President Trump imposed a 90-day freeze on USAID funding on January 20, 2025, halting global assistance and placing 10,000 personnel on leave. This suspension disrupts vital programs in health, food security, and disaster relief across multiple nations, and may eventually lead to restructuring or merging USAID with the State Department.
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President Trump implemented a 90-day freeze on USAID foreign assistance, halting fund disbursements and placing 10,000 personnel on leave.
It is an independent agency of the U.S. government responsible for administering civilian foreign aid and development assistance.
It was established in 1961, to promote democratic values, advance global peace and prosperity, and support U.S. security and economic interests.
It operates in over 100 countries, providing financial aid, technical assistance, and grants across sectors like health, education, food security, climate change, and democracy.
On January 20, 2025, President Donald Trump issued an executive order imposing a 90-day freeze on U.S. foreign development assistance.
The order aims to evaluate programme efficiencies and ensure alignment with U.S. foreign policy priorities.
Trump has criticized USAID for wasteful spending and misalignment with national interests, with some officials calling for restructuring or merging USAID with the State Department.
USAID personnel have been instructed to halt disbursement of assistance globally.
About 10,000 USAID employees worldwide have been placed on administrative leave, except for mission-critical personnel.
Essential programs, such as healthcare initiatives and clean water projects, have been paused, creating uncertainty for beneficiaries and partner organizations.
The top countries receiving USAID assistance include Ukraine, Ethiopia, Jordan, Somalia, Congo (Kinshasa), Afghanistan, Nigeria, Syria, Yemen, and South Sudan. These nations depend heavily on USAID for humanitarian aid, health programs, food security, and disaster relief.
The fund freeze will force the cancellation of essential projects, which could impact the quality of life and even endangering lives.
In 2024, USAID received $44.20 billion, accounting for 0.4% of the U.S. federal budget.
The agency distributed this funding across its four sub-components, supporting development projects, humanitarian aid, and technical assistance globally.
USAID contributed to nearly 42% of all humanitarian aid tracked by the United Nations in 2024.
President Trump cannot unilaterally shut down USAID. The agency was established by Congress through the Foreign Assistance Act of 1961 and confirmed as an independent executive agency in 1998.
Abolishing USAID would require congressional approval, which could face significant legal and political challenges. However, the administration can merge USAID with the State Department without congressional action.
Disruption of life-saving programs in health, food security, and disaster relief.
Reduced support for democracy and governance initiatives could lead to political instability in vulnerable regions.
Loss of U.S. influence, diminished U.S. leadership in global development and humanitarian efforts.
Cancellation of development projects could harm local economies and exacerbate poverty.
India’s partnership with USAID has evolved over decades, with funding decreasing in recent years due to India’s objections to certain grant conditions.
In 2024, USAID allocated $79.3 million to India, largely for health programs like HIV/AIDS, TB, and maternal and child health.
The freeze may not severely impact India, however, continuous projects could face disruptions, and the Indian government may need to step in to fund critical initiatives.
The next steps depend on the outcome of the 90-day review and potential restructuring efforts. If the freeze is lifted, USAID may resume operations with revised priorities. If the agency is merged with the State Department, its programs could be realigned to focus more narrowly on U.S. strategic interests.
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UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID)
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PRACTICE QUESTION Q. Examine how changes in U.S. foreign aid policy under Trump reflect broader trends in international development assistance. 150 words |
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