The United States Agency for International Development (USAID) is currently under intense scrutiny from the Trump administration, which has proposed significant reforms that could potentially lead to a complete overhaul or even closure of the agency.
Understanding USAID
Established in 1961 under President John F. Kennedy, USAID was created to differentiate military from non-military assistance and to restructure U.S. foreign aid distribution. Kennedy emphasized that as the world’s wealthiest nation, the U.S. held a moral and fiscal duty to provide aid, while also recognizing the geopolitical advantages of supporting development in less affluent countries to prevent the rise of totalitarian regimes.
During the Vietnam War in 1971, a foreign aid bill was rejected by the Senate due to escalating concerns about the effectiveness of U.S. aid in advancing national interests. In response, Congress shifted focus towards targeted projects in sectors like agriculture and education.
Despite its long history, questions about USAID’s effectiveness and accountability persist among lawmakers and officials.
USAID’s Mission
USAID’s primary role is to provide humanitarian assistance during global conflicts and emergencies, while promoting public health, education, and human rights. In the 2023 fiscal year, Ukraine received the highest level of USAID funding amid its ongoing conflict with Russia. Other significant allocations included humanitarian aid to Gaza during the violence between Israel and Hamas and initiatives that aim to counter China’s global influence.
Countries like Ethiopia, Jordan, the Democratic Republic of Congo, Somalia, and Yemen also ranked among the top recipients of USAID support in the last fiscal year.
Recent reports indicate that USAID responds to an average of 75 humanitarian crises annually, aiding countries in crisis settings such as Haiti, various African nations, and the Middle East.
Aside from immediate response actions, USAID addresses critical issues such as food security, climate change, and public health, working to prevent potential epidemics from affecting the United States.
The recent administrative decision to suspend USAID’s operations is already creating significant effects globally. For instance, the reconstruction of ten police stations damaged by floods in Pakistan has halted, and a covert educational program for girls in Taliban-dominated Afghanistan faces imminent shutdown.
Financial Overview
In fiscal year 2023, USAID operated with an approximate budget of $40 billion, which constitutes less than 1% of the overall federal budget of $6.1 trillion. The agency provided assistance to around 130 countries during that period.
While other government departments and agencies are involved in foreign aid distribution, USAID has been the chief provider of international assistance for over fifty years, employing over 10,000 staff members, two-thirds of whom are stationed overseas.
Projects funded by USAID are generally executed through partnerships with U.S. and international NGOs, contractors, educational institutions, and foreign governments.
During Trump’s initial term, both the White House and the Senate suggested a restructuring plan for USAID, advocating for the State Department to take charge of U.S. humanitarian aid initiatives.
