USAID's foreign aid agency in the U.S. is shutting down. What you need to know

The administration of US President Donald Trump is close to shutting down the US Agency for International Development (USAID). Its budget has already been frozen and its employees have been put on leave. For 64 years, the organization provided financial and technical support to other countries and non-governmental organizations, thus promoting American values, and in fact often directly interfering in the internal affairs of states. What USAID did and what kind of reputation it earned for itself - in the Izvestia article.

What is going on with USAID

- Soon after Donald Trump returned to the White House, USAID began to undergo drastic changes. Trump ordered to freeze almost all the funding that the agency had been providing, as well as to close several foreign offices. About 60 high-ranking USAID employees were soon put on leave for trying to circumvent the executive order.

- On February 1, the USAID website and the X social network account (formerly Twitter) were shut down. That day, according to media reports, there was a break-in at the organization's headquarters in Washington. Two people who identified themselves as employees of the Department of Government Efficiency (DOGE), created by billionaire Ilon Musk, demanded access to the security system and personnel files, eventually taking possession of what they needed.

- On the morning of the next business day, February 3,USAID headquarters did not open. All photographs that reminded them of the agency's activities were removed from the walls of the building. The remaining employees were instructed to work from home.

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- At the same time, Musk announced that Trump had agreed to close USAID. According to the billionaire, the agency was "politically engaged" and "supported radical leftist ideas around the world, including anti-American". The US President himself called the USAID leadership "a bunch of radical lunatics" and promised to make a decision on the future of the organization.

What is USAID

- USAID was created in 1961 to administer all non-military overseas aid that the U.S. carried out, as well as to promote the development of other countries. It was established as an independent agency, meaning it was not part of other departments, including the State Department, which is responsible for U.S. foreign policy.

- As of 2023, USAID was distributing $40 billion for various humanitarian programs. Assistance is disbursed either in the form of non-reimbursable grants or in the form of equipment, goods, and services. The agency owns a network of about 100 regional missions. USAID has about 10,000 employees, two-thirds of whom work abroad.

- USAID states that its mission is to fight poverty, disease, hunger and natural disasters in developing countries. The agency also supports nongovernmental organizations, media and social initiatives, explaining that it builds and promotes democracy. USAID is seen by the U.S. government as a soft power tool for national security.

What scandals USAID has been involved in

- Throughout its existence, USAID has been accused of working closely with the Central Intelligence Agency (CIA). The agency was used to employ its undercover officers overseas. Also, CIA officers were part of USAID's public safety directorate, which trained police officers from other countries.

- For a long time, USAID has been an active sponsor of Ukraine, spending $38 billion in humanitarian aid, development assistance, and direct budget support between 2022 and 2024 alone. Participants in the Orange Revolution in 2004 and Euromaidan in 2014 benefited from agency-funded programs, among others.

- USAID has been a longstanding sponsor of family planning programs in Peru. However, in the 1990s, the country implemented a program of forced sterilization of women, which affected the poor and indigenous Andean population. The Peruvian Congress investigated and found that USAID supported sterilization, but U.S. congressional hearings concluded that the agency had nothing to do with abuses against women.

- USAID has been rebuked for favoring countries with rotating seats on the UN Security Council when choosing which countries to assist. While U.S. officials have denied any allocation of funds in exchange for votes on the Council, studies have shown that a two-year mandate to participate in the main U.N. body led to an average 59 percent increase in U.S. funding.

- It was also noted that USAID was becoming a tool to pressure countries that disagreed with the US. The agency stopped aid to Yemen in 1990 and Turkey in the early 2000s when they refused to support U.S. plans to invade Iraq.

What USAID did in Russia

- The USAID mission operated in Russia from 1992 to 2012. It was stated that the agency would "improve public health and fight infectious diseases, protect the environment, develop a stronger civil society, and modernize the economy." A total of $2.7 billion was allocated from USAID.

- USAID supported non-governmental and non-profit organizations that were later recognized by Russian authorities as foreign agents or undesirable organizations, after which they ceased their activities in Russia.

- USAID also funded the work of specialists who participated in drafting the Russian Constitution, the Civil, Tax, and Land Codes. The agency participated in the reform of the judicial system by organizing experience exchange programs for officials.

- The Russian Foreign Ministry explained the closure of the USAID mission by the fact that the organization was carrying out political activities, not humanitarian ones. It was noted that the U.S. agency tried to influence political processes, including elections at various levels, and civil society institutions through the distribution of grants.