What is USAID? Understanding the U.S. Foreign Aid Agency and Why Trump and Musk Want to End It
In recent weeks, the U.S. government has put dozens of senior officials on leave, frozen billions of dollars in foreign aid, and shut down thousands of humanitarian programs. These moves have left aid groups worried about whether they can continue providing help—such as food for malnourished children—to people in need around the world.
The agency at the center of this crisis is the U.S. Agency for International Development (USAID), the main organization responsible for delivering foreign aid. USAID has been around for over 60 years, but it has often been a target for political debate.
Now, with President Donald Trump back in office and billionaire Elon Musk supporting massive cuts in government spending, USAID is once again under attack.
What is USAID?
USAID was created in 1961 by President John F. Kennedy during the Cold War. At the time, the United States and the Soviet Union were competing for influence around the world. Kennedy wanted a better way to use foreign aid to counter Soviet power, so he set up USAID as an independent agency to handle humanitarian and development programs.
Since then, USAID has provided billions of dollars to help fight poverty, improve education, support disaster relief, and fund healthcare programs. One famous example is the President’s Emergency Plan for AIDS Relief (PEPFAR), which has saved millions of lives by providing HIV/AIDS treatment in Africa.
Even after the Soviet Union collapsed in 1991, USAID continued its work. Today, supporters say foreign aid helps counter the growing influence of China, which funds massive infrastructure projects in developing countries through its Belt and Road Initiative.
However, critics argue that USAID wastes money and pushes a political agenda.
Why is Trump Freezing USAID Funding?
On January 20, his first day back in office, Trump froze foreign aid for 90 days to review where the money was going. A few days later, Peter Marocco—a Trump loyalist—made the freeze even stricter, shutting down thousands of programs and forcing many workers to take leave.
Secretary of State Marco Rubio has since allowed certain life-saving programs to continue, but there is still confusion over which programs are exempt. USAID’s website and its social media accounts have also been taken down.
These actions are part of a broader effort by Trump to reduce government spending and cut foreign aid, which has often been a target of Republican administrations.
What Do Critics Say About USAID?
Debates over USAID funding are not new. Republicans often argue that the State Department should have more control over foreign aid, while Democrats generally want USAID to remain independent.
In Trump’s first term, his administration cut funding for many United Nations (U.N.) programs, including the U.N. Population Fund and aid to Palestinians. The U.S. also withdrew from the U.N. Human Rights Council and stopped funding the U.N. agency for Palestinian refugees (UNRWA).
Critics say USAID programs are inefficient and that some of its funding has been misused. But supporters argue that the agency has saved lives and prevented instability in struggling countries, which ultimately benefits U.S. national security.
Why is Elon Musk Targeting USAID?
Elon Musk, in charge of Trump’s new Department of Government Efficiency (DOGE), wants to eliminate many government programs—including USAID. He has accused the agency of funding harmful projects and even called it a "criminal organization" on social media.
Musk is leading a massive effort to fire government workers and cut trillions of dollars in spending, and USAID is one of his biggest targets.
How Does the USAID Freeze Affect the World?
Some of the hardest-hit regions are in Africa, Latin America, and the Middle East, where USAID has been a major source of humanitarian aid.
For example:
In sub-Saharan Africa, USAID gave over $6.5 billion in aid last year, much of it for food and healthcare. Now, HIV patients who rely on U.S.-funded clinics are finding closed doors.
In Mexico, a busy migrant shelter lost its only doctor.
In Colombia, Ecuador, and Guatemala, "Safe Mobility Offices"—where migrants applied for legal entry into the U.S.—have shut down.
Aid groups say it’s unclear how many programs have been shut down or how many workers have lost their jobs.
How Much Does the U.S. Spend on Foreign Aid?
In 2023, the U.S. spent about $40 billion on foreign aid, making it the world's largest provider of humanitarian assistance. However, this amount is less than 1% of the federal budget.
Many Americans believe the U.S. spends far more. According to surveys, people often think foreign aid takes up 31% of the federal budget, when in reality, it is much smaller.
A March 2023 poll found that 6 in 10 Americans think the U.S. spends too much on foreign aid. But the same poll showed that many Americans also want more spending on domestic issues like healthcare, education, and infrastructure.
Can Trump Shut Down USAID Completely?
Legally, Trump cannot eliminate USAID on his own—Congress would have to pass a law to shut it down. However, he can weaken it by freezing funds and reducing its operations, just as he did in his first term.
In 2019, Trump tried to cut the State Department and USAID budgets by one-third, but Congress blocked the move. His administration then froze funds that had already been approved, which was later ruled illegal under the Impoundment Control Act.
Now, some experts believe Trump could try the same strategy again.
Musk has already signaled that he supports this approach. "Live by executive order, die by executive order," he wrote on social media, referring to USAID’s future.
What Happens Next?
With Trump in office and Musk pushing for deep budget cuts, USAID’s future remains uncertain. The next few months will determine whether the agency survives or if it faces even greater restrictions.
For now, humanitarian groups, foreign governments, and U.S. lawmakers are watching closely to see how much of America’s foreign aid program will be left standing.
