Reuters: Trump administration proposes foreign aid reform, including USAID
USAID office (Illustrative photo: Shawn Thew/EPA)
The administration of U.S. President Donald Trump has formulated a proposal to reassess the framework governing the allocation of billions of dollars in foreign assistance, according to a relevant memorandum cited by Reuters.
This document advocates for financing a reduced number of sectors that, in the view of the proposal’s authors, align more closely with U.S. geopolitical objectives.
The proposal, reviewed by Reuters, emerges amid initiatives by Trump and billionaire Elon Musk to downsize the federal government, which they assert is misappropriating taxpayer funds for activities that do not advance U.S. interests.
The article mentions that Trump mandated a 90-day halt to all U.S. foreign aid on his first day in office. The directives from the American president have resulted in the suspension of numerous U.S. Agency for International Development (USAID) programs globally, threatening the provision of essential food and medical assistance.
USAID itself has experienced significant reductions, with a majority of its personnel furloughed or terminated, and over 80% of its grants being discontinued.
The memorandum contends that the existing framework of U.S. foreign assistance is excessively broad, overly costly, and has not succeeded in diminishing certain nations’ reliance on American aid. It emphasizes that funding should be directed with a more concentrated strategic aim.
“This initiative proposes a redefined structure for U.S. international aid and a set of operational principles that promise tangible benefits for America while enhancing American soft power, bolstering our national security, and countering international rivals, including China,” the document states.
As reported by a Reuters source familiar with the document, it is intended to be forwarded to U.S. Secretary of State Marco Rubio for evaluation.
While it remains uncertain which aspects of the proposal will be enacted, it represents one of the most comprehensive assessments to date of how the Trump administration plans to reform USAID, an agency established in 1961 by the 35th U.S. President, John F. Kennedy.
Among other recommendations, the memorandum suggests the elimination of nearly two dozen USAID offices and proposes renaming it the United States Agency for International Humanitarian Assistance.
The restructured agency will become part of the State Department, with its mission confined to humanitarian aid, disaster response, global health, and food security.
Additionally, it is suggested that any “politically focused programs,” such as those aimed at promoting democracy, religious freedom, and women’s empowerment, be overseen directly by the State Department.
“We aim to achieve President Trump’s and Secretary Rubio’s foreign policy objectives by being as innovative, agile, and focused as possible,” the State Department stated in response to inquiries regarding the memorandum.
- On January 21, 2025, Trump ordered a 90-day suspension of all U.S. foreign aid.
- On February 27, the Trump administration revealed that it was terminating over 90% of USAID grants associated with foreign assistance.
- On March 5, the U.S. Supreme Court rejected Trump’s request to halt USAID foreign aid.
- On March 10, the U.S. State Department announced the cancellation of 83% of USAID programs.
