Instant Insight

30-Second Take

• The U.S. Agency for International Development (USAID) is facing significant changes and potential dismantling under current administration policies.
• These changes could have far-reaching implications for global humanitarian and development efforts.
• The move is seen as a victory for autocratic regimes that oppose U.S. foreign aid and democratic values.

Quick Brief

2-Minute Digest

Essential Context

The current administration has initiated a series of actions aimed at reorganizing or potentially dissolving USAID, an agency that has provided non-security assistance globally for over six decades. This includes shutting down the USAID website, terminating hundreds of staff, and closing the USAID building.

Core Players

• USAID – Primary U.S. agency for non-security foreign assistance
• Secretary of State Rubio – Appointed as Acting USAID Administrator
• The State Department – Potential new home for USAID functions
• Office of Inspector General – Oversees USAID’s programming and personnel

Key Numbers

• 60+ years – USAID’s operational history
• $25 million – Threshold for new and underutilized partners under the New Partnerships Initiative (NPI)
• 1% – Percentage of USAID funding directly allocated to local organizations in the Rohingya crisis
• 90 days – Duration of the review period for foreign aid programs under recent executive orders

Full Depth

Complete Coverage

The Catalyst

The current administration’s move to reorganize or dismantle USAID was triggered by criticisms that the agency has conflicting, overlapping, and duplicative functions, and that its systems are not well coordinated.

Secretary of State Rubio has emphasized these points, suggesting that USAID is unresponsive to the State Department and influenced by “left-wing and ‘woke’ politics,” though no evidence has been provided to support these claims.

Inside Forces

Internal dynamics within the administration and the State Department are driving these changes. The administration has issued executive orders to pause almost all foreign aid programs and initiate a 90-day review to assess alignment with administration policy.

This has created chaos and disruption in global aid efforts, particularly in regions like Ukraine and Gaza, where USAID is a key provider of non-security assistance.

Power Dynamics

The power dynamics at play involve the administration’s desire to consolidate and streamline foreign aid functions, potentially under the State Department. This move could significantly alter the way U.S. foreign assistance is delivered and managed.

Secretary Rubio, as the Acting USAID Administrator, holds considerable influence in shaping these changes, which are also aligned with broader administration policies against diversity, equity, and inclusion initiatives.

Outside Impact

The dismantling of USAID would have broader implications for global humanitarian efforts and the promotion of democratic values. Autocratic regimes could see this as a victory, as it would reduce U.S. influence and support for democratic movements worldwide.

Moreover, the move could undermine the effectiveness of U.S. foreign aid, which has been crucial in regions experiencing complex emergencies. Local organizations, which USAID has been trying to empower through initiatives like the New Partnerships Initiative, might face significant challenges in continuing their work.

Future Forces

Looking ahead, the future of USAID and U.S. foreign aid hangs in the balance. The ongoing reviews and potential reorganization could lead to lasting changes in the way the U.S. engages in global development and humanitarian efforts.

Key areas to watch include:

• Localization efforts and support for local organizations
• Coordination with the State Department and other international organizations
• Impact on global humanitarian and development programs
• Response from Congress and other stakeholders

Data Points

• 2019: Launch of the New Partnerships Initiative (NPI) to empower new and underutilized partners
• 2024: Executive orders issued to pause foreign aid programs and review alignment with administration policy
• 2025: Top management challenges for USAID include measuring effectiveness, relying on international organizations, and hiring skilled staff
• 2025: USAID continues to prioritize locally led development despite significant challenges