The Trump administration, alongside billionaire Elon Musk, is pushing for a major overhaul of the US Agency for International Development (USAID), citing concerns over wasteful spending and misaligned priorities. President Trump has long criticized foreign aid, arguing that it fails to serve US taxpayers’ interests. USAID, in particular, has been a frequent target of his ire.

The White House has released a list of USAID projects it claims exemplify “waste and abuse,” including a 1.5million grant loan for LGBTQ group in Serbia, 2.5 million for electric vehicles in Vietnam, and $6 million for tourism in Egypt. Critics, however, dispute the administration’s characterization of these projects. For instance, the Egypt initiative, launched under Trump in 2019, also funded water, education, and transportation projects in the North Sinai region.

Upon returning to office, Trump signed an executive order freezing nearly all international spending for a 90-day review. While waivers were later issued for humanitarian programs, the freeze caused significant disruption to global aid efforts. Programs providing life-saving medications and clean water supplies were abruptly halted, with one veteran aid worker describing the pause as “like an earthquake across the aid sector.”

The administration’s campaign against USAID has been marred by misinformation. Musk, for example, shared a debunked video falsely claiming that USAID funded Hollywood celebrities’ visits to Ukraine. Tensions escalated when Musk’s representatives were denied access to secure data at USAID headquarters by senior security officials, who were subsequently placed on leave.

Secretary of State Marco Rubio, tasked by the White House with overseeing USAID, has stated that many of the agency’s functions will continue but must align with national interests. Public opinion appears to support cuts to foreign aid, with decades of polling data from the Chicago Council on Global Affairs showing broad backing for reducing overseas spending.

Can Trump Shut Down USAID?
While the White House has significant influence over USAID, its power is not absolute. Established in 1961 under the Foreign Assistance Act, USAID was created by an executive order from President John F. Kennedy. Its status as an independent agency was solidified by law in 1998, meaning Trump cannot unilaterally abolish it. Any attempt to do so would likely face legal and congressional challenges.

Closing USAID entirely would require congressional approval, where Trump’s Republican Party holds slim majorities. The administration reportedly aims to integrate USAID into the State Department, mirroring the UK’s 2020 merger of its Department for International Development with the Foreign Office. While such a move could align aid spending with foreign policy goals, critics warn it could dilute expertise and diminish global influence.

Global Implications of USAID’s Overhaul
Given the scale of US international aid, changes to USAID’s operations would have far-reaching consequences. The agency’s work spans from providing prosthetic limbs to Ukrainian soldiers to clearing landmines and combating Ebola in Africa.

Rubio has emphasized that every dollar spent abroad must be justified by its contribution to US safety, strength, and prosperity. However, Democrats have condemned the administration’s actions as illegal and detrimental to national security. For example, reports indicate that US funding pauses nearly led prison guards in Syria, responsible for detaining Islamic State fighters, to walk off the job.

As Musk, empowered by Trump, seeks to slash billions from the federal budget, questions remain about the future of US overseas spending and its impact on global stability. The proposed changes to USAID could reshape international aid, but at what cost?