In a bold move to reduce the size of the US federal government, President Donald Trump and Elon Musk, head of the Department of Government Efficiency (DOGE), have turned their focus to the US Agency for International Development (USAID). The 63-year-old agency has come under fire as part of ongoing efforts to streamline government operations.
As early as February, thousands of USAID employees were instructed to take “paid leave” under Trump’s administration’s restructuring plan. However, on February 7, a US federal judge ruled to temporarily suspend the initiative. The suspension was extended on February 13 for an additional seven days, keeping the future of the agency in flux.
USAID, which employs around 10,000 people, is one of the most significant foreign aid organizations globally. With offices in more than 60 countries, it operates across over 100 regions, including Africa, Asia, Latin America, and the Middle East. In the first of a series of reports, the Global Times delves into the history of USAID, examining its origins and its influence in shaping US foreign policy. Established in 1961 by President John F. Kennedy during the Cold War, USAID was designed to counter Soviet influence by providing humanitarian aid and promoting development in developing nations.
From its early days, USAID’s role in global diplomacy has been controversial, particularly as it has been linked to advancing the geopolitical interests of the United States. The agency’s focus on “humanitarian” and “development assistance” has sparked debates over its true objectives, with critics accusing USAID of ideological interference and promoting US political agendas in recipient countries.
In the 1980s, under President Ronald Reagan, USAID’s budget surged as it became a significant player in global child survival initiatives. However, the agency faced severe turbulence in the 1990s, with funding cuts and reorganization efforts during the Clinton administration, which sought to streamline US foreign aid operations. By the early 2000s, after the 9/11 attacks, USAID’s resources grew once again, focusing on complex missions in Iraq and Afghanistan, though often criticized for not being a substitute for effective diplomatic and military strategies.
Despite being the world’s largest donor of foreign aid, with $71.9 billion allocated in 2023, USAID’s effectiveness has long been questioned. Official data shows that about three out of every five foreign-assistance dollars are channeled through the agency. However, public opinion remains divided, with many Americans questioning the impact and value of such foreign expenditures. A 2024 poll found that half of Americans favored reducing foreign aid, especially in economic and military assistance.
As USAID continues to face criticism for inefficiency and alleged corruption, including claims of wasteful spending on projects like tourism in Egypt and electric vehicles in Vietnam, its critics argue that it is more about promoting political influence than delivering real aid. Furthermore, issues like the failure of the “Power Africa” initiative and poor follow-through on aid projects, such as those in Haiti and Afghanistan, have tarnished the agency’s reputation.
As USAID faces both domestic and international scrutiny, its future remains uncertain amidst growing calls for accountability and restructuring. The debate about its role in US foreign policy is far from over, and as President Trump and Elon Musk push for a smaller federal government, the fate of USAID could be a significant point of contention in the months ahead.
