On March 21, 2025, news agencies reported that the Trump administration is poised to revamp U.S. foreign aid, unveiling a controversial plan focused on restructuring the U.S. Agency for International Development (USAID). This initiative marks a significant shift in U.S. foreign policy, as it aims to cut assistance to foreign countries significantly, reflecting Donald Trump's long-standing position on reducing unnecessary spending in international support.
According to insiders familiar with the administration's strategy, the proposal suggests suspending most foreign assistance for at least 90 days, during which time Elon Musk, the famed technology entrepreneur, would oversee a reevaluation of government spending related to international aid programs.
"This collective action comes as a significant shift in U.S. foreign policy, aiming for more accountability and efficiency in aid distribution," asserted officials from the Trump administration. Their argument centers on the inefficiency of current aid practices, which they claim do not promote U.S. interests adequately.
In the proposed restructuring, USAID's administrative framework is to be narrowed to enhance funding efficiency. For instance, it has been reported that over 80% of previous funding could be eliminated, jeopardizing crucial relief efforts that support food and medical assistance for vulnerable populations worldwide. As part of this plan, many USAID personnel were expected to be laid off or have their positions vacated.
"The restructuring of aid will enhance our national security,” added Donald Trump, emphasizing that streamlining this process is vital in our effort to ensure taxpayer dollars are not spent on programs not aligned with U.S. goals.
Meanwhile, in Vietnam, officials from the Ministry of Foreign Affairs remain cautiously optimistic. Pham Thu Hang, a spokesperson for the ministry, noted in a press briefing on March 20 that the U.S. government intends to continue cooperation, especially in efforts to mitigate the long-term effects of war between the two nations. "Our commitment to rebuilding relationships through cooperation rather than through aid dependency remains paramount," she stated.
The Vietnamese government, under the looming threat of major cuts to USAID contributions, has reiterated its desire for the continuation of projects that focus on demining and environmental cleanup initiatives. While Trump's administration may drastically reduce aid by more than 90% for various projects globally, Hang insisted that cooperation in Vietnam remains critical and should not be overlooked, stating, "Our cooperation for overcoming war aftermaths is foundational to U.S.-Vietnam relations, contributing significantly to peace."
The proposed overhaul includes a mission shift for USAID, effectively changing its scope to humanitarian-focused assistance under the proposed U.S. Agency for International Humanitarian Assistance, which would streamline programs aimed more directly at global health, emergency responses, and food security. Political and humanitarian programs focusing on democracy promotion and human rights, among others, would revert directly under the State Department's purview.
Looming over these discussions, however, is a recent court ruling issued on March 18 that stopped Trump and Musk from implementing the closure of USAID. The court deemed such actions potentially unconstitutional, leading to uncertainty about the future operations of the agency.
In responses to these developments, officials within USAID have started preparing for the next steps amid the turbulence. Many of the newly appointed leaders highlighted their commitment to maintaining ongoing humanitarian projects, ensuring that critical initiatives not only continue but also function efficiently.
"The priority is to manage ongoing humanitarian assistance projects that can save lives—around 1,000 programs worldwide," they remarked in emails shared the day after the ruling, expressing dedication to delivering aid to those in need despite the proposed changes.
As the implications of Trump's transformation of foreign aid unfold, both supporters and critics are weighing in. Advocates for drastic cuts argue that the overhaul is necessary to prevent waste, while opponents fear that such moves could unravel decades of diplomacy and humanitarian progress.
With an uncertain future ahead for foreign assistance and the vital role of USAID, the impacts of these proposed changes on global humanitarian efforts and U.S. standing on the world stage remain to be seen.
