USAID Overhaul: America Tightens Purse, World Pays the Price

A sudden executive action by U.S. President Donald Trump through his appointed Department for Government Efficiency (DOGE) leader Elon Musk has resulting in frozen international funding coupled with sweeping reduction in U.S. Agency for International Development (USAID) personnel. Under Trump’s “America First” agenda the foreign operations at USAID became uncertain across 130 nations leading to critical programs including famine prevention in Africa and education for Afghanistan to face uncertainty.

Following his January 20, 2025 restart of office the Trump Administration eliminated USAID staff from 10,000 to 294 personnel. The cuts on USAID’s operations continue to be blocked by the court although its Washington office persists in lockdown status with its website no longer accessible to users. Important information remained inaccessible due to conflicts between DOGE officials and senior staff who received leave orders.

Elon Musk as part of Trump’s advisory team criticized USAID and convinced his administration to merge the agency into the State Department. Secretary of State Marco Rubio presently works as USAID director while accusing the agency of “insubordination.”

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The federal administration targeted two USAID-funded programs that allocated $1.5 million to the LGBTQ group in Serbia and $2.5 million to the Vietnamese electric vehicle manufacturer. Trump has made baseless accusations regarding corruption which he claims to have observed in Gazan financial operations.

Since its founding in 1961 to oppose Soviet influence USAID has become a critical component of U.S. soft power through executing PEPFAR along with other programs that saved 20 million lives from HIV/AIDS. The experts predict the closure of USAID would enable Chinese expansion but they note the absence of USAID’s human development focus in the Belt and Road Initiative.

The domestic-focused moves initiated by Trump and Musk result in economic costs that primarily harm disadvantaged people across various global communities.

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