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USAID officially shuts down after Trump's budget cuts
The agency ceased operation after six decades

USAID officially shuts down after Trump's budget cuts

Jul 02, 2025
06:53 pm

What's the story

The United States Agency for International Development (USAID) has officially ceased operations after over six decades. The closure was announced by President Donald Trump's administration, which had previously cut 85% of the agency's programming. The move has been met with criticism from former presidents George W Bush and Barack Obama, who both praised USAID's work in their farewell messages to staff members.

Criticism voiced

'Will the world be better off?'

Bush highlighted the importance of PEPFAR, a major US initiative to combat HIV/AIDS during his presidency. He asked whether it was in the national interest that "25 million people who would have died now live?" Obama called the decision to end USAID "inexplicable" and predicted it would be remembered as a "colossal mistake." A study in The Lancet warned that over 14 million people could die by 2030 due to these cuts, including many children.

Defense offered

Secretary of State defended closure

Secretary of State Marco Rubio defended the closure, arguing that USAID's "charity-based model" created an "addiction" in developing nations' leaders. He claimed trade was a more effective approach. A senior State Department official also dismissed The Lancet study as based on "incorrect assumptions," claiming aid would continue but in a more efficient manner. "I think he's been very clear that a lot of the life-saving work that we do will continue and will be made more efficient," the official said.

Aid impact

'Thousands of children will die'

The closure of USAID has had a major impact on millions of people around the world. The International Rescue Committee's Bob Kitchen said nearly 400,000 Sudanese refugees are now without acute aid, and over 500,000 Afghans have been cut off from education and healthcare. European Union nations and Britain have also reduced their support as they increase defense spending under Trump's encouragement.

Security concerns

Kitchen's warning

Kitchen warned that these cuts would not only worsen emergencies but also weaken stable countries like Ethiopia and Kenya, which will have no backup if rains fail. He said, "If insecurity spreads...there's no line of defense anymore." The closure of USAID could also aggravate migration issues, a major concern for Trump.