In the most recent fiscal year, America spent around $72 billion in foreign aid, the highest by far of any country – and over 60% of this was delivered through the US Agency for International Development (or USAID as its known around the world). But that may drastically change soon if Elon Musk has his way.
As many of us may have seen over the past couple of weeks, the incoming Trump administration has gone in a big way after the US Agency for International Development, or USAID as it is known all over the world.
Considered by most US administrations, and many Republican lawmakers as well (including the current Secretary of State Marco Rubio – when he was a Senator), as a key part of America’s foreign policy and an essential tool of its ‘soft’ power, it is surreal to see Elon Musk and his (already controversial) Department of Government Efficiency go after USAID. Reports in the US media suggest that if Elon has his way, USAID would be shut down completely with only a small fraction of its staff retained and shifted to other departments.
To justify the purge, so to speak, USAID has been cited as a major reservoir of waste of US taxpayer's money. The US far right, which seems to be rallying around Elon Musk, has always had an insular view and one that sees America not spending anything on the rest of the world unless absolutely necessary for its interests and which completely fails to see the value in US taxpayers funds supporting free media in foreign countries, or building much-needed clinics, hospitals, schools, roads, etc.
Of course, if USAID were to actually be shut down permanently, it would leave space for other Western powers to step in and try and fill the gap and make greater use of the ‘soft’ power that comes with giving aid to foreign countries for much-needed projects. While a federal US judge has temporarily blocked the plan to lay off USAID staff, the matter is far from settled, and USAID employees plan to sue the US government to stop it from shutting down the agency.
USAID’s projects are helping those who are from low-income backgrounds increase the quality of their lives and many are imparting Pakistanis with the skills that will help them acquire a decent livelihood
That said, as things stand currently, projects funded by the agency around the world have been on hold since Trump took office and passed an executive order freezing all foreign aid given by the US. And there are dozens of these in Pakistan where USAID funds all kinds of projects and schemes from the National Rural Support Programme which helps people in the country’s rural areas fight poverty, to helping train university and school teachers, to helping improve the country’s ability to deal with disasters, and so on.
In 2024, USAID had budgeted $116.5 million for Pakistan and this included $21.53 million for basic health, $14 million for disaster prevention and preparedness, $12 million for energy, $6 million for civil society organisations, and $4.8 million for agriculture. In other words, most of USAID’s projects are helping those who are from low-income backgrounds increase the quality of their lives and many are imparting Pakistanis with the skills that will help them acquire a decent livelihood.
With all funding on hold, all ongoing projects are currently suspended and there is no indication when they will resume, if at all. For instance, an ongoing countrywide training initiative for university teachers with collaboration from other universities in Asia has come to an abrupt stop, while a civil society organisation based in Karachi that provides under-trial prisoners who cannot afford a lawyer with legal aid has stopped operations. There are dozens of other examples in Pakistan and in many instances, those who will suffer the most will be those most in need.
One can only hope that the US courts step in and permanently stop these efforts by Elon Musk and his friends because they run counter to America’s foreign policy interests, where ‘soft’ power is increasingly being used as an effective supplement to a country’s military and economic muscle.