The United States Agency for International Development (USAID) has long been a cornerstone of American foreign policy since its establishment in 1961 under President John F. Kennedy. It was a key component of his strategy to expand U.S. global influence through economic and development aid. However, in stark contrast to its founding purpose, USAID witnessed a significant decline over the decades, culminating with its suspension during President Donald Trump’s second term.

What Were the Implications of Its Establishment and Suspension?

During the Cold War, as the U.S. and the Soviet Union vied for global influence, Washington sought to extend its reach through soft diplomacy—offering economic, health, educational, and cultural assistance rather than resorting to direct military intervention. USAID became a central pillar of this approach, with objectives that included:

- Promoting economic and social development in emerging nations

- Supporting political stability and curbing the spread of communism

- Providing humanitarian aid in times of crises and natural disasters

- Strengthening governance and helping nations build sustainable economies

Since its inception, USAID played a crucial role in global politics, particularly in countering Soviet influence by funding development projects and supporting health, education, and infrastructure programs across Africa, Asia, and Latin America. These initiatives not only bolstered relations with new U.S. allies but also positioned the agency as a key player in international diplomacy.

Controversy and Criticism

Despite its global impact, USAID has faced persistent criticism, especially from the Soviet Union and its allies, who viewed it as an instrument of U.S. political intervention. Critics argued that American aid was strategically deployed to exert political leverage over recipient nations while securing access to their natural resources—particularly in Africa—under the guise of development assistance.

As conservative political currents gained traction in the U.S., particularly under President George W. Bush (2001–2009), USAID’s budget faced gradual cuts. The trend continued under President Barack Obama, who scaled back military aid in line with his liberal foreign policy. However, it was Trump’s second term in 2025 that marked a turning point. His administration’s “America First” doctrine ushered in a new approach, prioritizing domestic spending and reducing foreign aid. The key reasons behind USAID’s suspension included:

Cutting foreign aid to reduce U.S. involvement in global affairs

Redirecting funds toward domestic priorities

- A belief within the Trump administration that USAID’s programs lacked economic and political effectiveness

- A push to streamline government bureaucracy and reduce federal agencies

- A Shift in Global Power Dynamics

The suspension of USAID funding had profound consequences, particularly for infrastructure and development projects in struggling economies. Diplomatically, the move weakened U.S. ties with traditional partners, creating a vacuum that China and Russia quickly sought to fill by expanding their own global assistance programs.

The Future of U.S. Foreign Aid

If USAID’s creation under President Kennedy was a pivotal moment in expanding U.S. influence, its suspension under Trump marked a significant shift in American foreign policy. While some viewed the agency as a tool for global stability, others saw it as a political instrument rather than a genuine development body.

With pressing global development challenges still at hand, one question remains: Will the U.S. revive USAID or establish a similar agency in the future, or has the era of American foreign aid come to an end?