USAID Shutdown: Impact on Global Aid and Millions at Risk

Web Editor

July 1, 2025

a sign with the words usaid on it in front of a flag of the united states of america, Afewerk Tekle,

Background on USAID

The United States Agency for International Development (USAID) was established in 1961 during the Cold War era by President John F. Kennedy, aiming to attract developing nations towards the democratic Western world through aid.

USAID’s Achievements

  • Under the leadership of former President George W. Bush, USAID’s President’s Emergency Plan for AIDS Relief (PEPFAR) made significant strides in combating HIV/AIDS.
  • Former President Barack Obama acknowledged the importance of USAID, stating that its termination would be a “colossal mistake.”

Restructuring under Marco Rubio

Marco Rubio, the current head of U.S. diplomacy, has drastically reshaped USAID by cutting 85% of its projects and integrating them into the Department of State.

Rubio views USAID as an outdated “charity model,” criticizing its global reach at taxpayers’ expense and the alignment of some recipient countries with China instead of voting with the U.S. in the UN.

The Lancet Study and Counterarguments

A study published in The Lancet medical journal predicts that over 14 million additional deaths could occur by 2030 due to reduced foreign aid, with a third being young children. However, an anonymous State Department official dismissed the study’s assumptions and asserted that the U.S. would continue providing aid, albeit more efficiently.

The official mentioned that PEPFAR would remain focused on preventing mother-to-child HIV transmission, despite no longer funding the preventive medication PrEP for gay men in Africa.

Impact on Global Emergencies

Bob Kitchen, Vice President of Emergencies at the International Rescue Committee, corroborates The Lancet’s prediction. He highlights that USAID-funded programs have left nearly 400,000 Sudanese refugees without urgent assistance and over 500,000 Afghans, mostly women and children, without access to education and healthcare.

European Union countries and the UK, instead of filling the gap, have increased military spending. Kitchen warns that these cuts will not only exacerbate immediate crises but also weaken stable nations like Ethiopia and Kenya.

Beyond moral considerations, Kitchen emphasizes that these reductions will intensify migration—a matter Trump aims to curtail.

Key Questions and Answers

  • Q: What is USAID? A: The United States Agency for International Development, established in 1961, aims to end extreme poverty and promote open, prosperous societies.
  • Q: Why is the shutdown of USAID concerning? A: The shutdown could lead to millions of preventable deaths, as per a study in The Lancet medical journal.
  • Q: How has Marco Rubio restructured USAID? A: Rubio has cut 85% of USAID projects and integrated them into the Department of State, viewing it as an outdated charity model.
  • Q: What are the potential consequences of these cuts? A: The cuts could exacerbate immediate crises, weaken stable nations, and intensify global migration.