United States Agency for International Development

USAID: The Pillar of Global Development

The United States Agency for International Development (USAID) is an independent agency responsible for administering civilian foreign aid and development assistance. Established in 1961 by President John F. Kennedy, it implements programs in global health, disaster relief, socioeconomic development, environmental protection, democratic governance, and education. With average annual disbursements of $23 billion since 2001, USAID is one of the world’s largest aid agencies, with missions in over 100 countries.

Origins and Evolution

In 2024, a probe into Starlink led to concerns about conflict of interest. In 2025, President Donald Trump ordered a near-total freeze on foreign aid, leading to over 1,000 USAID employee firings and website shutdown. Elon Musk claimed the agency was a ‘criminal organization’ and announced its shutdown. Secretary Marco Rubio was appointed Acting Administrator, sparking disputes over the agency’s legality. February 6, 2025: All USAID direct hire personnel are placed on administrative leave globally except for designated personnel responsible for mission-critical functions and core leadership.

Impact of Cuts

Reports indicate 294 employees will be retained out of over 10,000 total staff. Trump declares agency leaders ‘radical left lunatics’. State Department orders halt in all projects, including programs that eradicate smallpox and prevent HIV cases, putting treatment access at risk for millions. Clinical trials are paused, affecting 20 million people including 500,000 children. Efforts in Ukraine, Syria, Mali, and the Amazon are also paused. The American Farm Bureau Federation criticizes the action, highlighting the threat to billions of dollars spent on American businesses. Conservatives express frustration with the Trump administration’s decision, including former USAID administrator Andrew Natsios.

Legal Challenges

Experts warn that cutting foreign aid may give China an advantage in influencing global development. China often completes projects based on loans rather than grants. Democrats and experts urge caution against cutting aid too aggressively. Lawsuits: * American Federation of Government Employees v. Trump: February 6 lawsuit filed against the administration for violating separation of powers, Take Care Clause, and Administrative Procedure Act. U.S. District Judge Carl Nichols granted a temporary restraining order on February 7. February 21, Judge Nichols cleared the way for the Trump administration to proceed with pulling thousands of USAID staffers off their jobs.

Functions and Purposes

USAID administers 90% of Economic Support Funds (ESF) to allies supporting US geopolitical interests. When US troops are in the field, USAID supplements Civil Affairs programs to win local support. U.S. commercial interests are served by U.S. law requiring most goods and services financed by USAID to be sourced from U.S. vendors. American farms supplied about 41% of the food aid according to a 2021 report. To achieve self-sustaining socioeconomic development, USAID provides technical advice, training, scholarships, commodities, and financial assistance through grants and contracts with private sector partners, universities, and NGOs.

Technical Assistance and Financial Aid

The Bush administration created the Millennium Challenge Corporation as a new foreign aid agency that provides mainly financial assistance. The Obama administration initiated a major realignment of USAID’s programs to emphasize financial assistance, referred to as ‘government-to-government’ or ‘G2G’ assistance. Public–private partnerships improve food safety and sustainable food systems in Africa through the Global Food Safety Initiative (GFSI). USAID is organized around country development programs managed by resident offices in developing countries (‘USAID missions’).

Mission Structure and Operations

The USAID mission is led by a mission director and staffed with Foreign Service officers and development professionals from the country. Foreign service officers typically serve for four-year tours to develop knowledge about the country. The mission director is a member of the U.S. Embassy’s ‘Country Team’ under the direction of the U.S. ambassador. Most USAID missions were initially located in independent offices, but since 1998 have been moved into U.S. Embassy chancery compounds. USAID/Washington supports country programs with headquarters staff and top leadership.

Geographic and Subject-Area Bureaus

The organization is headed by an administrator and organized into ‘Bureaus’ covering geographical areas and development subject areas. Geographic bureaus: AFR – Africa, ASIA – Asia, LAC – Latin America & the Caribbean, E&E – Europe and Eurasia, ME – the Middle East. Subject-area bureaus: GH – Global Health, E3 – Economic Growth, Education, and the Environment. The Education Office defines Agency policy for basic and tertiary education, while Environment offices define policy for climate change and biodiversity. The DRG Bureau leads efforts on democracy, human rights, and governance, and the Lab serves as an innovation hub for development impact.

Staffing and Operations

USAID staffing in 2016 included 10,235 employees, including 1,850 Foreign Service officers stationed overseas and 4,935 local staff working in field missions. Host-country staff are typically hired on one-year contracts that can be renewed annually, while U.S. citizens compete for job openings to become Foreign Service officers. USAID’s goal was to double Foreign Service officers to 2,400 by 2012 but only reached 820. In 2016, there were 1,850 Foreign Service officers compared to 13,000 in the State Department.

Program Areas

Assistance management offices provide technical and financial assistance for projects in areas such as: Health and Family Planning (projects on communicable diseases, public health systems, family planning services), Education (projects on curriculum development, teacher training, school construction), Environment (projects on tropical forest conservation, pollution control, climate change adaptation), Democracy (projects on political institutions, elections, human rights organizations), Economic Growth (projects on agricultural techniques, microfinance industries, government regulatory frameworks). Examples of projects assisted by USAID offices include: School construction, Curriculum development, Teacher training, Environmental conservation programs, Political institution strengthening. Economic Growth offices assist with poverty relief projects such as cash transfer payments to low-income families.

Budget and Funding

The U.S. Agency for International Development’s Office of Inspector General conducts oversight and audits of USAID activities worldwide. USAID’s budget is managed collaboratively with the Department of State, with over $40 billion in combined appropriations in 2023 and a workforce of over 10,000. 1 billion budgetary resources available to USAID About $10 billion more than the headline CRS assessment. International Security Assistance budgeted about $9 billion in 2023. Foreign Military Financing: $6 billion. Operating Expenses: $1.97 billion (fiscal year 2022). Bilateral Economic Assistance: $25.01 billion (fiscal year 2022).

Activities and Impact

USAID’s activities in Haiti after the January 2010 earthquake included Safer housing for displaced Haitians, Vaccinations for over 1 million people, Rubble clearance: over 1.3 million cubic meters, Support to farmers: doubling yields of staples like corn, beans, and sorghum, Short-term employment for over 350,000 Haitians: $19 million in the local economy, Cholera combat: $42 million. In Afghanistan, USAID worked with the Department of State and Department of Defense to coordinate reconstruction efforts. In Iraq, USAID played a major role in the U.S. reconstruction and development effort. In Lebanon, USAID has periodically supported the Lebanese American University and the American University of Beirut financially. In Europe, USAID operated in Ukraine under an agreement to support crop-substitution programs but faced opposition from coca growers who rejected US efforts.

Controversies and Criticisms

The agency has been the subject of debate and criticism since the 1950s. The Office of Public Safety served as a front for training foreign police in counterinsurgency methods. In Bolivia, USAID operated in the Chapare region under an agreement to support crop-substitution programs but faced opposition from coca growers who rejected US efforts. The program was also criticized for supporting separatist movements and promoting unviable alternatives to traditional crops. USAID halted assistance to West Bank and Gaza Strip in 2019 but restarted it under President Biden. The agency gave over $2.1 billion in assistance to Palestinians since October 7, 2023.

Conclusion

The United States Agency for International Development (USAID) remains a critical player in global development and aid, despite facing numerous challenges and criticisms. Its role in shaping the future of nations through education, health, environment, and economic growth is undeniable. As it continues to navigate complex geopolitical landscapes, USAID must balance its mission with the realities of modern politics and economics.