The future of US foreign aid is facing uncertainty as the Trump administration has terminated over 90% of the US Agency for International Development (USAID)'s foreign assistance awards. This move follows the administration's efforts to dismantle USAID, leading to layoffs of approximately 2,000 employees and putting the majority of remaining staff on leave. The agency's global aid efforts had already stalled due to a freeze on existing and future foreign assistance, causing widespread confusion and impacting humanitarian organizations.
Secretary of State Marco Rubio's memo in January directed a suspension of foreign aid programs for 90 days, resulting in the termination of around 5,800 USAID awards and 4,100 State Department awards. USAID, which manages 61% of the more than $71 billion in US foreign aid spent in 2023, plays a crucial role in delivering aid worldwide.
The termination of USAID awards could significantly affect US aid to Ukraine, the largest recipient of USAID funds since Russia's invasion in 2022. USAID has provided Ukraine with $37.6 billion in aid, with a focus on governance funding to support institution building and stability amid the conflict.
Over the past decade, Africa has received the largest share of USAID spending, primarily for health and humanitarian assistance. The United States is a major donor to the Global Fund to Fight AIDS, Tuberculosis, and Malaria, supporting initiatives like the President's Emergency Plan for AIDS Relief (PEPFAR).
PEPFAR has saved millions of lives from HIV/AIDS and contributed to preventing mother-to-child transmission. Despite waivers issued for PEPFAR, the suspension of USAID and foreign aid freeze has impacted aid workers globally, leading to job terminations and challenges in providing medical assistance in refugee camps and conflict zones.
