One of the executive orders signed by US President Donald Trump on his inauguration day included a 90-day pause in US foreign aid. This decision led to the temporary suspension of USAID, and later there was talk that USAID was going to be shut down completely. Find out what the agency is and which countries will be most affected by the closure of USAID

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The United States Agency for International Development (USAID) has found itself at the center of a political scandal after the Trump administration announced recently that it was closing it. USAID provides billions of dollars in humanitarian assistance abroad, supporting more than 100 countries around the world, while spending only a small fraction of the federal budget on it. Despite this, President Donald Trump has criticized the agency’s work, so its future is now under great question.

What is USAID? How will the closure of USAID affect the world? We find out further.

What is USAID?

USAID is the international humanitarian arm of the US government that provides assistance to countries in conflict and other “strategically important states” by overcoming poverty, disease and other crises.

The agency was founded by President John F. Kennedy in 1961. The main ideas behind the organization’s creation were to counter Soviet influence during the Cold War and to implement a variety of foreign aid programs based on the idea that American security was linked to stability and economic progress in other countries.

What does USAID do?

According to available information, before its closure, USAID employed more than 10,000 people, most of whom were abroad.

The agency is responsible for addressing a wide range of needs, from women’s health to clean water. The range of activities it carries out is vast. For example, USAID not only supplies food to countries where people are starving, they also use the Global Hunger Detection System, which uses data analysis to try to predict where food shortages will occur.

A significant portion of USAID’s budget is spent on health programs, such as polio vaccinations in countries where the disease is still circulating, and helps stop the spread of viruses that could cause a pandemic.

One of the most important areas of work is HIV treatment, a program that supports 20 million people each year.

USAID has also worked on mine clearance and counterterrorism.

How big is USAID’s budget?

According to CRS, USAID had a total budget of more than $40 billion in fiscal year 2023, which notes that USAID’s budget estimates may be inaccurate. Forty billion dollars is less than 1% of the federal budget.

Which countries does USAID help?

In fiscal year 2023, USAID provided assistance to approximately 130 countries. The top 10 recipients are:

- Ukraine

- Ethiopia

- Jordan

- Congo

- Somalia

- Yemen

- Afghanistan

- Nigeria

- South Sudan

- Syria

The Pacific region received $249 million in aid at the latest count, while Southeast Asia received $1 billion. This funded 2,352 projects, including peacebuilding in Papua New Guinea, malaria control in Myanmar, early childhood development in Laos, and programs to improve education, food security, and school-age health across the region.

All of these programs are currently being reviewed to ensure they are fully aligned with the foreign policy of the President of the United States of America.

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What’s next for USAID?

The agency’s future is currently uncertain. Hundreds of USAID employees and contractors around the world have been furloughed, and some have been laid off after the freeze on U.S. foreign aid.

Elon Musk, who leads the Trump administration’s government efficiency initiative, has said the administration is working to close the agency. However, based on the law, experts say Trump cannot simply close USAID by signing an executive order, and any attempt to do so would almost certainly face serious challenges in the courts and Congress.

One option the Trump administration is reportedly considering is to effectively make USAID a branch of the State Department, rather than a separate government agency.

Closing USAID would affect millions of people around the world and have a major impact on U.S. foreign policy.

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