The U.S. Agency for International Development (USAID) is at the center of a political firestorm after President Donald Trump moved to shut it down and merge it into the State Department, citing the need to cut federal bureaucracy.
Since taking office, Trump has repeatedly criticised the agency, calling it a “bunch of radical lunatics.”
Who or what is USAID?
USAID, the US government’s humanitarian and development agency, provides aid to countries facing conflict, poverty, and disease.
The agency was established in 1961 by former U.S President John F. Kennedy to counter the Cold War and manage various foreign assistance programs.
USAID employs over 10,000 people, according to the Congressional Research Service (CRS), and managed more than $40 billion in aid across 130 countries in fiscal year 2023. It is funded by the U.S. Congress in response to administration requests.
In 2023, the top aid recipients included Ethiopia, Ukraine, Jordan, the Democratic Republic of Congo, Somalia, Yemen, Nigeria, Afghanistan, South Sudan, and Syria.
Why Trump is targeting USAID
USAID became a flashpoint when Trump, on his first day in office, signed an executive order pausing foreign aid for 90 days.
“The foreign aid industry and bureaucracy are not aligned with American interests and, in many cases, undermine them,” the order stated. “They serve to destabilise world peace by promoting ideas in foreign countries that are directly inverse to harmonious and stable relations internal to and among countries”.
Following the order, thousands of USAID employees were placed on administrative leave, and some contracts were terminated.
On Monday, its Washington, D.C headquarters was shut down, with staff instructed to work remotely.
Musk’s role in the controversy
Billionaire Elon Musk, a key adviser in Trump’s administration, has been vocal against USAID, using social media to accuse the agency of corruption.
“Did you know that USAID, using YOUR tax dollars, funded bioweapon research, including COVID-19, that killed millions of people?” Musk is quoted in one post, citing an article on the origins of the pandemic.
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He also called the agency a “radical left political psyop,” alleging it has been paying media outlets to spread propaganda.
On Monday night, Musk said he had spoken with Trump, who agreed, “We would shut it down.”
Political backlash and legal hurdles
US Secretary of State Marco Rubio also accused USAID’s leadership of “insubordination” and declared himself as its “acting head”.
He said some of its functions would continue but that funding must “align with national interests.”
USAID’s website has been largely wiped, leaving only an administrative leave notice for employees.
Democrats have condemned Trump’s move, calling it illegal and a threat to national security. They argue the president lacks constitutional authority to unilaterally dismantle the agency.
African countries will be the hardest hit by the funding freeze, with hundreds of USAID-funded programs shutting down and employees being laid off or placed on unpaid leave.
