The U.S. Agency for International Development (USAID) has long been a cornerstone of American foreign policy, providing humanitarian assistance, economic aid, and development programs to countries worldwide. However, USAID is now facing its most significant challenge yet, as former President Donald Trump and billionaire entrepreneur Elon Musk seek to dismantle it.
In recent weeks, Trump’s administration has implemented drastic changes that have frozen billions in aid, forced layoffs of thousands of workers, and shuttered critical humanitarian programs. Meanwhile, Musk, empowered by Trump’s second term and his newly created Department of Government Efficiency (DOGE), has launched a full-scale attack on USAID, calling it a “criminal organization.”
But what is USAID, why is it under attack, and what does this mean for the world? Let’s break it down.
What Is USAID?
USAID was established in 1961 by then-President John F. Kennedy at the height of the Cold War. The agency was created to streamline U.S. foreign assistance efforts and counter Soviet influence globally. USAID operates as an independent agency, though it works closely with the State Department.
Since its creation, USAID has provided aid to countries in need, responding to disasters, combating poverty, and promoting global stability. Despite the fall of the Soviet Union in 1991, USAID remains a key player in international development, often seen as a counterbalance to China’s growing influence through its Belt and Road Initiative.
The Trump Administration’s Crackdown on USAID
The Foreign Aid Freeze
On January 20, 2025, Trump reinstated his “America First” agenda with a 90-day freeze on foreign aid. Just four days later, Peter Marocco, a returning Trump official, drafted an unexpectedly strict interpretation of the freeze, effectively shutting down thousands of USAID-funded programs worldwide.
Mass Layoffs and Program Shutdowns
The freeze resulted in thousands of furloughs and layoffs, leaving humanitarian organizations scrambling to figure out how to continue their missions. Employees were locked out of USAID headquarters in Washington, and the agency’s official website and social media accounts were taken down.
Secretary of State Marco Rubio’s Attempt at Damage Control
Rubio, now serving as Secretary of State, has tried to limit the damage by ensuring that strictly life-saving programs—such as emergency food aid—continue. However, the vague nature of the freeze has left many programs in limbo, creating uncertainty among global aid workers and foreign governments.
Why Trump and Musk Want to Dismantle USAID
Trump’s Agenda: “America First” 2.0
Trump has long criticized foreign aid, arguing that it wastes U.S. taxpayer dollars on “corrupt and ungrateful” nations. During his first term, he attempted to cut foreign aid spending significantly, but Congress pushed back. Now, with a more aggressive approach, he is using executive actions to bypass legislative roadblocks.
Musk’s Vision: The Department of Government Efficiency (DOGE)
Elon Musk, an outspoken critic of government inefficiency, has been given unprecedented authority over budget cuts through his newly created Department of Government Efficiency (DOGE). Musk claims that USAID has been “hijacked by bureaucrats” and used to “fund deadly operations.”
Musk’s main criticisms include:
- Allegations that USAID has funded ineffective or harmful programs.
- Accusations that aid money is mismanaged or funneled into corrupt foreign governments.
- A belief that private philanthropy and local solutions are more effective than government-run aid programs.
The Global Impact of the USAID Freeze
The effects of USAID’s shutdown are already being felt worldwide, particularly in regions that heavily depend on U.S. assistance.
Sub-Saharan Africa
- Over $6.5 billion in aid to the region was frozen in 2024.
- HIV/AIDS treatment programs, funded by USAID, have halted, leaving patients without life-saving medication.
- Food aid programs, particularly those targeting malnourished children, have been suspended.
Latin America
- USAID-supported migrant shelters in Mexico are closing due to funding shortages.
- A mental health program for LGBTQ+ refugees from Venezuela has been shut down.
- “Safe Mobility Offices” in Colombia, Ecuador, Costa Rica, and Guatemala—designed to help migrants legally enter the U.S.—have shuttered.
Middle East and South Asia
- Humanitarian assistance in war-torn regions, including Yemen and Afghanistan, has been paused.
- Efforts to rebuild communities devastated by natural disasters and conflicts have been halted.
Public Perception of Foreign Aid
Americans Believe Foreign Aid Spending Is Too High
A 2023 AP-NORC poll found that 6 in 10 Americans believe the U.S. spends too much on foreign aid. However, most Americans significantly overestimate the actual budget for foreign assistance. A Kaiser Family Foundation survey showed that many believe foreign aid accounts for 31% of the U.S. budget, when in reality, it is less than 1%.
Partisan Divides
- Republicans tend to view foreign aid as wasteful and favor cuts.
- Democrats generally support foreign assistance as a diplomatic and humanitarian tool.
Can Trump Legally Dissolve USAID?
Congressional Authority vs. Executive Power
Technically, Trump does not have the constitutional authority to dissolve USAID outright—Congress must approve such a move. However, Trump is employing other tactics to weaken the agency, including:
- Budget Freezes: Delaying the release of Congress-approved funds.
- Executive Orders: Restructuring USAID to give the State Department more control.
- Regulatory Maneuvers: Stripping USAID of key functions and transferring them to other agencies.
The Impoundment Control Act
In his first term, Trump attempted to freeze foreign aid but was blocked by the Government Accountability Office, which ruled his actions violated the Impoundment Control Act. If he continues using these tactics, he may face legal challenges once again.
The Future of USAID
The fate of USAID remains uncertain. Trump and Musk’s aggressive cuts could permanently weaken U.S. humanitarian efforts, shifting the balance of global aid to countries like China. While congressional Democrats are likely to fight back, the battle over USAID will be a defining issue in Trump’s second term.
Musk’s Warning: “Live by Executive Order, Die by Executive Order”
Elon Musk recently posted on X (formerly Twitter), “Live by executive order, die by executive order,” in reference to USAID’s future. This suggests that if the current administration succeeds in weakening the agency, a future Democratic president could just as easily reinstate it.
Conclusion
USAID has played a crucial role in global development and diplomacy for over six decades. However, with Trump and Musk leading an unprecedented effort to dismantle it, the agency’s survival is at risk. While critics argue that USAID is inefficient and politically driven, supporters believe it is essential for maintaining U.S. influence and providing humanitarian relief worldwide.
As the debate unfolds, one thing is clear: the future of U.S. foreign aid is on the line, and the world is watching closely.