What is USAID? Why President Donald Trump and Elon Musk want to end it?

What is USAID? Why President Donald Trump and Elon Musk want to end it?
The US Agency for International Development, known as USAID, was established during the Cold War in 1961. (AFP)
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Updated 03 February 2025

What is USAID? Why President Donald Trump and Elon Musk want to end it?

What is USAID? Why President Donald Trump and Elon Musk want to end it?
  • Since its establishment in 1961, Republicans and Democrats have fought over the USAID and its funding.
  • Its first mission was to counter Soviet influence abroad through foreign assistance

WASHINGTON: Dozens of senior officials put on leave. Thousands of contractors laid off. A freeze put on billions of dollars in humanitarian assistance to other countries.
Over the last two weeks, President Donald Trump’s administration has made significant changes to the US agency charged with delivering humanitarian assistance overseas that has left aid organizations agonizing over whether they can continue with programs such as nutritional assistance for malnourished infants and children.
Then-President John F. Kennedy established the US Agency for International Development, known as USAID, during the Cold War. In the decades since, Republicans and Democrats have fought over the agency and its funding.
Here’s a look at USAID, its history and the changes made since Trump took office.
What is USAID?
Kennedy created USAID at the height of the United States’ Cold War struggle with the Soviet Union. He wanted a more efficient way to counter Soviet influence abroad through foreign assistance and saw the State Department as frustratingly bureaucratic at doing that.
Congress passed the Foreign Assistance Act and Kennedy set up USAID as an independent agency in 1961.
USAID has outlived the Soviet Union, which fell in 1991. Today, supporters of USAID argue that US assistance in countries counters Russian and Chinese influence. China has its own “belt and road” foreign aid program worldwide operating in many countries that the US also wants as partners.
Critics say the programs are wasteful and promote a liberal agenda.
What’s going on with USAID?
On his first day in office Jan. 20, Trump implemented a 90-day freeze on foreign assistance. Four days later, Peter Marocco — a returning political appointee from Trump’s first term — drafted a tougher than expected interpretation of that order, a move that shut down thousands of programs around the world and forced furloughs and layoffs.
Secretary of State Marco Rubio has since moved to keep more kinds of strictly life-saving emergency programs going during the freeze. But confusion over what programs are exempted from the Trump administration’s stop-work orders — and fear of losing US aid permanently — is still freezing aid and development work globally.
Dozens of senior officials have been put on leave, thousands of contractors laid off, and employees were told Monday not to enter its Washington headquarters. And USAID’s website and its account on the X platform have been taken down.
It’s part of a Trump administration crackdown hitting the federal government and its programs. But USAID and foreign aid are among those hit the hardest.
Rubio said the administration’s aim was a program-by-program review of which projects make “America safer, stronger or more prosperous.”
The decision to shut down US-funded programs during the 90-day review meant the US was “getting a lot more cooperation” from recipients of humanitarian, development and security assistance, Rubio said.




US billionaire Elon Musk arrives for the inauguration ceremony before Donald Trump is sworn in as the 47th US President, Jan. 20 (AFP)

What do critics of USAID say?
Republicans typically push to give the State Department — which provides overall foreign policy guidance to USAID — more control of its policy and funds. Democrats typically promote USAID autonomy and authority.
Funding for United Nations agencies, including peacekeeping, human rights and refugee agencies, have been traditional targets for Republican administrations to cut. The first Trump administration moved to reduce foreign aid spending, suspending payments to various UN agencies, including the UN Population Fund and funding to the Palestinian Authority.
In Trump’s first term, the US withdrew from the UN Human Rights Council and its financial obligations to that body. The US is also barred from funding the UN agency for Palestinian refugees, or UNRWA, under a bill signed by then-President Joe Biden last March.
Why is Elon Musk going after USAID?
Musk’s Department of Government Efficiency, known as DOGE, has launched a sweeping effort empowered by Trump to fire government workers and cut trillions in government spending. USAID is one of his prime targets. Musk alleges USAID funding has been used to launch deadly programs and called it a “criminal organization.”
What is being affected by the USAID freeze?
Sub-Saharan Africa could suffer more than any other region during the aid pause. The US gave the region more than $6.5 billion in humanitarian assistance last year. HIV patients in Africa arriving at clinics funded by an acclaimed US program that helped rein in the global AIDS epidemic of the 1980s found locked doors.
There are also already ramifications in Latin America. In southern Mexico, a busy shelter for migrants has been left without a doctor. A program to provide mental health support for LGBTQ+ youth fleeing Venezuela was disbanded.
In Colombia, Costa Rica, Ecuador, and Guatemala, so-called “Safe Mobility Offices” where migrants can legally apply to enter the US have been shuttered.
The aid community is struggling to get the full picture— how many thousands of programs have shut down, and how many thousands of workers were furloughed and laid off under the freeze?
How much does the US spend on foreign aid?
In all, the US spent about roughly $40 billion in foreign aid in the 2023 fiscal year, according to a report published last month by the nonpartisan Congressional Research Service.
The US is the largest provider of humanitarian assistance globally, although some other countries spend a bigger share of their budget on it. Foreign assistance overall amounts to less than 1 percent of the US budget.
Could Trump dissolve USAID on his own?
Democrats say presidents lack the constitutional authority to eliminate USAID. But it’s not clear what would stop him from trying.
A mini-version of that legal battle played out in Trump’s first term when he tried to cut the budget for foreign operations by a third.
When Congress refused, the Trump administration used freezes and other tactics to cut the flow of funds already appropriated by Congress for foreign programs. The General Accounting Office later ruled that it violated a law known as the Impoundment Control Act.
It’s a law we may be hearing more of.
“Live by executive order, die by executive order,” Musk said on X Saturday in reference to USAID.


