The Trump administration has prepared a proposal to reform the structure of how Washington distributes billions of dollars in foreign aid.
This is reported by Reuters, whose journalists have reviewed the relevant memorandum.
The document argues that the current structure of the US foreign aid is too broad, too expensive, and has failed to reduce some countries’ dependence on American aid. It proposes that funding be allocated with a narrower strategic focus.
“This project proposes a reimagined structure for the US international assistance and a set of operating principles that promise measurable returns for America while projecting American soft power, strengthening our national security, and countering global competitors, including China,” the document says.
According to the source, this internal memorandum will be sent to the US Secretary of State Marco Rubio for consideration.
It is unclear whether the proposal will be adopted, but it is one of the most detailed studies yet of how the Trump administration plans to transform USAID. The proposal would eliminate nearly two dozen USAID offices and rename the organization the United States Agency for International Humanitarian Assistance.
The new “specialized” body will be part of the State Department, and its mandate will be limited to the areas of humanitarian assistance, disaster response, global health, and food security.
The document also proposes to place any “politically oriented programs”, such as promoting democracy, religious freedom, and women’s empowerment, under the direct management of the State Department.
Whatʼs happening with USAID?
USAID is the worldʼs largest donor. In fiscal year 2023, the United States provided $72 billion in assistance worldwide. The agency was founded in 1961 under President John F. Kennedy. It provides billions of dollars each year to end poverty, treat disease, and respond to famine and natural disasters, as well as to build and develop democracy by supporting non-governmental organizations, independent media, and social initiatives.
On January 20, inauguration day, the US President Donald Trump froze USAID initiatives for 90 days. After that, the Agencyʼs employees began to be placed on administrative leave without pay.
Trumpʼs executive order stated that the United Statesʼ foreign aid policies were not in line with American interests and in many cases contradicted American values.
After Trump came to power, the Department of Government Efficiency (DOGE) was created. Its goal is to optimize the work of federal agencies and reduce government spending. It was headed by billionaire Tesla and SpaceX owner Elon Musk.
Elon Musk and DOGE shut down the USAID website and headquarters, furloughed thousands of employees, and spread fake news about the agency, including that it funded the creation of biological weapons and was a front for the CIA.
On March 10, US Secretary of State Marco Rubio reported that the US was officially closing 83% of USAID programs. He explained this by saying that these programs were spending "tens of billions of dollars" and that it was allegedly not beneficial and was harming the States.
On March 18, a US court ruled that Elon Musk and his DOGE likely used unconstitutional powers in the liquidation of USAID.
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