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What is USAID? Explaining the US foreign aid agency and why Trump and Musk want to end it

by News Desk
1 year ago
in International, Top News, World
What is USAID? Explaining the US foreign aid agency and why Trump and Musk want to end it
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WASHINGTON (news agencies) — Dozens of senior officials put on leave. Thousands of contractors laid off. A freeze put on billions of dollars in humanitarian assistance to other countries.

Over the last two weeks, President Donald Trump’s administration has made significant changes to the U.S. agency charged with delivering humanitarian assistance overseas that has left aid organizations agonizing over whether they can continue with programs such as nutritional assistance for malnourished infants and children.

Then-President John F. Kennedy established the U.S. Agency for International Development, known as USAID, during the Cold War. In the decades since, Republicans and Democrats have fought over the agency and its funding.

Here’s a look at USAID, its history and the changes made since Trump took office.

Kennedy created USAID at the height of the United States’ Cold War struggle with the Soviet Union. He wanted a more efficient way to counter Soviet influence abroad through foreign assistance and saw the State Department as frustratingly bureaucratic at doing that.

Congress passed the Foreign Assistance Act and Kennedy set up USAID as an independent agency in 1961.

USAID has outlived the Soviet Union, which fell in 1991. Today, supporters of USAID argue that U.S. assistance in countries counters Russian and Chinese influence. China has its own “belt and road” foreign aid program worldwide operating in many countries that the U.S. also wants as partners.

Critics say the programs are wasteful and promote a liberal agenda.

On his first day in office Jan. 20, Trump implemented a 90-day freeze on foreign assistance. Four days later, Peter Marocco — a returning political appointee from Trump’s first term — drafted a tougher than expected interpretation of that order, a move that shut down thousands of programs around the world and forced furloughs and layoffs.

Secretary of State Marco Rubio has since moved to keep more kinds of strictly life-saving emergency programs going during the freeze. But confusion over what programs are exempted from the Trump administration’s stop-work orders — and fear of losing U.S. aid permanently — is still freezing aid and development work globally.

Dozens of senior officials have been put on leave, thousands of contractors laid off, and employees were told Monday not to enter its Washington headquarters. And USAID’s website and its account on the X platform have been taken down.

It’s part of a Trump administration crackdown that’s hitting across the federal government and its programs. But USAID and foreign aid are among those hit the hardest.

Rubio said the administration’s aim was a program-by-program review of which projects make “America safer, stronger or more prosperous.”

The decision to shut down U.S.-funded programs during the 90-day review meant the U.S. was “getting a lot more cooperation” from recipients of humanitarian, development and security assistance, Rubio said.

Republicans typically push to give the State Department — which provides overall foreign policy guidance to USAID — more control of its policy and funds. Democrats typically promote USAID autonomy and authority.

Funding for United Nations agencies, including peacekeeping, human rights and refugee agencies, have been traditional targets for Republican administrations to cut. The first Trump administration moved to reduce foreign aid spending, suspending payments to various U.N. agencies, including the U.N. Population Fund and funding to the Palestinian Authority.

In Trump’s first term, the U.S. pulled out of the U.N. Human Rights Council and its financial obligations to that body. The U.S. is also barred from funding the U.N. agency for Palestinian refugees, or UNRWA, under a bill signed by then-President Joe Biden last March.

As a Florida senator, Rubio often called for more transparency on foreign assistance spending, but was generally supportive. In a 2017 social media post, Rubio said foreign assistance was “not charity,” that the U.S. “must make sure it is well spent” and called foreign aid “critical to our national security.”

In 2023, Rubio sponsored a bill that would have required U.S. foreign assistance agencies to include more information on what organizations were implementing the aid on the ground.

Musk’s Department of Government Efficiency, known as DOGE, has launched a sweeping effort empowered by Trump to fire government workers and cut trillions in government spending. USAID is one of his prime targets. Musk alleges USAID funding been used to launch deadly programs and called it a “criminal organization.”

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