What Is USAID? What It Does, Who It Helps, And Why Donald Trump Wants To Close It - Explained

(MENAFN- Live Mint) The Trump administration's proposal to merge the United States Agency for International Development (USAID) into the State Department has raised questions about the future of billions of dollars in humanitarian and development assistance to some of the world's most impoverished nations. USAID, the largest provider of official development assistance globally, has a budget of tens of billions of dollars and operates in over 130 countries, funding programs that address issues from health and governance to food security and education.

What is USAID?

USAID , established by Congress in 1961, serves as the primary humanitarian and development arm of the US government. With a workforce of approximately 10,000 employees worldwide, the agency works closely with Congress and the White House to determine funding priorities, which are approved annually by Congress. USAID 's mission is to provide financial support through grants, contracts, and cooperative agreements to countries in need, especially low- and lower-middle-income nations. In the 2023 fiscal year, USAID managed more than $40 billion in combined appropriations.

Top recipients of aid

USAID provides support to approximately 130 countries. The top three recipients in 2023 were Ukraine, Ethiopia, and Jordan, with Ukraine receiving over $16 billion in macroeconomic support amid the ongoing war. Other notable recipients include Ethiopia, the Democratic Republic of Congo, Afghanistan, South Sudan, and Syria.

USAID's funding focus

In 2023, USAID allocated around $17 billion to governance-related issues, primarily aimed at supporting Ukraine. Additionally, nearly $10.5 billion was directed toward humanitarian efforts, $7 billion went to health programs, and $1.3 billion was used for agricultural development. Some countries also received direct budgetary support, such as Jordan, which received over $770 million in cash transfers.

Trump Administration moves to shutter USAIDStaffers ordered to stay out of USAID Headquarters

Staff members of the US Agency for International Development (USAID) were instructed to stay out of the agency's Washington headquarters after billionaire Elon Musk , appointed by President Donald Trump to oversee the government's overhaul, announced the agency's shutdown. Musk's Department of Government Efficiency (DOGE) has been granted significant authority to investigate federal agencies, and the decision to close USAID has sparked outrage.

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