USAID: The Soft Power Tool of U.S. Influence

Watan-The primary American institution for humanitarian aid and international development projects has managed most of the official U.S. government spending on foreign aid since its founding in 1961, with an annual budget estimated in the tens of billions of dollars and a workforce of approximately 10,000 employees worldwide.

It is an independent government agency that has served as one of the United States’ soft power tools globally, operating under the guidance of the State Department and playing an active role in advancing U.S. foreign policy objectives.

Since his inauguration for a second term in January 2025, U.S. President Donald Trump has targeted the agency, placing it under the direct supervision of the State Department and temporarily freezing its foreign aid as part of a reassessment of its operations. He accused it of wasting money, running projects that do not align with U.S. interests and may contradict American values, and claimed that it contributes to destabilizing global peace.

Origins

USAID was established in 1961 by former U.S. President John F. Kennedy during the height of the Cold War. Its purpose was to manage U.S. foreign aid as a soft power tool to expand American influence abroad and counter Soviet power globally.

In 1961, the U.S. Congress passed the Foreign Assistance Act, which mandated the creation of a government agency to oversee foreign aid spending. Following this, Kennedy issued an executive order establishing USAID, which began operating after receiving congressional approval for its programs.

In 1998, Congress passed a law making USAID an independent institution. Under this law, the Secretary of State provided policy guidance and contributed to setting its budget and financial allocations, which were approved by Congress in alignment with U.S. interests worldwide.

The agency’s director is appointed by the U.S. president with Senate approval and reports regularly to the Secretary of State on its operations.

USAID gained greater significance during former U.S. President Joe Biden’s term (2021–2024), when its director was granted a permanent seat on the U.S. National Security Council. Previously, the agency had only participated in council meetings related to its work and development issues.

Objectives

USAID aims to achieve two main objectives through its development activities:

1. Improving living conditions in developing communities.
2. Advancing U.S. interests worldwide.

Based on this, USAID has implemented numerous humanitarian and development projects, along with programs aimed at improving conditions in impoverished communities. These initiatives have focused on:

• Supporting global economic growth.
• Improving global health.
• Combating poverty and hunger while promoting food security.
• Enhancing environmental sustainability.
• Eradicating illiteracy and strengthening education.
• Preventing and recovering from wars and conflicts.
• Providing emergency relief and humanitarian aid during natural disasters and wars.
• Promoting democracy abroad and protecting human rights.

USAID has used these projects to execute U.S. foreign policy, serve American interests worldwide, and strengthen U.S. political and economic influence abroad.

For decades, aid programs have been leveraged to build alliances against U.S. rivals like China and Russia and to support American economic interests by fostering economic growth in developing nations, integrating them into global trade, and creating markets and trade partners for the U.S.

Budget and Workforce

The United States is the world’s largest provider of humanitarian aid. Through USAID, the government has spent tens of billions of dollars annually on foreign aid, amounting to roughly 1% of the federal budget.

According to a Congressional Research Service report published in early 2025, USAID managed over $43 billion in the 2023 fiscal year (the latest year with complete financial data). This represented more than one-third of the budget allocated to the State Department, foreign operations, and related programs.

The agency employs approximately 10,000 individuals, about two-thirds of whom are stationed outside the U.S. This workforce includes direct employees, who make up less than half of the total, as well as indirectly hired staff such as personal services contractors and institutional support contractors.

Target Regions

USAID operates worldwide, with key regions including Europe and Eurasia, sub-Saharan Africa, the Middle East, North Africa, and various parts of South, East, and Central Asia.

The agency’s headquarters is in Washington, D.C., with additional offices in over 60 countries and field offices in various regions, including:

• Europe and Eurasia Office
• Asia Office
• Latin America and the Caribbean Office
• Middle East Office
• Office of Stability and Conflict Prevention
• Office of Democracy, Human Rights, and Governance
• Office of Humanitarian Assistance
• Office of Inclusive Growth, Partnerships, and Innovation
• Office of Resilience, Environment, and Food Security
• Office of Global Health
• Office of Foreign Assistance
• Office of Legislative and Public Affairs
• Office of Policy, Planning, and Learning

More than 100 countries benefit from USAID’s assistance annually, with a focus on strategically important nations and crisis-affected regions facing economic and humanitarian challenges.

The size and geographic distribution of aid vary yearly. In the 2023 fiscal year, USAID provided assistance to approximately 130 countries, with Europe and Eurasia receiving the largest share (about 40% of the agency’s budget), followed by sub-Saharan Africa and the Middle East/North Africa.

The top aid recipients that year were Ukraine, Ethiopia, Jordan, the Democratic Republic of the Congo, Somalia, Yemen, Afghanistan, Nigeria, South Sudan, and Syria.

Sectors and Programs

USAID covers multiple sectors, including health, education, agriculture, economic development, environmental protection, humanitarian aid, and governance. In 2023, governance programs received the largest share of funding, primarily due to support for the Ukrainian government.

The agency distributes aid through a wide range of development projects, executed via grants or agreements with American and foreign partners, including foreign governments, universities, non-profits, and for-profit contractors.

Key programs include:

• Global Health Initiatives: Focusing on combating infectious diseases like HIV/AIDS, malaria, and tuberculosis, along with vaccination programs and pandemic response efforts.
• Education Programs: Supporting inclusive education systems, training teachers, improving curricula, and enhancing school infrastructure.
• Economic Development Programs: Assisting small and medium enterprises, fostering sustainable agricultural practices, and facilitating access to markets.
• Environmental Conservation Initiatives: Addressing climate change, protecting biodiversity, and promoting sustainable resource management.
• Humanitarian Assistance Programs: Providing food, medical aid, and shelter in response to disasters and conflicts.
• Transition Initiatives: Supporting post-conflict recovery and political transitions.
• Economic Support Programs: Historically used to support Middle East peace efforts, but since 2022, primarily directed toward Ukraine.
• Democracy Promotion Programs: Strengthening civil society, electoral processes, and peaceful protests for reform.
• Independent Media Support: Funding media organizations operating under restrictive conditions.

In 2023, USAID funded over 6,000 journalists, 700 non-governmental media outlets, and around 300 media-focused NGOs in more than 30 countries, according to Reporters Without Borders.

Challenges

USAID faces several challenges due to shifting U.S. foreign aid priorities, congressional oversight, and financial constraints:

• Budgetary gaps between project needs and congressional allocations.
• Emergency funding fluctuations due to wars or natural disasters.
• Congressional mandates that direct resources toward political priorities, sometimes conflicting with USAID’s strategy.

Trump’s Actions

Upon taking office on January 20, 2025, President Donald Trump sought to dismantle or eliminate USAID entirely. He issued an executive order reassessing its operations and regulating foreign aid.

This led to a 90-day freeze on foreign aid (except for emergency food assistance), citing concerns over financial waste, misalignment with U.S. interests, and contributions to global instability.

Trump shifted USAID under the direct oversight of the State Department and appointed Secretary of State Marco Rubio as its acting director.

Elon Musk, a presidential advisor and head of the Government Efficiency Department in the Trump administration, stated that USAID “cannot be fixed” and should be shut down.

The decision halted most of USA