United States Agency for International Development (USAID)

The United States Agency for International Development (USAID) is the USA agency responsible for implementing main foreign assistance and humanitarian aid programs. Established in 1961 by President John F. Kennedy, agency demonstrates leadership in areas such as poverty reduction, improvement of health services, food security and promotion of democratic governance like through activity.

USAID Headquarters building, Washington, United States – Anadolu Agency

USAID manages a large portion of the United States’ international development and humanitarian aid budget and is a comprehensive organization with direct offices in more than 60 countries and programs operating in over 130 countries. The agency provides funding and technical support to respond to humanitarian crises, promote economic development and strengthen U.S. foreign policy.

With the beginning of Donald Trump’s second presidential term, together the use efficiency and political independence of USAID became contentious issues. Thousands of employees were laid off or placed on administrative leave. As of 7 February 2025, it was decided that all directly hired personnel would be placed on administrative leave and only staff in critical roles would continue working. The Trump administration’s attempt to incorporate USAID into the Department of State has cast uncertainty over the agency’s future.

History

The United States Agency for International Development (USAID) was established in 1961 by President John F. Kennedy under the Foreign Assistance Act. The agency was structured as a roof to consolidate U.S. international aid under a single independent, improve coordination and make development projects more active.

Former U.S. President John F. Kennedy signing the legislation establishing USAID, 3 November 1961 – USAID

The creation of USAID was part of efforts during the Cold War era to expand U.S. global influence. The agency was used as a balance element against the ideological and economic influence of the Soviet Union and became part of a strategy to strengthen U.S. allies through development assistance. During this period USAID played a significant important role in U.S. foreign policy by supporting economic development and democratic governance programs particularly in Asia, Africa and Latin America.

USAID has undergone numerous reform within its structure. In the 1990s it was restructured to enhance the effectiveness of U.S. foreign aid and after the 11 September 2001 attacks it developed programs with greater focus on international security and counterterrorism. During the Obama administration USAID placed increased emphasis on climate change global health and education initiatives.

In 2025 the Trump administration announced its plan to end USAID’s independence by integrating it into the U.S. Department of State a move that has sparked road debates over the agency’s future.

Structure and Operations

USAID operates as an independent federal agency linked to but separate from the U.S. Department of State. The agency’s administrator is appointed by the President of the United States and requires Senate confirmation. USAID’s activities are funded through a budget set by Congress and implemented according to annual appropriations.

The agency has more than 60 country offices and implements projects in over 130 countries. USAID’s main work areas are:

1. Humanitarian Assistance and Disaster Response: Provide food health and shelter aid during emergencies such as wars and migration crises.

2. Economic Development and Infrastructure Projects: Support small businesses develop energy projects and increase agricultural production.

3. Health Programs: Deliver medical assistance targeting issues such as HIV AIDS malaria and mother-child health.

4. Democracy and Human Rights Programs: Conduct capacity-building initiatives on judicial independence electoral processes and human rights.

5. Education and Agricultural Development: Support education systems and promote agricultural productivity in less developed countries.

Budget and Expenditures

USAID is the largest single recipient of the U.S. government’s foreign aid budget. In fiscal year 2023 USAID’s expenditures reached $43.79 billion accounting for approximately 60 percent of total U.S. foreign aid spending. Among the largest recipient countries are Ukraine Ethiopia Jordan the Democratic Republic of the Congo Somalia Yemen Afghanistan Nigeria South Sudan and Syria place.

Controversies and Criticisms

USAID has faced criticism over issues such as inefficiency political interference and lack of transparency.

1. Bureaucratic Inefficiency: Critics argue that some of the agency’s programs are overly costly and that expenditures are not effectively monitored.

2. Use as a Foreign Policy Tool: It has been alleged that USAID serves U.S. foreign politics objectives and sometimes provides indirect or direct support to government changes. For example in 2014 efforts emerged to create a government-opposing social media platform in Cuba called ZunZuneo.

3. Financial Management Issues: Reports have indicated that some USAID funds were misused or directed toward ineffective projects.

Recent Developments and Policy Changes

Trump Administration Intervention (2025)

As of 2025 the United States Agency for International Development (USAID) has entered a critical change process due to decisions made by President Donald Trump’s administration. The Trump administration implemented its plan to shrink the agency and integrate it into the Department of State triggering major shifts in U.S. foreign aid policy.

On 20 January 2025 President Donald Trump signed a presidential memorandum suspending all U.S. foreign aid for 90 day. This decision halted all USAID funding and programs leaving the agency at risk of losing its independence and causing a severe setback to global aid operations.

Elon Musk has initiated efforts through a new federal building called the Department of Government Efficiency (DOGE) to reduce and ultimately eliminate USAID. Musk has described USAID as an “irreparable institution” and argued for its closure.

Thousands of USAID employees have been laid off or placed on administrative leave. As of 7 February 2025 it was decided that all directly hired personnel would be placed on administrative leave while only those in specific critical roles would continue working. USAID’s official website and social media accounts have been shut down and the agency’s public outreach activities have been suspended.

USAID In front of the headquarters building a citizen protests in support of closing USAID – Anadolu Agency

Congressional and Political Reactions

The Trump administration’s attempt to shut down or integrate USAID into the Department of State has triggered debate in Congress. Democrats and some Republicans have opposed the closure of USAID arguing that the agency is a vital vehicle in strengthening U.S. global influence. Members of Congress have initiated legal reviews to determine whether the Trump administration has the authority to enact these changes.

U.S. law stipulates that USAID cannot be shut down by the executive branch alone. It has been argued that USAID established under the 1961 Foreign Assistance Act can only be abolished by an act of Congress.

Discussions regarding USAID’s future continue in the U.S. House of Representatives and the Senate with a political and legal struggle ongoing over whether the agency will be fully terminated.