The Trump administration plans on cutting funds from the United States Agency for International Development (USAID) and merging it with the state department, with Elon Musk saying Trump has signed off on a complete shut down of the agency.
USAID is the top contributing agency distributing billions of dollars in developmental aid worldwide, and shutting it down could cost thousands of American jobs as well as foreign ones. So what does this all mean? Let’s break it down.
USAID was established in the 60s’
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The aid agency was established by President John F Kennedy in 1961 and has a budget of almost $40bn, which is the majority of where the $68bn allocated by the US government for foreign aid spending went in 2023, as an example.
The agency also has around 10,000 employees, and operates in over 60 countries, according to the BBC.
What does USAID do?
The agency funds a range of activities and developmental initiatives abroad, most of which benefit America in the long run.
It operates a lot of health programs like offering polio vaccinations, providing food for the starving, and conducts research to detect where famines might emerge next.
It supports global development
USAID also spends billions annually for global development and aid, promoting democracy building, alleviating poverty, treating diseases, and responding to famines and natural disasters across the globe.
It also supports non-government organizations, social initiatives, and independent media, practically advocating for an overall better quality of life across the globe.
Where does USAID operate?
USAID has bases in over 60 countries and has provided humanitarian efforts mainly in areas like Ukraine, Asia, sub-Saharan Africa, and Europe.
The agency gets $44bn from the $64bn allocated by the US government for international aid, making the US the largest contributor to international development and aid in the world.
USAID is crucial for the globe
For context on America’s spending through USAID, the UK, which is the fourth largest contributor to international aid, only spent a quarter of this number in the same year that USAID spent $68bn.
Among the many developmental initiatives the agency takes part in, USAID is crucial for disaster relief efforts and prevention of spreading of diseases and famine.
Why is Trump shutting it down?
The returning president is notorious for his strong opinions about international spending. He has claimed that the government spending on foreign aid doesn’t provide enough returns to the American taxpayer, according to BBC.
He initially only ordered the pause of USAID operations for 90 days, but it seems the agency is in danger of funds being significantly cut and possibly a complete shut down.
He’s planning a merger
Following Elon Musk’s allocation by Trump as the head of an unofficial cost-cutting agency, the billionaire said the administration will shut USAID down.
Instead, Trump’s administration plans on merging the agency with the state department, significantly cutting its funds, and effectively shutting it down.
People are losing their jobs
USAID employs around 10,000 people, that’s not counting firms that work in partnership with the agency abroad.
Yesterday, USAID workers were told to stay at home. Hundreds were also locked out of their emails, according to the BBC. So people seem to be losing their jobs with no prior warning.
This affects food and health security
USAID plays a crucial role in health and food security across the globe, providing food and vaccinations for diseases that could cause real global disasters like polio and HIV.
It’s also run by thousands of Americans across the globe, which is the complete opposite of Musk’s false claim that it’s a “viper’s nest of radical-left marxists who hate America,” according to CNN.
It’s now under the Secretary of State
Secretary of State Marco Rubio is now the acting administrator of USAID as of yesterday (3 February) following its takeover by the State Department.
According to CNN, Rubio has called the USAID “a completely unresponsive agency” and has had “frustrations with USAID” since 2017.
A humanitarian official told the news outlet that this effective shut down of USAID could cause a devastating ripple effect on job and food security in America as well as across the globe.
