What is USAID and how Trump freezing its assets could affect humanitarian works in India, other countries

In a major development that has global implications, especially for the Global South, the Donald Trump administration has moved one step closer to shutting down the United States Agency for International Development (USAID), one of the largest official aid agencies in the world.

CREDIT: AP

Trump, Musk close to shutting down USAID

Trump's Secretary of State, Marco Rubio, announced on Monday that he is the acting administrator of USAID and directed the freezing of almost all foreign aid by the agency, which has a presence in over 100 countries.

BREAKING: Massive protests have erupted in front of the USAID building following Donald Trump¡¯s and Elon Musk¡¯s unlawful attempts to shut USAID down. The resistance to Trump and Musk¡¯s incompetence is growing. pic.twitter.com/EvRNmKaX9I

¡ª Democratic Wins Media (@DemocraticWins) February 3, 2025

Earlier, DOGE Chief Elon Musk had posted on X, stating that he ¡°spent the weekend feeding USAID into the wood chipper.¡±

Musk had called USAID a "criminal organisation" and said it is "time for it to die."

US President Trump also threw his weight behind shutting down USAID, saying it ¡°should have been done a long time ago.¡±

Trump described USAID as "a group of radical left lunatics."

"I love the concept, but they turned out to be radical left lunatics. The concept of it is good, but it's all about the people," he said.

What is USAID

USAID has a budget of around $50 billion, which is spent on humanitarian work around the world.

CREDIT: REUTERS

The US Congress passed the Foreign Assistance Act on 4 September 1961, which reorganised foreign assistance programmes and mandated the creation of an agency to administer economic aid.

USAID was subsequently established by an executive order of President John F. Kennedy in 1961 with the aim of having a single agency to manage U.S. foreign assistance.

USAID has missions in over 100 countries, primarily in Africa, Asia, Latin America, the Middle East, and Eastern Europe.

USAID in India

The US has been involved in humanitarian work in India since 1951, and after the formation of USAID, all the activities came under the agency.

CREDIT: REUTERS

Over the decades, USAID has been involved in initiatives related to clean energy, education, health, food security, women's empowerment, and climate change in India.

Freezing USAID funds would effectively deprive India of $140 million, which the country was set to receive for various ongoing projects.

For more news and current affairs from around the world, please visit Indiatimes News.