Trump Is Cutting USAID Budgets. Implications for What Lies Ahead.
Trump’s decision to reduce foreign aid could have more significant repercussions than he anticipates.

The political consequences of dismantling USAID remain uncertain, but the immediate effects of halting foreign aid and disrupting established programs are becoming evident for the Trump administration.
What implications does this have for the U.S. and the globe? Here are some insights:
1. **What role does USAID play in global stability?**
The U.S. Agency for International Development oversees more than $40 billion annually in foreign assistance and operates in over 120 countries. Its funding addresses various issues, ranging from supporting refugees from nations like Ukraine to enhancing educational systems and promoting governance worldwide. A significant portion of U.S. foreign assistance is dedicated to global health initiatives, which include everything from providing mosquito nets to combat malaria, to vaccinations against measles and polio, and efforts to control the rise of AIDS in African countries.
The loss of this funding could lead to increased vulnerability to starvation, disease, and extremist ideologies among affected populations. A decline in educational services may push young individuals toward activities that might lead to crime.
Widespread suffering is already occurring due to the U.S. freezing its assistance. The State Department announced it had issued waivers for what it deemed essential life-saving resources, like food and medicine, but the criteria for these waivers lack clarity, leaving many organizations unsure of their eligibility. Furthermore, technical issues with the payment system and the majority of USAID's staff being put on leave have made it nearly impossible for many groups to obtain waiver approval or get funds flowing.
2. **How does a weakened USAID affect the United States?**
A considerable portion of U.S. foreign assistance is, in fact, spent domestically. The government procures vast amounts of grains and other food products from American farmers, which are then shipped abroad to support people in need.
The ongoing freeze on foreign aid means that these food supplies are being unused and many farmers are not receiving the payments they were promised. We are looking at hundreds of millions, potentially billions, of dollars lost over time. Additionally, healthcare companies such as Pfizer and Abbott rely on USAID funding to supply medicines and materials globally. Disrupted contracts could negatively impact these companies and, by extension, the U.S. economy.
3. **How could job cuts affect the aid network?**
Many employees at USAID are essential to its operations. They serve as vital links to ensure funding is distributed efficiently and correctly. With most of these staff members now on leave or let go, the operational capability of the aid network has been severely compromised.
This situation resembles removing the core of a vital system. The cuts to USAID also impact related sectors, as many organizations that collaborate with USAID have had to reduce their own workforce. Consequently, this ripple effect could result in the loss of tens of thousands of jobs across the board.
4. **How does USAID’s contributions compare to that of other countries?**
In the absence of U.S. assistance, other nations, international bodies, and NGOs will need to seek alternative funding sources or devise new ways to coordinate efforts without U.S. support.
This presents challenges, likened to having a body without a spine. Other countries, like Norway, are significant donors, but there are growing concerns that China might exploit the situation to step in as a leading aid provider. This prospect worries many U.S. foreign policy analysts, who fear it could bolster China's influence on the global stage.
5. **What happens when the U.S. abandons its role as the leader in global aid?**
The prevailing concern is that the withdrawal of U.S. assistance may lead formerly stable regions to become increasingly volatile. Diseases that were previously contained could resurface, and during natural disasters, the lack of resources would hinder relief efforts for affected communities.
The overarching challenge lies in the fact that if the U.S. creates a vacuum and later tries to reclaim its role, it will face an arduous task to restore these networks. The destruction of such frameworks is swift, but rebuilding them takes considerable time, during which lives hang in the balance.
Olivia Brown for TROIB News