What is USAID? The Growing Debate Around Shutting Down USAID
Recently, the discussion of the future of the United States Agency for International Development has become a hot topic, coupled with discussions of its dissolution. There is an ongoing debate, reportedly filed by both the Trump administration and tech billionaire Elon Musk. So what exactly is USAID, and why all the shutting down USAID creating fuss?
What is USAID and What Does It Do?
Created in 1961 by President John F. Kennedy, the USAID is the United States Agency for International Development that was envisioned to meet global challenges posed by poverty, disease, and the looming threat of Soviet influence during the Cold War. Its foremost mission is humanitarian assistance to the needy, including poverty eradication, public health, education, and relief from disaster. Today, USAID is working in over 100 countries and is one of the largest international aid agencies in the world.
It plays a fundamental role in addressing challenges from global health crises to supporting democratic governance. It funds a wide range of development programs-from improving maternal and child health to the prevention of infectious diseases, particularly malaria and tuberculosis, from emergency relief to economic growth. USAID engages in building local government and institution capacity so that it can help it become self-sustaining in the long term.
Despite its long-standing global role, the Trump administration has expressed its desires to rather collapse USAID into the State Department. The proposed merger would then see USAID stripped of its autonomy. To this extent, rather than moving foreign aid into a multi-disciplinary model, there would remain attempts to run the humanitarian side of activities and programs unhindered. This approach-formerly touted as a step to cut what it views as unnecessary bureaucratic investiture in the federal government-is aimed at ensuring a more engaged US foreign policy in the Middle, and probably other, areas of the world.
Shutting Down USAID: A Response to Federal Bureaucracy?
The Trump administration, led by President Donald Trump and supported by Elon Musk, has openly criticized USAID as inefficient; Musk has called it a “criminal organization.” The administration has indicated that the USAID 2023 budget, which exceeded $40 billion, accounted for a hefty portion of U.S. foreign aid spending, leaving many critics to wonder if those funds helped or hindered U.S. interests.
In recent years, both Trump and Musk have consistently advocated for a reduced government spending on foreign aid. Various critics of the agency have pointed out that billions spent annually by USAID could be best spent domestically, alleviating challenges like infrastructure, healthcare, and education. Particularly in his comments, Trump conveyed that foreign aid is an unnecessary expense and does not comply with his “America First” platform.
AP Photo/Carolyn Kaster
While some perceive the proposed closure as an opportunity to sufficiently cut wasteful spending, others believe such a move would cut short America’s ability to meaningfully assert itself on a global front and shield its security interests. USAID has at the forefront of providing aid for ongoing conflicts and supplying air support to aid instability in strategically crucial nations. It is also among the leading aiding agencies in the delivery of humanitarian assistance whenever a natural disaster, pandemic, or war strikes.
The cancellation, by the administrative view, would surely ensure that these funds don’t go to waste and, by extension, be used more effectively. With the moving budget of USAID more snugly under the umbrella of the State Department, the Trump administration is, in essence, looking to over-bridge the aid agency and United States foreign policy. They feel certain that an oversight by the State Department will hold USAID much more accountable and protect U.S. taxpayer funds.
Critics maintain that shutting off USAID would damage US capability to respond to humanitarian crises around the world. Programs that offer life-saving assistance to millions, such as HIV treatment and food aid, would be dramatically disrupted. This is a significant concern in countries like Ukraine, Yemen, and Somalia, where USAID’s work is critical. All this also implies that USAID is among the few U.S. agencies functioning in countries where the U.S. has limited diplomatic relations, specifically, North Korea and Iran. Bringing USAID under the umbrella of the State Department could hamper its ability to provide neutral humanitarian aid in such regions.
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Winds + Icy Political Storm on the Future of USAID
The political fallout surrounding the prospective closure of USAID has been so severe that many senior officials at USAID have been placed on administrative leave. This includes the director of security. Disarray ensued in the agency when Musk’s government efficiency team was barred from USAID’s secure computer systems, continuing the controversy.
Opponents of the proposed closure warn that abolishing the agency may be impeding on federal law, as USAID is authorized by Congress. It was established as an independent agency with the passing of the Foreign Assistance Act in 1961 to create the foundation of its mission and funding structure. Since then, both Democratic and Republican administrations have managed it, even though its accomplishment has been bipartisan in nature. Yet the present administration’s plan has sparked outrage among senators, including some Republicans, who worry about its threat to American global leadership and national security.
In the U.S. Senate, Democratic lawmakers, including Senator Brian Schatz, denounced the action as illegal and detrimental to national security. They contend that the work done by USAID is vital to maintaining global stability and preventing the spread of diseases such as HIV and COVID-19. In Schatz’s words, “The dismantling of USAID is illegal, and it makes us all less safe. It was established through an act of Congress, and its funding is decided by Congress. The really ridiculous idea that Donald Trump or Elon Musk could just wave the magic wand and make that whole thing go away is absurd. They have to go and pass a law to do so.”
Disastrous Effects of Shutting Down USAID
If the Trump administration succeeds in shutting down USAID, the full scale of what is likely to happen is daunting. USAID is one of the major agencies providing assistance in conflict areas, disaster-struck areas, and regions hit by poverty. The agency’s contributions are not solely in line with immediate humanitarian aid; it offers its expertise in long-term development projects in education, water infrastructure, and economic growth.
For 2023, USAID received more than $40 billion in combined appropriations, which amounts to less than 1 percent of the total federal budget. While that may sound insignificant in the entire scope of things, it very much goes to informing and influencing general global development discussions. Support is accorded to USAID with more than 130 countries, the biggest recipients being Ukraine, Ethiopia, Jordan, and Yemen.
Without USAID exercising such a wide reach globally, it would be nearly impossible for the United States to keep its hold as a global player in the crucial regions. Additionally, uncertainty looms over all the non-governmental organizations and donor communities that depend on American cash as they wait for the next move towards disbursing the actual funds. Thousands of aid workers can be laid off, and hundreds of millions could be displaced as life-saving medical humanitarian services come to a halt.
Moreover, many critics claim the proposed shutdown could damage U.S. soft power. USAID has operated for decades as the primary tool for supporting democracy, good governance, and human rights abroad. Elimination of this agency would mean the loss of one of the most effective instruments for fostering amicable relations with developing countries.
What is Next for USAID?
Philipps is still holding out hope for the current discussions regarding a potential merger of USAID and the State Department to renew the much-discussed demerger or other forms of continuation in existence. The Secretary of State, Marco Rubio, has proclaimed he is now the acting head of USAID, despite the efforts to streamline its upper levels. Everything is on hold until it is clear from Washington whether the shutdown will actually go through or if Congress will intervene to stave off defense of independence for the bureau.
The Trump administration may move in the next weeks and months to present its formal proposal for such a restructuring of the USAID program that Congress will find to be highly disruptive. Given this agency’s relevance to global development and national security, the debate of the future of USAID is far from over.
In the meantime, the world watches while the U.S. weighs the following question: Is the proposed shutdown of USAID in the best interests of the U.S., or will it forever tarnish humanitarian interventions by the global power?
References:
https://www.devex.com/news/money-matters-the-demolition-of-usaid-how-much-is-at-risk-109099
