Why Do Trump Want to Revamp USAID?

Former U.S. President Donald Trump has been a persistent critic of overseas spending, arguing that it does not provide value for money for American taxpayers. Among the agencies facing his strongest criticism is the United States Agency for International Development (USAID), which he has accused of being run by “radical lunatics.”

Trump’s stance aligns with public opinion, as numerous opinion polls have indicated that American voters support reducing foreign aid spending. According to data from the Chicago Council on Global Affairs, this sentiment has remained consistent since the 1970s.

Trump’s Executive Order and the 90-Day Spending Freeze

One of Trump’s first actions upon returning to office was to sign an executive order that paused nearly all international spending for 90 days, allowing for a comprehensive review. Following this order:

• The State Department issued a memo halting most USAID operations.
• While waivers were later granted for humanitarian programs, the freeze disrupted global aid services.
• Essential programs, including those providing life-saving medication and clean water, were forced to suspend operations overnight.
• A senior humanitarian worker described the freeze as “an earthquake across the aid sector.”

Elon Musk’s Involvement in the USAID Overhaul

Tensions between the White House and USAID intensified when Elon Musk, who has been tasked by Trump to identify federal budget cuts, faced resistance at USAID headquarters. Reports indicate that:

• Musk’s team was denied access to secure financial data at USAID headquarters.
• Two senior security officials at USAID were placed on leave following the incident.
• Speaking on his social media platform X, Musk stated, “With regards to the USAID stuff, I went over it with [the president] in detail, and he agreed that we should shut it down.”

Immediate Consequences: USAID’s Shutdown

The fallout from this dispute was swift:

• USAID’s official website went offline.
• Employees were instructed to stay home.
• Secretary of State Marco Rubio took over as the “acting head” of USAID, accusing its leadership of “insubordination.”
• Rubio emphasized that some core functions would continue, but all spending must align with “national interest.”

Can Trump Legally Shut Down USAID?

While Trump holds significant executive power, shutting down USAID is not straightforward due to legal and congressional hurdles:

• USAID was established in 1961 through the Foreign Assistance Act, which mandates an agency for administering foreign aid.
• John F. Kennedy created USAID through an executive order, but its status was further cemented in 1998, confirming it as an independent executive agency.
• Congressional approval would be required for a complete shutdown, making it difficult for Trump to unilaterally abolish USAID.
• With Republicans holding only a slim majority in Congress, passing legislation to dissolve USAID would face significant opposition.

Possible Restructuring: Merging USAID with the State Department

Rather than outright abolishing USAID, one option reportedly being considered is to restructure it by integrating it into the State Department. This model mirrors the UK’s 2020 decision, where Prime Minister Boris Johnson merged the Department for International Development with the Foreign Office.

• Proponents argue this would align aid spending with foreign policy goals.
• Critics warn it could weaken expertise in international development and harm U.S. global influence.

Global Impact of Closing USAID

USAID is a major force in international aid, and any changes to its structure or funding will have global ramifications. Some of its key programs include:

• Providing prosthetic limbs to Ukrainian soldiers
• Clearing landmines
• Combating Ebola in Africa

The 90-day spending freeze already demonstrated how such changes could destabilize aid operations. For instance:

• The temporary funding cut nearly led to Syrian prison guards abandoning their posts, potentially allowing ISIS fighters to escape.
• Democratic leaders argue these changes jeopardize national security and violate established legal frameworks.

Trump’s “America First” Approach and Future of Foreign Aid

Trump’s broader strategy aligns with his “America First” doctrine, which prioritizes domestic spending over international aid. With Elon Musk playing a central role, further cuts in foreign aid are expected, raising serious questions about the future of U.S. international assistance.

As Trump and Musk push for budget reductions, the world waits to see how these moves will shape U.S. foreign policy and impact global humanitarian efforts.