South Korea’s military has shrunk by 20% in six years as male population drops

South Korea’s military has shrunk by 20% in six years as male population drops
Updated 3 sec ago

South Korea’s military has shrunk by 20% in six years as male population drops

South Korea’s military has shrunk by 20% in six years as male population drops
  • The dramatic decline in the pool of available males for military service is also causing a shortfall in the number of officers
  • South Korea’s military has steadily declined since the early 2000s when it had about 690,000 soldiers
SEOUL: South Korea’s military shrank by 20 percent in the past six years to 450,000 troops, largely due to a sharp drop in the population of males of enlistment age for mandatory service in the country with the world’s lowest birthrate, a report said on Sunday.
The dramatic decline in the pool of available males for military service is also causing a shortfall in the number of officers and could result in operational difficulty if it continues, the defense ministry said in the report.
The report was made to the ruling Democratic Party member of parliament Choo Mi-ae, whose office released it.
South Korea’s military has steadily declined since the early 2000s when it had about 690,000 soldiers. The pace accelerated during the late 2010s and there were about 563,000 active-duty soldiers and officers in 2019.
North Korea is believed to have an active-duty military of about 1.2 million, according to the latest estimate by the defense ministry in 2022.
In the period between 2019 and 2025, the population of 20-year-old males declined by 30 percent to 230,000, according to government data, the age when most men who pass a physical exam enlist for military service, which is now 18 months long.
The military has cited improved capabilities as a key reason for shortening service periods, made possible by a military alliance with the United States and the development of a defense industry that has become a major exporter of arms.
Able-bodied men served 36 months in 1953 when the Korean War ended in an armistice.
South Korea’s defense budget, at more than 61 trillion won ($43.9 billion) in 2025, is larger than the estimated size of North Korea’s economy.
Still, the military is 50,000 troops short of the number of troops adequate for maintaining defense readiness, the ministry said. About 21,000 of the shortfall is in the non-commissioned officer ranks, it said.
South Korea is one of the world’s fastest aging societies and has the lowest fertility rate in the world at 0.75 in 2024, which signifies the average number of babies a woman is expected to have during her reproductive life.
Its population, which hit a peak of 51.8 million in 2020, is expected to shrink to 36.2 million by 2072, according to a government projection.

Chinese state media says Nvidia H20 chips not safe for China

Chinese state media says Nvidia H20 chips not safe for China
Updated 10 August 2025

Chinese state media says Nvidia H20 chips not safe for China

Chinese state media says Nvidia H20 chips not safe for China
  • A social media account affiliated with China’s state media said Nvidia’s H20 chips pose security concerns for China
  • The account also mentioned that the chips are neither technologically advanced nor environmental friendly

