USAID dissolution and global aid impacts

The dissolution of the United States Agency for International Development (USAID) by the Trump administration, driven by funding cuts from the Department of Government Efficiency (DOGE), has triggered significant humanitarian and economic shifts globally.

In South Sudan, the cuts have sparked debates over the effectiveness of previous American aid. Critics highlight ongoing humanitarian crises, while others point to historical failures, noting that high USAID spending coincided with civil war and famine. Audits previously indicated that governance programs lacked effective metrics, and much of the nation’s oil is now managed by Chinese and Malaysian state-owned companies rather than Western firms.

In Nepal, the reduction in funding resulted in the loss of approximately $329 million in humanitarian aid. This has impacted educational programs, including teacher training and literacy support across all 35 districts, and led to an estimated 30,000 direct job losses. While the cuts are linked to increased hunger, medicine shortages, and spikes in child trafficking, Nepal is attempting to pivot toward its private sector and leverage its youth population to drive growth following the loss of U.S. bilateral aid, which has been a staple for the country since 1951.

Broader global assessments highlight the loss of a primary tool for U.S. soft power diplomacy and disease prevention. A study in The Lancet previously credited USAID programs with preventing 91 million deaths during the first two decades of the 21st century, including 30 million deaths among children under age five. Experts warn that the full scale of the damage may remain unknown, as the reduction in funding has eliminated many frontline workers responsible for collecting mortality data, potentially masking the long-term effects of malnutrition and untreated diseases.