Trump said USAID elimination will save costs as he steps up efforts to dismantle the agency, putting its continued existence in jeopardy. Claiming the agency is a financial waste and is staffed by “lunatics,” he has decided to take decisive action to abolish it. He placed a 90-day freeze on almost all foreign aid on his first day in office. Trump’s Department of Government Efficiency chief, Elon Musk, stated Monday that the government was “feeding USAID into the wood chipper.” By Thursday, there were rumors that the 10,000-person workforce might be reduced to fewer than 300 workers.

This action will halt life-saving global health projects, early warning systems, and food security initiatives, leaving billions of dollars in aid in limbo. Trump is targeting “wasteful spending that does not align with the America First agenda while curbing Chinese influence abroad,” according to White House Deputy Press Secretary Anna Kelly. Many analysts, however, contend that the changes will have the opposite impact and weaken American power globally.

China Poised to Gain from U.S. Aid Withdrawal

China is prepared to fill the power void left by the removal of USAID, according to several experts. Senator Andy Kim of New Jersey claimed that Trump’s move was essentially giving the United States more access to its rivals and enemies while undermining American leadership during a period of increased national security challenges.

Through significant investments, especially through the Belt and Road Initiative, which has invested hundreds of billions of dollars in infrastructure and economic development throughout Asia, Africa, Latin America, and portions of Europe, China has been extending its footprint in the developing world for years. President Xi Jinping is actively promoting China’s image as the Global South’s natural leader, according to Steve Tsang, director of the China Institute at the School of Oriental and African Studies. Although it is unlikely that China will directly replace USAID’s funding, Tsang clarified that eliminating the organization would allow China to project a more stable and dependable image than the U.S., thereby enhancing its geopolitical standing.

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Debate Over USAID’s Role and Future

President John F. Kennedy established USAID in 1961 to advance social and economic development worldwide while resisting Soviet influence in developing nations. The organization has supported initiatives to build climate resilience, opened up trade opportunities, and stabilized countries over the years. In addition to addressing energy poverty, USAID climate programs have established a “level playing field” for American renewable energy firms, according to former USAID Chief Climate Officer Gillian Caldwell.

Trump said USAID elimination will save costs, but experts argue that dismantling the agency could weaken U.S. influence and create a power vacuum that benefits China. However, some contend that the impact of USAID has been exaggerated. Dismantling USAID, according to Max Primorac, a senior research scholar at the Heritage Foundation and a former deputy official under Trump, would not help China but rather free countries from what he called USAID’s “green energy agenda,” which he said forced them to depend on China. Additionally, he contended that the agency’s promotion of “ideology,” such as climate change efforts, had cost it credibility.

Although no specifics have been given, Acting Administrator and Secretary of State Marco Rubio has indicated that some of USAID’s funding may be retained in light of the agency’s uncertain future. Experts warn that the damage might already be done even if some programs survive. According to Tsang, Trump’s actions in only two weeks have improved China’s reputation internationally more than President Xi has in more than a decade.

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