that half a billion dollars worth of food aid managed by USAID is destined to spoil in ports, transit or storage.

The cessation of USAID’s essential services includes the operation of its gold-standard famine detection system, which uses data analysis to predict where food shortages are emerging.

Those affected by the shutdown are amongst the most vulnerable, living in countries like Ukraine, Jordan, Ethiopia, Somalia, the Democratic Republic of the Congo, and Afghanistan.

Could USAID be shut down?

In the latest news, a US judge has prevented 2,000 USAID employees from being forced to go on leave. It also ordered the reinstatement of about 500 additional employees.

Despite this pushback, Trump and Musk appear adamant on moving forward with a plan that would see USAID’s global workforce reduced from about 10,000 staff and contractors to just 600 in total.

That said, while it’s true that the US President does have power over the organisation USAID, Trump cannot abolish it by simply signing an executive order.

It’s probably that any attempt to do so would face strong opposition in the courts and Congress, the latter of which Trump’s party does not hold majority power.

It’s more likely that the Trump administration would settle for transforming USAID into a branch of the State Department, rather than classifying it as a government agency.

But how much the US will spend overseas in the next few years under an Elon Musk-influence, is still in question.

Regardless of what capacity USAID resumes operation, it appears that billions from the government’s long-term foreign aid budget are in jeopardy.

Accessibility