USAID has been central to U.S. foreign policy for decades, serving as a key tool for diplomacy and soft power. Established in 1961, it has provided humanitarian aid, promoted democracy, and fostered economic growth. By stabilizing fragile states and strengthening alliances, USAID has helped shape global perceptions of the U.S. as a benevolent power. Its projects range from disaster relief in Asia to education programs in Africa, reinforcing goodwill in regions where traditional diplomacy may not suffice.
However, President Trump’s closure of USAID raises concerns about U.S. influence. Would its dismantling weaken America’s global soft power? As the world knows, global competition intensifies, and withdrawing from aid efforts could have lasting repercussions for vulnerable populations and the U.S.’s standing on the world stage. Hence, the pros and cons of this action need to be discussed more robustly.
What is USAID?
Established in 1961, USAID is an independent federal agency delivering civilian aid worldwide. It promotes stability, democracy, and economic growth while working closely with the U.S. State Department and other government entities to align foreign aid with national security objectives.
The agency aims to reduce poverty and support democratic societies that contribute to global security. Key focus areas include economic development, governance, health, food security, environmental sustainability, education, and disaster relief. By enhancing economic opportunities, strengthening institutions, and providing emergency aid, USAID has been instrumental in fostering international development.
Although independent, USAID is integrated into U.S. foreign policy. Its leadership is appointed by the President and confirmed by the Senate, ensuring alignment with national priorities. In FY2022, it managed over $40 billion in aid, primarily funded by the State Department and congressional appropriations, solidifying its role as a major global development player.
Global Impact of USAID
USAID operates in over 100 countries, addressing global development challenges through partnerships with governments, NGOs, and private organizations. Its work extends beyond immediate relief to long-term solutions that promote economic stability, democracy, and public health.
The agency plays a critical role in humanitarian aid, responding to natural disasters and conflicts. In 2010, USAID provided over $1 billion in relief following the Haiti earthquake. It also fosters economic growth by supporting small businesses, modernizing agriculture, and improving financial access. Other than that, an initiative called Feed the Future has lifted millions from poverty by enhancing agricultural productivity and market access.
Furthermore, USAID’s health programs have also saved lives worldwide, including through the President’s Emergency Plan for AIDS Relief (PEPFAR), which has provided HIV/AIDS treatment to millions. The agency also combats diseases like malaria and tuberculosis through vaccination efforts. Additionally, it promotes democratic governance by supporting anti-corruption measures, election monitoring, and independent media, as seen in Ukraine.
The agency’s impact is evident in various case studies, such as its efforts during the Ebola outbreak in West Africa and the Power Africa initiative, which has improved access to clean water and renewable energy. USAID strengthens U.S. global influence through strategic development assistance by reducing the need for military intervention. As geopolitical competition rises, its role remains vital to sustaining America’s soft power.
USAID as the “Tools of Statecraft”
Foreign aid is a key tool for global influence without military force. USAID, the U.S.’s primary development agency, uses soft power to build alliances, promote democracy, and counter strategic rivals. Unlike military interventions or sanctions, USAID strengthens U.S. influence through humanitarian aid, economic partnerships, and institutional development. By fostering goodwill, the agency helps secure diplomatic relationships, promotes political and economic models favorable to U.S. interests, and mitigates instability.
USAID directs aid to strategically important nations, strengthening alliances and fostering economic growth. Its investments in regions like Southeast Asia and Latin America have bolstered U.S. diplomatic ties. In NATO-allied countries, USAID supports democratic governance and economic resilience. Additionally, the agency tackles terrorism and instability by addressing poverty, corruption, and weak institutions. Programs focused on youth employment and governance in the Middle East and North Africa help prevent radicalization and promote stability.
USAID also exports American values, including democracy, human rights, and free markets. It has supported anti-corruption, fair elections, and civil society development in post-Soviet states like Ukraine and Georgia, reinforcing their alignment with the West. As global power struggles intensify, USAID counterbalances China’s Belt and Road Initiative, offering a development model based on transparency, private sector growth, and governance reforms. USAID ensures countries remain open to U.S. partnerships in Africa, Southeast Asia, and Latin America instead of shifting toward Chinese influence.
Beyond humanitarian work, USAID is a strategic instrument of U.S. foreign policy, shaping global dynamics in America’s favor. Through economic and governance support, the agency fortifies alliances, prevents instability, and counteracts adversarial influence. As global competition escalates, USAID remains crucial in maintaining U.S. leadership and ensuring America’s soft power continues to shape world affairs.
Trump’s Closure of USAID
The Trump administration’s “America First” policy led to the dismantling of USAID, reflecting skepticism toward foreign aid, which Trump deemed wasteful and misaligned with U.S. interests. This marked a major shift in foreign policy, affecting global development and diplomacy.
Trump prioritized domestic spending and military strength over soft power. His administration initiated steps to freeze and eventually dissolve USAID, considering merging it with the State Department. Elon Musk, heading the Department of Government Efficiency (DOGE), evaluated and recommended the downsizing.
The administration justified this move as cost-cutting, arguing that foreign aid funds should be redirected to domestic projects. Critics labeled USAID as bureaucratic and inefficient, citing alleged corruption and mismanagement. The State Department claimed much of its funding had minimal impact on U.S. security or economic interests.
The closure had immediate effects: thousands of employees lost jobs, field offices shut down, and aid shipments stopped, disrupting relief for millions. Allies and international organizations condemned the move, fearing a power vacuum that rivals like China and Russia could exploit. Countries dependent on U.S. aid scrambled for alternatives, turning to China’s Belt and Road Initiative (BRI) and Russian-backed programs.
The U.S. After USAID
The closure of USAID raises concerns about sustaining U.S. global influence. Without it, the U.S. risks losing ground to rivals like China and Russia, who are expanding foreign aid efforts. To adapt, the U.S. must explore alternative diplomatic and development strategies.
Public-private partnerships could help fill the gap, leveraging major NGOs and corporations like the Bill & Melinda Gates Foundation and Google.org. These organizations have the expertise to drive global development in areas like health, education, and technology. With increased U.S. financial support and diplomatic engagement, international institutions such as the UN, World Bank, and IMF can also take on greater development responsibilities.
Another option is military-led humanitarian aid, though it risks appearing as interventionism. The Department of Defense has supported disaster relief efforts, but relying too heavily on the military for aid may weaken U.S. soft power credibility.
Looking ahead, the U.S. must strategically adapt. It can either maintain its influence through innovative partnerships and multilateral cooperation or see its soft power diminish. The outcome will shape America’s global standing for years to come.
What to Overlook
USAID played a crucial role in U.S. foreign policy, using soft power to promote global development, democracy, and diplomacy. Its closure marks a significant shift, raising concerns about reduced influence as China and Russia expand their aid programs. Without USAID, the U.S. risks losing key alliances and strategic footholds, potentially weakening its global standing.
While public-private partnerships and multilateral engagement offer alternatives, they lack USAID’s scale and impact. The U.S. must swiftly adapt to preserve its influence. Whether this marks a decline or a strategic shift depends on how policymakers navigate this transition. One thing is clear: soft power remains vital, and the U.S. must innovate to maintain its leadership.
Henceforth, Trump’s administration needs to consider what are the costs and benefits of closing USAID. It would not be impossible for this decision to lead to a boomerang effect on the United States. That is why the decision to close USAID perhaps is not the appropriate decision for the U.S.
