In 2023, the United States provided approximately $65 billion in development assistance, with around $50 billion allocated through the United States Agency for International Development (USAID). This accounted for about 42% of the United Nations' humanitarian aid. Experts warn that a sudden freeze on this aid would have catastrophic effects on global humanitarian efforts.
Significant changes have already been reported in Nepal, where up to 600,000 children receive vitamin B through USAID programs. Local NGOs have halted operations due to funding interruptions, impacting health initiatives aimed at combating diseases such as malaria, cholera, measles, and HIV, particularly in Africa.
USAID also plays a crucial role in supporting national budgets in recipient countries, aligning their policies with donor interests. The historical context of U.S. development assistance dates back to President Harry Truman in 1947 and the establishment of USAID by President John F. Kennedy in 1961, which has since become the largest bilateral development agency.
The shift in U.S. foreign aid policy may lead to a fundamental change in international relations, as humanitarian assistance often provides political leverage. For instance, Jordan has received billions in aid for accepting Palestinian refugees, which has contributed to its role as a stabilizing force in the Middle East.
Recent discussions indicate that USAID may be integrated into the State Department, reducing its autonomy. This change raises concerns about the future of funding for various programs, particularly those supporting women's rights and LGBTQ+ protections, while potentially increasing support for evangelical groups in Africa.
Overall, the evolving landscape of U.S. foreign aid may hinder access to global markets for American companies and diminish the competitive advantages previously enjoyed.