How will freeze on USAID affect the world?
The Hindu
President Trump's 90-day freeze on foreign assistance impacts USAID's global projects, including those in top countries like Ukraine and Ethiopia.
On January 20, 2025, his first day in office for a second term, U.S. President Donald Trump put in place a 90-day freeze on foreign assistance. The executive order read: [There will be a] “90-day pause in United States foreign development assistance for assessment of programmatic efficiencies and consistency with United States foreign policy.” Consequently, personnel of the United States Agency for International Development (USAID) were stopped from disbursing assistance across the world. By late last week, the website of USAID also wiped content, leaving just a message that all USAID personnel (about 10,000 globally) would be placed on administrative leave, with a few exceptions for mission-critical personnel. Shortly before the plans to scale back personnel were to take effect, a federal judge issued a temporary restraining order till February 14, but that does not extend to the freeze on funds disbursal.
Elon Musk, head of the Department of Government Efficiency (DOGE), has threatened that the agency would be shut down, while Secretary of State Marco Rubio who is now the acting administrator of USAID, has talked about ‘restructuring’ it.
The U.S. Agency for International Aid was set up as an independent agency, through an Act of Congress in 1961. It was an attempt to align all U.S. efforts to administer civilian foreign aid and development assistance. Its mission is “to promote and demonstrate democratic values abroad and advance a free, peaceful, and prosperous world” while advancing the U.S.’s security and prosperity. In pushing this agenda, it provides financial aid across various sectors in over 100 countries worldwide. Broadly, it works in the sectors of economic development, health, education, food security, humanitarian assistance, climate change, and democracy and governance.
It works in partnerships with governments, NGOs, businesses, and other international organisations, primarily providing grants, technical assistance, and funding for development projects that are in sync with its goals. Notable among its flagship schemes are the President’s Emergency Plan for AIDS Relief (PEPFAR), Feed the Future (addressing hunger and food security issues), Power Africa (expanding access to electricity across Africa) and Water for the World Act (improving water, sanitation, and hygiene services).
It receives funding allocated in the U.S. budget. In 2024, USAID received a total of $44.20 billion, which is 0.4% of the U.S. federal budget for FY 2024 (as per the official website USAspending.gov). In the same year, the agency had distributed $44.20 billion among its four sub-components. Media reports claim it contributed to nearly 42% of all humanitarian aid tracked by the United Nations in 2024.
How will this impact countries?
According to the official U.S. foreign assistance website, the top countries the USAID engages with are Ukraine, Ethiopia, Jordan, Somalia, Congo (Kinshasa), Afghanistan, Nigeria, Syria, Yemen and South Sudan.