Today : Feb 03, 2025
Politics
03 February 2025

Trump Administration Considers Shutting Down USAID Amid Foreign Aid Freeze

President Trump and Elon Musk target USAID, potentially merging it with State Department, raising global aid concerns.

The future of the U.S. Agency for International Development (USAID) hangs in the balance as its website went offline over the weekend, coinciding with the Trump administration's freeze on foreign aid. Speculation is rife about whether the agency will be shut down altogether and merged with the U.S. State Department amid pointed criticisms from both President Trump and Elon Musk.

USAID, the world's largest donor of humanitarian aid, plays a key role in providing assistance for the quality and safety of medicines across low- and middle-income countries. Its abrupt disappearance from the digital sphere raised alarms, casting shadows over billions of dollars designated for global relief programs.

Reports indicate tensions between USAID and Musk's new Department of Government Efficiency (DOGE), particularly surrounding access to restricted areas and classified information within the agency. Over the weekend, two USAID officials, including Director of Security John Voorhees, were placed on administrative leave. These developments came just hours after Trump publicly lambasted USAID, remarking, "We're getting them out [USAID officials] and then we'll make a decision." Trump characterized the agency as being managed by "a bunch of radical lunatics," expressing his belief it no longer serves American interests.

Musk, using his X account, echoed Trump's sentiments, labeling USAID as a "criminal organization" mired by "corruption and waste," adding, "It's time for it to die." His comments intensified speculation about the agency's future, particularly with Musk's assertion during an X Spaces stream where he stated he had spoken with Trump, who allegedly "agreed" to shut down USAID based on concerns about partisanship within the agency.

These remarks alarmed Senate Democrats, who penned a letter warning against folding USAID under the State Department. They argued such actions should undergo congressional oversight, emphasizing concerns about access to sensitive personal information of American citizens working with USAID. "This incident raises deep concerns about the protection of U.S. national security," they stressed, voicing their apprehension about how the restructuring could impact America's role as a global aid leader.

According to data, USAID accounted for about 42% of all aid tracked by the United Nations last year. Shuttering this agency would have catastrophic ramifications for humanitarian efforts worldwide, especially as it provides extensive support for pivotal health programs, such as the President's Emergency Plan for AIDS Relief (PEPFAR).

The uncertainty around USAID's future coincides with Trump's push for reassessing America's foreign aid expenditures as part of the administration's "America First" agenda. His executive orders aimed at freezing foreign aid have cast confusion and fear among USAID staff, leading them to wonder about the operational status of their programs. Presently, emergency food programs and military aid to key allies, including Israel and Egypt, remain almost untouched, but many other sectors feel the strain of Trump's freeze.

Global aid organizations have sounded alarms over the potential withdrawal of U.S. engagement from the international arena. Observers highlight the risk of paving the way for other countries, such as China and Russia, to expand their influence as the U.S. recedes from its position as the foremost donor of humanitarian aid.

During the agency's ordinary functioning, it assists low and middle-income countries by providing technical assistance, capacity building, and support to bolster their pharmaceutical supply chains. Yet, with many staffers having noted signs of impending change—flags and signs at USAID headquarters being taken down—there’s palpable tension surrounding the agency.

Senator Chris Murphy (D-Conn.) expressed concerns about legislative legality should Trump attempt to eliminate USAID through executive order. He asserted, "If Trump plans to eliminate USAID, it would be illegal to do by executive order," highlighting fears of increased reliance on nations like China, which might step right back to fill aid voids.

Across the aisle, Senator Joni Ernst (R-Iowa) recommended moving more worthwhile programs under the State Department, ensuring proper oversight. The uncertainty and division created by Trump's moves have left many asking what happens next and who will bear the brunt of the ramifications should USAID be dissolved.

Moving forward, the Trump administration has outlined plans for conducting thorough reviews of U.S. foreign assistance. Meanwhile, the fate of USAID and its accompanying foreign aid initiatives remains uncertain amid mounting partisan disputes.