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The United States agency for international development (
USAID
), long regarded as the country's primary force for humanitarian aid, is facing an uncertain future after being placed under the direction of secretary of state Marco Rubio on Monday. The move, widely seen as a precursor to its potential dissolution or absorption into the state department, has raised concerns among global aid organisations and Democratic lawmakers.
The role of USAID
Founded in 1961 as an independent agency, USAID has been instrumental in delivering essential humanitarian aid, including health services, disaster relief, and anti-poverty programs across the globe. Its work spans a wide spectrum, from supporting war relief in Ukraine and peace-building in Somalia to disease surveillance in Cambodia and vaccination efforts in Nigeria. USAID has played a key role in containing deadly outbreaks, including Ebola, and has been lauded for its ability to respond swiftly to global health crises.
Dr Atul Gawande, a senior USAID official in the Biden administration, recently highlighted the agency's global impact. "We built out a network of 50-plus countries on every continent, developing what I've called the world's immune system -- an ever-accelerating capacity to prevent, detect, and more rapidly respond to pandemic threats," he said in an address before Trump's inauguration, according to NYT.
Budget and operations
Despite its extensive reach, USAID accounts for only a small fraction of the federal budget. With an annual budget of approximately $23 billion, the agency spent $38.1 billion in fiscal year 2023—less than 1% of total government spending. Its efficiency, however, has not shielded it from conservative scrutiny. The recently established department of government efficiency, led by Elon Musk's cost-cutting task force, has identified USAID as a target for budget reductions.
Structural vulnerabilities
USAID's workforce is structured differently from most Washington agencies, relying heavily on contract workers rather than permanent civil service employees. This has made the agency particularly vulnerable to sudden budgetary cuts. Reports indicate that nearly half of USAID's workforce has been eliminated in the past week, with hundreds of contractors fired or placed on leave. Additionally, many nongovernmental organisations (NGOs) that implement USAID programs have been forced to shut down offices due to frozen funding.
The conservative push against USAID
Republican leaders, including Rubio, have criticised USAID for operating as a "global charity" that does not always align with US national interests. The agency has also been the target of foreign governments such as Russia, which view its work as a challenge to their own influence.
Musk and Trump's decision to reevaluate USAID's operations has been met with bipartisan concern. Senator Amy Klobuchar warned on social media that dismantling the agency "would make the world a more dangerous place for Americans and be a gift to China and Russia."
The extent of the funding freeze remains unclear, but internal communications suggest that programs related to diversity, women's reproductive rights, and climate resilience are at immediate risk of being cut.
What happens next?
With Trump's three-month assessment period now in effect, the fate of USAID remains uncertain. While Republican leaders argue that foreign aid should be more closely tied to US strategic interests, Democratic lawmakers insist that dismantling the agency could have dire consequences for global stability and America's international standing. The coming months will determine whether USAID is restructured, downsized, or shuttered entirely—an outcome that could reshape
US foreign policy
for years to come.