BEIJING: Nvidia’s H20 chips pose security concerns for China, a social media account affiliated with China’s state media said on Sunday, after Beijing raised concerns over backdoor access in those chips.
The H20 chips are also not technologically advanced or environmentally friendly, the account, Yuyuan Tantian, which is affiliated with state broadcaster CCTV, said in an article published on WeChat.
“When a type of chip is neither environmentally friendly, nor advanced, nor safe, as consumers, we certainly have the option not to buy it,” the article concluded.
Nvidia did not immediately respond to a request for comment. H20 artificial intelligence chips were developed by Nvidia for the Chinese market after the US imposed export restrictions on advanced AI chips in late 2023. The administration of US President Donald Trump banned their sales in April amid escalating trade tensions with China, but reversed the ban in July. China’s cyberspace watchdog said on July 31 that it had summoned Nvidia to a meeting, asking the US chipmaker to explain whether its H20 chips had any backdoor security risks — a hidden method of bypassing normal authentication or security controls.
Nvidia later said its products had no “backdoors” that would allow remote access or control.
In its article, Yuyuan Tantian said Nvidia chips could achieve functions including “remote shutdown” through a hardware “backdoor.”
Yuyuan Tantian’s comment followed criticism against Nvidia by People’s Daily, another Chinese state media outlet. In a commentary earlier this month, People’s Daily said Nvidia must produce “convincing security proofs” to eliminate Chinese users’ worries over security risks in its chips and regain market trust.


Ukraine drone attack kills one, damages industrial facility in Saratov, Russia says

Ukraine drone attack kills one, damages industrial facility in Saratov, Russia says
Updated 10 August 2025

Ukraine drone attack kills one, damages industrial facility in Saratov, Russia says

Ukraine drone attack kills one, damages industrial facility in Saratov, Russia says
  • Social media footage showed thick black smoke rising over what looked like an industrial zone
  • Rosneft-owned refinery in the Saratov forced to suspend operations earlier this year for safety reasons

One person was killed, and several apartments and an industrial facility were damaged in a Ukrainian drone attack on the south Russian region of Saratov, the governor said on Sunday.

Roman Busargin posted on the Telegram messaging app that residents were evacuated after debris from a destroyed drone damaged three apartments in the overnight attack.

“Several residents required medical assistance,” Busargin said. “Aid was provided onsite, and one person has been hospitalized. Unfortunately, one person has died.”

Russian air defense units destroyed 121 Ukrainian drones overnight, including eight over the Saratov region, the defense ministry said. It reports only how many drones its defense units down, not how many Ukraine launches.

Busargin did not specify what kind of industrial site was damaged.

Social media footage showed thick black smoke rising over what looked like an industrial zone. Reuters verified the location seen in one of the videos as matching file and satellite imagery of the area. Reuters could not verify when the video was filmed.

Ukrainian media, including the RBK-Ukraine media outlet, reported that the oil refinery in the city of Saratov, the administrative center of the region, was on fire after a drone attack.

Reuters could not verify those reports. There was no official comment from Russia.

The Rosneft-owned refinery in the Saratov city was forced to suspend operations earlier this year for safety reasons after Ukrainian drone attacks, industry sources told Reuters.

Russia’s SHOT Telegram channel, which often publishes information from sources in the security services and law enforcement, reported about eight explosions were heard over Saratov and Engels, cities separated by the Volga River.

Russia’s civil aviation authority Rosaviatsia said on Telegram that flights in and out of Saratov had been halted for about two hours early on Sunday to ensure air safety.

Both sides deny targeting civilians in their strikes on each other’s territory in the war that Russia launched with a full-scale invasion of Ukraine in February 2022.

Kyiv says its attacks inside Russia are aimed at destroying infrastructure that is key to Moscow’s war efforts, including energy and military infrastructure, and are in response to Russia’s continued strikes.


Chile copper mine to restart operations after deadly collapse

Chile copper mine to restart operations after deadly collapse
Updated 10 August 2025

Chile copper mine to restart operations after deadly collapse

Chile copper mine to restart operations after deadly collapse
  • Chile is the world’s largest copper producer, responsible for nearly a quarter of global supply

SANTIAGO: The world’s largest underground copper mine was set to resume operating on Sunday, after a deadly cave-in suspended work for more than a week.
Chile’s Mining Ministry ordered El Teniente to halt activity on August 1 to allow rescuers to search for five miners trapped after a “seismic event” caused the collapse of a tunnel the day before.
All five were found dead.
Whether the cause of the shaking was due to an earthquake or drilling remains under investigation.
State-owned operator Codelco said normal operations would resume on Sunday.
Chile is the world’s largest copper producer, responsible for nearly a quarter of global supply, with about 5.3 million metric tons (5.8 million tons) in 2024.
El Teniente contributed 356,000 metric tons — nearly seven percent — of the country’s total copper.
The metal is critical for wiring, motors and renewable energy technology.
Chile’s mining industry is considered among the safest in the world, with a fatality rate of 0.02 percent in 2024, according to the National Geology and Mining Service of Chile.


