Trump’s Shocking Plan to Shut Down USAID: What It Means for the World

TN HEADLINES24
13 Min Read
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Artistic depiction: The Trump administration is reportedly planning to shut down USAID or merge it into the State Department

Prelude

Trump’s plan to shut down USAID could reshape global aid and US diplomacy. Learn about the consequences, legal battles, and what’s next for international development.

Introduction

The Trump administration is reportedly planning to shut down USAID or merge it into the State Department, slashing its budget and workforce. USAID, the United States Agency for International Development, has been a pillar of humanitarian aid since 1961, providing food, healthcare, and disaster relief to millions worldwide.

Why is Trump making this move? What would the consequences be if USAID ceases to exist? Let’s break it down.

What is USAID and What Does It Do?

USAID was established to manage US foreign aid and humanitarian programs. With a workforce of 10,000 employees, it operates in over 60 countries, funding projects that combat famine, disease, and disasters.

Key USAID Programs:

  1. Food Aid & Famine Prevention – USAID provides emergency food supplies and runs the world’s top famine detection system.
  2. Healthcare Initiatives – Funds polio vaccinations, pandemic prevention, and clean water access.
  3. Disaster Relief – Responds to earthquakes, hurricanes, and humanitarian crises.
  4. Support for Ukraine – Aids wounded soldiers, landmine clearance, and economic recovery.

Most of these projects are carried out through grants to NGOs and local partners.

How Much Does USAID Cost?

The US is the world’s biggest foreign aid provider, and USAID is the largest chunk of that spending.

  1. Total US foreign aid budget (2023): $68 billion
  2. USAID’s share: $40 billion
  3. UK’s total foreign aid: £15.3 billion (¼ of the US budget)

While USAID costs billions, its advocates argue that it prevents crises, promotes stability, and strengthens US global influence.

Why Do Trump and Musk Want to Overhaul USAID?

Trump has long criticized foreign aid, arguing that taxpayer money should be spent at home, not abroad. He has called USAID officials “radical lunatics” and has pushed to cut its budget since his first term.

Public Opinion Supports Cutting Foreign Aid

Polls show that many Americans believe foreign aid is wasteful.

After returning to office in 2025, Trump signed an executive order freezing international aid for 90 days. The State Department halted most USAID projects, except for a few humanitarian programs.

Elon Musk’s Role in USAID’s Shutdown

  1. Musk was tasked with identifying federal budget cuts and has been vocal about his opposition to foreign aid spending.
  2. His team was denied access to USAID’s financial data, leading to security officials being placed on leave.
  3. Musk on X (Twitter): “We should shut it down.”

This sparked high tensions between the White House and USAID leadership.

Marco Rubio Takes Over USAID

On Monday, Secretary of State Marco Rubio declared himself “acting head” of USAID, accusing its leadership of “insubordination.”

Key Developments:

  1. USAID’s website went offline.
  2. Employees were told to stay home.
  3. Rubio stated that aid spending must align with “America’s national interest.”

Can Trump Legally Shut Down USAID?

Despite Trump’s influence, he cannot shut down USAID with an executive order.

  1. USAID was created through the Foreign Assistance Act of 1961, which mandates the existence of a foreign aid agency.
  2. Congress reaffirmed its independence in 1998, making it difficult to dismantle.
  3. Abolishing USAID requires an act of Congress, where Republicans hold a slim majority—but legal battles are expected.

The Alternative: Merging USAID with the State Department

Since outright elimination is legally complicated, the Trump administration is considering absorbing USAID into the State Department.

  1. This move would reduce its independence and budget.
  2. It would tie foreign aid more closely to US foreign policy.

📌 Similar Example: The UK merged its Department for International Development (DFID) with the Foreign Office in 2020—critics say it weakened UK aid expertise.

What Happens if USAID is Shut Down?

If USAID disappears or is drastically cut, the global impact would be severe.

Potential Consequences:

  1. Humanitarian Aid Disruptions – Millions could lose access to food, medicine, and clean water.
  2. Crisis in Ukraine – USAID funds prosthetic limbs for injured soldiers, mine clearance, and rebuilding efforts.
  3. Increased Disease Risk – USAID helps prevent pandemics; cuts could slow responses to future outbreaks.
  4. Weaker US Global Influence – Foreign aid boosts US diplomacy—a withdrawal could let China and Russia expand influence.

National Security Risks

  1. Syria Example: US aid helps fund prison security for thousands of ISIS fighters.
  2. Funding freezes led to prison guards threatening to quit, raising fears of ISIS breakouts.

Democrats and aid organizations argue that cutting USAID is not just a moral issue—but a security risk.

What Happens Next?

For now, USAID remains in limbo.

  1. The spending freeze is in place.
  2. The decision will likely be settled in Congress or the courts.

If Trump merges USAID into the State Department, it would be a historic shift in US foreign aid policy—potentially ending America’s leadership in global humanitarian efforts.

  1. Congress will decide the agency’s fate.
  2. Legal battles are expected.
  3. The world is watching.

Conclusion

Trump’s plan to shut down or merge USAID could have massive global consequences. While some support cutting foreign aid, critics warn it could harm US diplomacy, global security, and humanitarian efforts.

With Congress and courts involved, the fate of USAID remains uncertain—but one thing is clear: the world is watching.

TN HEADLINES24 INSIGHTS

The potential shutdown of USAID is one of the most controversial foreign policy decisions of the Trump administration. While some argue that it will save taxpayer money, others warn of global humanitarian crises and weakened US influence. The decision’s long-term effects remain uncertain, but the world is closely watching.

