U.S. shutters USAID in sweeping foreign aid overhaul, sparking fears of humanitarian crisis

• USAID, a key provider of American humanitarian aid since 1961, will cease operations.
• Secretary of State Marco Rubio announced the decision, calling it a cost-cutting move to eliminate inefficiency.
• Humanitarian groups, foreign policy experts and Democrats argue the shutdown will endanger millions, especially in conflict zones and poor nations.
• Aid will now focus on U.S. strategic interests, trade deals and private investment under the State Department.
• Former Presidents Bush and Obama condemned the move, warning of long-term damage to America’s global role.

The U.S. Agency for International Development (USAID), a cornerstone of American humanitarian aid for over six decades, has ceased operations on July 1, Secretary of State Marco Rubio announced Tuesday, July 1.

The decision, framed by the Trump administration as a cost-cutting measure to eliminate inefficiency, has drawn fierce backlash from humanitarian groups, foreign policy experts and Democrats who warn that millions of lives could be at risk.

The move follows a brutal six-week review by the Department of Government Efficiency (DOGE). The agency previously led by Elon Musk recommended axing more than 80 percent of USAID’s 6,200 active programs. Rubio defended the decision, arguing that USAID had become a bloated bureaucracy that wasted taxpayer money on ineffective projects while failing to advance U.S. interests.

But critics say the abrupt dismantling of USAID will have dire consequences, particularly in conflict zones and impoverished nations where American aid has long been a lifeline. A study published Monday, June 30, in The Lancet projected that the cuts could contribute to more than 14 million additional deaths by 2030, with nearly a third of them children under five.

USAID, which was established in 1961 under President John F. Kennedy, has been a primary vehicle for U.S. disaster relief, global health initiatives and economic development programs. Its recent dissolution marks the end of an era in which American aid was distributed through an independent agency, with future assistance now consolidated under the Department of State. (Related: Rubio: State Department has REVOKED over 300 visas of foreign students.)

Rubio framed the shift as a necessary realignment, insisting that foreign aid must serve U.S. strategic interests rather than what he called “government-sanctioned inefficiency.” He singled out controversial USAID-funded projects, including a $1.5 million diversity initiative in Serbia and a $70,000 “DEI musical” in Ireland, as examples of wasteful spending.

But humanitarian organizations say the cuts go far beyond trimming excess. Programs providing clean water, malaria prevention, HIV/AIDS treatment and education, particularly for girls in places like Afghanistan, are already shutting down.

The International Rescue Committee (IRC), which relied on USAID for 40 percent of its funding, has closed mobile health clinics, sanitation projects and underground schools for Afghan girls. “The one that really hits me is we had found ways to keep thousands of girls going to school, even under Taliban rule,” said Bob Kitchen, IRC’s vice president of emergency response. “Now, that has all stopped.”

The Lancet study found that USAID funding had prevented 91 million deaths between 2001 and 2021, primarily from HIV/AIDS, malaria and malnutrition. Without that support, researchers warned of a humanitarian crisis “similar in scale to a global pandemic or a major armed conflict,” but one that was “a conscious and avoidable policy choice.”

The Trump administration dismissed the findings, with a senior State Department official calling them “misapprehensions” of the new strategy. The official insisted that life-saving programs, like the president’s Emergency Plan for AIDS Relief (PEPFAR), would continue under State Department oversight, albeit with a greater emphasis on efficiency and partner contributions.

A shift toward “America First” aid

The administration’s new vision for foreign assistance prioritizes trade deals, private investment and bilateral agreements over traditional aid. Rubio described the approach as “prioritizing trade over aid, opportunity over dependency.” But critics argue this model ignores the immediate needs of vulnerable populations.

The dismantling of USAID also raises questions about America’s global leadership. Former Presidents George W. Bush and Barack Obama, in private farewell remarks to USAID staff, condemned the decision as a “colossal mistake.” Bush reportedly expressed deep concern over the program’s future.

The State Department insists there will be no operational gaps. But humanitarian groups remain skeptical, pointing to the sudden freeze on aid earlier this year that left clinics without medicine and food programs without funding.

The administration has promised a new “roadmap” for foreign assistance, but details remain vague. For now, the world is left to grapple with the fallout of an unprecedented retreat from global aid, one that could reshape America’s role in the world for decades to come.

Visit BigGovernment.news for more stories about the U.S. government’s attempts to end corruption. 

Watch Jesse Waters of Fox News explaining how USAID spends taxpayer money on foreign DEI.

This video is from the Son of the Republic channel on Brighteon.com.

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Sources include:

YourNews.com

ABCNews.go.com

TheLancet.com

Edition.CNN.com

Brighteon.com