After busy first 100 days, Germany’s Merz faces discord at home

After busy first 100 days, Germany’s Merz faces discord at home
Updated 10 August 2025

After busy first 100 days, Germany’s Merz faces discord at home

After busy first 100 days, Germany’s Merz faces discord at home
  • Having achieved his life’s ambition at age 69 to run Europe’s top economy, Friedrich Merz lost no time to push change
  • Merz’s heavy focus on global events has earned him the moniker of ‘foreign chancellor’ – but trouble looms at home

BERLIN: German Chancellor Friedrich Merz has driven sweeping changes in security, economic and migration policy during his first 100 days in office, but faces widening cracks in his uneasy coalition.

On election night in February, a jubilant Merz promised to bring a bit of “rambo zambo” to the post – using a colloquialism that can evoke a wild and joyous ride, or chaos and mayhem.

Having achieved his life’s ambition at age 69 to run Europe’s top economy, Merz lost no time to push change, mostly in response to transatlantic turbulence sparked by US President Donald Trump.

“Germany is back,” Merz said, vowing to revive the economy, the military and Berlin’s international standing after what he labelled three lackluster years under his center-left predecessor Olaf Scholz.

Even before taking office, Merz’s Christian Democrats (CDU/CSU) and their governing partners from Scholz’s Social Democratic party (SPD) loosened debt rules and unlocked hundreds of billions of euros for Germany’s armed forces and its crumbling infrastructure.

Merz vowed to build “Europe’s largest conventional army” in the face of a hostile Russia and keep up strong support for Ukraine in lockstep with Paris and London.

A promise to ramp up NATO spending endeared Merz to Trump, who greeted him warmly at a White House meeting in June, only weeks after a jarring Oval Office showdown with Ukrainian President Volodymyr Zelensky.

When Israel bombed Iranian targets, Merz, with a penchant for strong and often controversial one-liners, praised it for doing the “dirty work” – but last Friday he took the bold step of freezing arms exports to Israel over its Gaza campaign.

On the home front, Merz has pressed a crackdown on irregular migration, a sharp departure from the centrist course of his long-time party rival Angela Merkel.

He has said he must address voter concerns about immigration to stem the rise of the far-right Alternative for Germany (AfD) party, which won a record 20 percent in February’s election.

Merz’s heavy focus on global events has earned him the moniker of “foreign chancellor” – but trouble looms at home, where his SPD allies have often felt overshadowed or sidelined.

To many of them, Merz’s right-wing positions have been hard to swallow in the marriage of convenience they entered following the SPD’s dismal election outcome of 16 percent.

German voters have not yet fallen in love with Merz either. His personal approval rating slipped 10 points to just 32 percent in the latest poll by public broadcaster ARD.

In an early sign of trouble, Merz’s inauguration on May 6 turned into a white-knuckle ride when rebel MPs opposed him in the first round of the secret ballot.

He was confirmed in the second round, but the debacle pointed to simmering resentment in the left-right coalition.

Many have chafed at his hard line on immigration, his vow to slash social welfare and his limited enthusiasm for climate protection.

Merz also sparked controversy when he dismissed plans to hoist an LGBTQ rainbow flag on the parliament building by saying the Reichstag was “not a circus tent.”

The biggest coalition crisis came last month, sparked by what should have been routine parliamentary business – the nomination of three new judges to Germany’s highest court.

Right-wing online media had strongly campaigned against one of them, SPD nominee Frauke Brosius-Gersdorf, calling her a left-wing activist on abortion and other issues.

The CDU/CSU withdrew support for her and postponed the vote, sparking SPD fury. The issue looked set to fester until Brosius-Gersdorf withdrew her candidature on Thursday.

Other trouble came when the CDU’s Bavarian sister party demanded sharp cuts to social benefits for Ukrainian refugees, a position the SPD opposes.

Vice Chancellor Lars Klingbeil of the SPD warned the conservatives to refrain from further provocations, telling Welt TV that “we already have far too many arguments in this government.”

Both coalition partners know that open squabbling will turn off voters after discord brought down Scholz’s three-party coalition, and play into the hands of the AfD, their common foe.

For now Merz and most other politicians are on summer holidays, leaving unresolved issues lingering.

Merz will need to pay attention, said Wolfgang Schroeder of Kassel University.

“The chancellor’s attitude is: I think big-picture and long term, I’m not interested in the small print,” he said.

But Schroeder added that all the coalition’s big troubles so far – from the judge row to Ukrainians refugees – “have been about the small print.”