The future of the U.S. government’s primary overseas aid agency is now uncertain, as employees face lockdowns and the Trump administration plans to merge it with the U.S. Department of State.
The United States Agency for International Development (USAID) announced that thousands of employees would be put on leave shortly after President Donald Trump took office again. The agency then recalled workers from its global missions.
Trump has made it clear that he wants U.S. foreign aid to align closely with his “America First” agenda, leaving the international development sector bracing for a significant impact on humanitarian programs worldwide.
On Friday, Trump posted on Truth Social that USAID’s spending is “TOTALLY UNEXPLAINABLE… CLOSE IT DOWN!”
Elon Musk, the tech billionaire involved in the White House’s efforts to reduce the federal government’s size, has previously called USAID “a criminal organization” and claimed Trump has agreed to “shut it down.”
Neither Trump nor Musk provided clear evidence to back their claims, and the president’s push to close the agency is expected to face legal challenges.
What is USAID and what does it do?
Founded in the early 1960s, USAID is tasked with managing U.S. humanitarian aid programs abroad. The agency employs around 10,000 people, two-thirds of whom work overseas, and operates in over 60 countries, working with other organizations that are contracted and funded to carry out much of the on-the-ground work.
USAID’s activities cover a wide array of issues, from providing food in famine-stricken regions to running the world’s most advanced famine detection system, which uses data to predict emerging food shortages.
The agency also plays a key role in global health, funding programs like polio vaccinations in countries where the disease still exists and working to prevent the spread of viruses that could cause pandemics.
Democrats argue that Trump’s move to shut down USAID is unconstitutional as they continue to monitor developments.
Trump’s proposal to merge USAID with the State Department
The majority of USAID’s budget is allocated to health initiatives, including polio eradication and other crucial global health measures. The BBC’s charity, BBC Media Action, is one of the many international organizations receiving funding from USAID. In 2024, the agency contributed $3.23 million, making it the charity’s second-largest donor for that year.
How much does USAID cost the U.S. government?
In 2023, the U.S. spent $68 billion on international aid. USAID’s budget alone accounted for over half of this, at around $40 billion, which represents about 0.6% of the U.S. government’s total annual spending of $6.75 trillion. The majority of USAID funds are spent in Asia, sub-Saharan Africa, and Europe, with a significant portion directed toward humanitarian efforts in Ukraine.
The U.S. remains the world’s largest international aid contributor, far outspending the second-largest donor, the U.K., which spent £15.3 billion in 2023—roughly a quarter of the U.S. expenditure.
Why do Trump and Elon Musk want to overhaul USAID?
Trump has long criticized overseas spending, questioning its value to U.S. taxpayers, with USAID often in his crosshairs. The White House has highlighted certain USAID projects it claims are examples of wasteful spending, including a $1.5 million grant to an LGBTQ group in Serbia, $2.5 million for electric vehicles in Vietnam, and $6 million for tourism in Egypt.
Critics have pushed back against these claims, arguing that the spending was mischaracterized. For instance, the tourism project in Egypt, which began under Trump in 2019, also included water, education, and transportation initiatives in the North Sinai region.
After returning to office, Trump signed an executive order freezing nearly all international spending for a 90-day review. While waivers were issued for humanitarian programs, the announcement disrupted the international development field and its services.
Both White House officials and Musk have been accused of sharing misleading information about USAID’s contracts, with Musk promoting a debunked video suggesting the agency paid for Hollywood stars to visit Ukraine.
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