The decision by Donald Trump’s administration to suspend the independent aid agency USAID has ignited debate over its legality, consequences, and the future of U.S. foreign aid. The move signals a major shift in America’s global engagement, raising concerns among lawmakers, aid recipients, and international allies.
What is USAID?
Founded in 1961 by President John F. Kennedy through an executive order following the passing of the Foreign Assistance Act, USAID was established to promote economic development and humanitarian aid for developing countries to counter Soviet influence during the Cold War.
See also: A brief history of USAID
It manages 60% of U.S. foreign aid and operates with a workforce of over 10,000, two-thirds of whom serve overseas in over 130 countries. USAID receives its funding from Congress, which allocates resources based on requests from the administration.
In 2023, USAID disbursed US$43.4 billion which accounted for less than 1% of the U.S. federal budget. From this, the largest funding allocations were directed to governance (US$16.8 billion), humanitarian aid (US$10.5 billion), health (US$7 billion) with additional funding for agriculture (US$1.3 billion), education (US$1.1 billion), and economic growth ($0.7 billion). The top three aid recipients by region were Europe and Eurasia with US$17.2 billion, sub-Saharan Africa with US$12.1 billion, and the Middle East and North Africa with US$3.9 billion.
How has the White House justified the suspension of USAID operations?
The Trump administration has frozen USAID’s operations for 90 days to conduct a review of foreign aid programs, arguing that they are misaligned with U.S. interests and do not fit with the priorities of ‘America First’. The executive order issued on January 20, 2025 initiated this freeze and cited concerns about mismanagement and inefficiency.
Elon Musk, head of the White House’s Department of Government Efficiency, called USAID a “criminal organization” and has advocated for its dissolution.
In February 2025, USAID’s workforce was originally slashed to 294 essential staff globally although this has subsequently increased to 611.
Does USAID have reporting mechanisms in place?
USAID has a reporting system to ensure transparency and accountability. It publishes annual reports outlining its activities, financial statements, and outcomes, with oversight from the Office of the Inspector General and the Government Accountability Office. Public platforms such as ForeignAssistance.gov provide access to data on U.S. foreign aid spending. The Congressional Research Service also provides lawmakers with in-depth assessments of USAID operations.
How have the main USAID beneficiaries reacted to the suspension?
The suspension has caused alarm among USAID’s primary beneficiaries who depend on U.S. aid for development and humanitarian assistance.
- Ukraine organizations have expressed concerns over the potential disruption to emergency programs at a time when the country is at war with Russia.
- In response to the 90-day suspension of most foreign aid, officials in Nigeria have established a committee to ensure the continuity of USAID-funded health programs.
- Pio Smith, Regional Director for Asia and the Pacific of the United Nations Population Fund warned that the suspension of U.S. foreign aid programs “has placed millions of vulnerable women and girls in crisis zones at life-threatening risk”.
See also: Kenya’s 2024 humanitarian aid landscape: Impact of US 90-day aid suspension
Do American civilians back this decision? What about politicians?
Several studies indicate that many Americans believe the U.S. spends 25% of its federal budget on foreign aid whereas in fact, it accounts for less than 1%. While some see the strategic benefits of foreign aid, many favor reallocating resources to domestic priorities.
In terms of politicians, some Republican senators such as John Barrasso and John Thune have supported the decision, arguing that the administration has the right to review and prioritize foreign aid spending. While Senator Susan Collins agreed that USAID needed oversight, she criticized the lack of advance notice to Congress.
Meanwhile, Democrats led by Senator Chris Coons and Senator Jeanne Shaheen have stated that USAID plays a critical role in national security. They have warned that the suspension undermines diplomatic and humanitarian efforts and US global standing. Senator Chris Murphy and Republican Gerry Connolly labelled Trump’s actions a “constitutional crisis” and pledged legal and legislative opposition.
Is Trump legally entitled to close USAID down?
President Trump cannot unilaterally dissolve USAID without congressional approval, as reported by Just Security. USAID was established through the Foreign Assistance Act of 1961 making it a statutory agency that only Congress can abolish. While the Trump administration has explored merging USAID into the State Department under Secretary Marco Rubio, such a move would still require congressional approval as USAID’s independence was reaffirmed by law in 1998.
What next?
The suspension of USAID is expected to significantly impact U.S. global influence. Experts have commented that the move will further disrupt vital humanitarian efforts, weaken U.S. leadership in foreign aid, and create a power vacuum that rival nations like China and Russia may exploit.
See also: Supporting US organizations: up to 90 days of free access to tenders and grants