TN HEADLINES24 READERS’ INSIGHTS

What do you think about Trump’s plan to shut down USAID? Should the US government reduce foreign aid spending, or will this decision harm US diplomacy and global stability? Share your thoughts in the comments below!

Also readhttps://tnheadlines24.com/can-trump-legally-end-us-birthright-citizenship/

TN HEADLINES24 BOTTOM LINE

  1. USAID is a major global aid agency, funding food, healthcare, and disaster relief.
  2. Trump’s plan aims to shut it down or merge it into the State Department.
  3. Legal barriers exist, as Congress must approve its closure.
  4. Potential consequences include humanitarian crises, weaker US influence, and security risks.
  5. The final decision will depend on Congress, courts, and political negotiations.
  6. The world is watching, and the outcome will shape global aid policy for years.

FAQs

1. Why does Trump want to shut down USAID?
He believes foreign aid is wasteful and should be spent domestically.

2. Can Trump shut down USAID legally?
No, Congress must approve the closure, and legal battles are expected.

3. What happens to USAID’s projects if it’s shut down?
Many programs will be cut, merged, or redirected to align with US foreign policy.

4. How will this affect global humanitarian efforts?
It could lead to food shortages, health crises, and weakened global security.

5. What is the alternative to shutting down USAID?
The administration may merge it with the State Department rather than eliminate it.

TN HEADLINES24 QUIZ | TEST YOURSELF

1. What is USAID’s primary role?
A) Military strategy
B) Humanitarian aid and development
C) Trade agreements
D) Immigration control

2. How much of the US foreign aid budget does USAID handle?
A) $10 billion
B) $25 billion
C) $40 billion
D) $68 billion

3. What key area does USAID NOT focus on?
A) Food security
B) Space exploration
C) Disease prevention
D) Disaster relief

4. What is Trump’s primary reason for wanting to shut down USAID?
A) To increase military spending
B) To reduce government costs
C) To strengthen ties with Russia
D) To expand private-sector aid efforts

5. Who is reportedly helping identify federal budget cuts?
A) Bill Gates
B) Elon Musk
C) Jeff Bezos
D) Warren Buffett

6. What happened after Musk’s team was denied access to USAID’s financial data?
A) USAID shut down immediately
B) Musk lost interest in the project
C) Two senior officials were placed on leave
D) Congress intervened

7. Who declared themselves as the “acting head” of USAID?
A) Joe Biden
B) Marco Rubio
C) Nancy Pelosi
D) Antony Blinken

8. What country has received significant USAID funding recently?
A) North Korea
B) Ukraine
C) Switzerland
D) Japan

9. What legal obstacle prevents Trump from shutting down USAID directly?
A) The United Nations
B) The US Constitution
C) The Foreign Assistance Act of 1961
D) The Supreme Court

10. What would likely happen if USAID is fully shut down?
A) Increased US global influence
B) Strengthened humanitarian efforts worldwide
C) Disruptions in global aid programs
D) No significant change in global aid

TN HEADLINES24 | VOCABULARY CHALLENGE

1. What does “humanitarian aid” mean?
A) Military assistance
B) Help given to improve human welfare
C) Political intervention
D) Economic sanctions

2. What is the meaning of “geopolitical”?
A) Relating to space travel
B) Concerning global politics and strategy
C) About financial markets
D) Related to ancient history

3. What is the best synonym for “famine”?
A) Abundance
B) Food shortage
C) Rainfall
D) Trade surplus

4. What does “insubordination” mean in the article?
A) Loyalty
B) Disobedience to authority
C) Enthusiasm
D) Diplomacy

5. What does “mandate” mean?
A) To prohibit
B) An official order or requirement
C) A casual suggestion
D) A legal loophole

6. What is the best antonym for “abolish”?
A) Destroy
B) Maintain
C) Eliminate
D) Block

7. What does “budget freeze” imply?
A) Increased spending
B) No changes in spending
C) Halting all financial activities temporarily
D) Unlimited funding

8. What does “sovereignty” mean?
A) Dependence on another country
B) The ability of a state to govern itself
C) A financial crisis
D) A type of tax

9. What is the meaning of “diplomacy”?
A) The art of managing international relations
B) A military strategy
C) A type of trade agreement
D) A scientific method

10. What is a “controversial” decision?
A) Widely accepted
B) Sparking debate or disagreement
C) Legally required
D) Unimportant

ANSWERS

TN HEADLINES24 QUIZ | TEST YOURSELF

1. B | 2. C | 3. B | 4. B | 5. B | 6. C | 7. B | 8. B | 9. C | 10. C

TN HEADLINES24 | VOCABULARY CHALLENGE

1. B | 2. B | 3. B | 4. B | 5. B | 6. B | 7. C | 8. B | 9. A | 10. B

 

 

Disclaimer: TN HEADLINES24 provides news insights for informational purposes only. While we strive for accuracy, we do not guarantee absolute correctness. The views expressed do not necessarily reflect our stance. Readers should verify information independently before making decisions. TN HEADLINES24 is not responsible for any consequences arising from reliance on this article. Respectful discussion is encouraged.

 

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TN Sinha, founder of TN HEADLINES24, curates the latest news on national, international, education, technology, finance, politics, travel, lifestyle, and history. He sources updates from trusted online platforms to deliver accurate and engaging content. Passionate about keeping readers informed, he simplifies complex topics for easy understanding. TNHEADLINES24 is your go-to destination for timely and reliable news.
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