​Crippling aid work: On the U.S. freeze on foreign assistance

Insularity often stems from contempt, and the kind now being exhibited by U.S. President Donald Trump and his administration is no exception. Withdrawing from international commitments has become a defining feature of Mr. Trump’s foreign policy, and the latest decision to freeze foreign assistance adds to the list of drastic moves, following the withdrawal from WHO and the Paris Accord. This decision will disrupt established global aid structures and have dire consequences for the millions who rely on U.S. assistance for survival. While the full impact is yet to unfold, it is clear to those in the development sector that a cascade of negative repercussions is imminent. On his first day in office, Mr. Trump imposed a 90-day freeze on foreign assistance, citing inefficiencies and ideological opposition to USAID. His administration argues that USAID misallocates funds and operates at odds with his policies. Elon Musk, head of the Department of Government Efficiency, went so far as to label USAID a viper’s nest of radical-left Marxists who hate America. The official USAID website has been stripped of its content, but announced that all personnel would be placed on administrative leave, with only a few exceptions for mission-critical staff. The administration also ordered the rapid repatriation of overseas USAID personnel within 30 days.

USAID was established in 1961 as an independent agency under the Foreign Assistance Act, designed to provide global humanitarian and development aid. According to the U.S. government’s official spending tracker (USASpending.gov), USAID was allocated $44.2 billion in the 2024 budget. While this amounts to just 0.4% of the total U.S. federal budget, media reports indicate that it accounted for nearly 42% of all humanitarian aid tracked by the UN in 2024. USAID funds a range of programmes which include health care, food aid (including assistance to Gaza), and policy advocacy. The agency has maintained a strong presence in India since the 1960s, supporting initiatives in education, immunisation, HIV/TB prevention, polio eradication, and child health. Though direct financial aid to India has declined in recent years, USAID contributions still amounted to over $150 million for the latest fiscal year. However, in many conflict-ridden regions, USAID remains a lifeline. Withdrawing from international aid efforts is more than a bureaucratic shift: it risks leaving millions without food, medical assistance and critical resources. The decision reflects an inward-looking approach that dismisses the interconnectedness of global affairs. As the U.S. retreats from its historical leadership in international development, the world will be left grappling with the consequences of this reckless policy shift.