The Trump administration has launched a sweeping overhaul of U.S. foreign aid, cutting 83% of USAID programs in what critics call an unprecedented shake-up. The remaining initiatives will be transferred to the State Department, a move Secretary of State Marco Rubio says aims to enhance efficiency.
What is USAID?
The U.S. Agency for International Development (USAID) is responsible for providing billions of dollars in foreign aid annually to combat poverty, treat diseases, and respond to humanitarian crises worldwide. The Trump administration has long accused the agency of mismanagement and inefficiency, leading to its drastic restructuring.
Why is the Trump Administration Against USAID?
The Trump administration has frequently criticized USAID, claiming it wastes taxpayer money, funds ineffective programs, and, in some cases, even works against U.S. national interests. Rubio stated that after a six-week review, the administration found USAID contracts had misallocated tens of billions of dollars. Additionally, conservative policymakers have long pushed for reducing foreign aid, arguing that funds should be redirected to domestic priorities.
Why Were USAID Programs Terminated?
Announcing the decision on Monday, Rubio revealed that 5,200 USAID contracts had been terminated. The restructuring was influenced by the Musk-backed DOGE office, which has been driving aggressive federal spending cuts. Elon Musk, a longtime critic of USAID, called the decision “tough but necessary,” insisting that the agency should have always been under the State Department.
Backlash and Criticism
The decision to dismantle USAID has faced strong opposition from humanitarian organizations, foreign governments, and political leaders across the spectrum. Key points of criticism include:
- Humanitarian Groups Condemn the Move: Aid organizations warn that cutting USAID will have devastating consequences, leaving millions without access to food, healthcare, and disaster relief. Some have labeled the cuts a “death sentence” for vulnerable populations.
- Bipartisan Concerns in Congress: While some Republicans support the cost-cutting measures, many lawmakers from both parties argue that slashing foreign aid undermines U.S. leadership and global influence.
- International Outrage: Countries that relied on USAID funding have expressed frustration, with some considering alternative alliances with China and Russia, both of which have been expanding their foreign aid initiatives.
- Legal Challenges and Protests: Several lawsuits have been filed against the administration, with courts ordering nearly $2 billion in unpaid humanitarian fees. Protests have erupted in major U.S. cities and international capitals, demanding a reversal of the decision.
- Confusion and Mismanagement: Reports indicate that the abrupt cancellation of contracts has led to operational chaos, with some terminated programs later being reinstated due to legal and logistical complications.
What’s Next for U.S. Foreign Aid?
With USAID operations largely dismantled, the future of U.S. global aid remains uncertain. Discussions continue on whether the agency will be fully absorbed into the State Department—or eliminated entirely. Meanwhile, ongoing legal battles and international responses will likely shape the administration’s next steps in this high-stakes policy shift.