[Peace Headline] What is USAID? Understanding Trump’s USAID Cut and How Peace Network can help

What is USAID and How Does It Operate?

The United States Agency for International Development (USAID) is the U.S. government's primary foreign aid agency, responsible for directing billions of dollars in humanitarian assistance, economic development, and health initiatives worldwide. Founded in 1961 by President John F. Kennedy, USAID was established to consolidate and improve the effectiveness of U.S. foreign aid programs. The agency operates in over 100 countries, supporting efforts in disaster relief, economic growth, health care, democracy promotion, and food security.

A worker removes the U.S. Agency for International Development sign on their headquarters on February 07, 2025 in Washington, DC. President Donald Trump and Elon Musk's Department of Government Efficiency (DOGE) abruptly shutdown the U.S. aid agency earlier this week leaving thousands unemployed and putting U.S. foreign diplomacy and aid programs in limbo.

Photo credit: Photo by Kayla Bartkowski/Getty Images

USAID plays a crucial role in U.S. foreign policy by promoting global stability and prosperity while countering the influence of rival nations like China and Russia. However, despite its significance, USAID has frequently been a target for budget cuts due to political debates over its cost and effectiveness.

How USAID Allocates Its Budget

In the 2023 fiscal year, the U.S. allocated approximately $40 billion to foreign aid, with USAID accounting for about 0.3% of total federal spending. While this percentage has declined from 0.5% in 1980, USAID remains the world’s largest provider of humanitarian assistance. The budget is distributed across multiple sectors, including:

• $16.8 billion – Governance programs, including democracy and human rights initiatives.
• $10.5 billion – Humanitarian assistance for disaster relief, conflict zones, and refugee crises.
• $7.0 billion – Global health programs, combating diseases like HIV/AIDS, malaria, and tuberculosis.
• $3.5 billion – Administrative expenses and operational costs.
• $1.6 billion – Other development programs.
• $1.3 billion – Agricultural programs to enhance food security.
• $1.1 billion – Education initiatives.
• $1.0 billion – Infrastructure investments.
• $0.7 billion – Economic growth projects.

Regional Distribution of USAID Funds

A significant portion of USAID's funding is allocated based on geopolitical and humanitarian priorities. The top regions receiving aid in 2023 were:

• $17.2 billion – Europe and Eurasia, primarily supporting Ukraine’s war effort and reconstruction.
• $12.1 billion – Sub-Saharan Africa.
• $5.5 billion – Multi-regional programs.
• $3.9 billion – Middle East and North Africa.
• $1.9 billion – South and Central Asia.
• $1.8 billion – Western Hemisphere.
• $1.1 billion – East Asia and Oceania.

The top recipients of USAID assistance included Ukraine, Ethiopia, Jordan, the Democratic Republic of Congo, Somalia, Yemen, Afghanistan, Nigeria, South Sudan, and Syria.

Officials from USAid World Food Programme inspect a donation of $11m worth of food aid in Harare, Zimbabwe, on 17 January. Photograph: Tsvangirayi Mukwazhi/AP

Trump and Elon Musk’s Cuts: What Do They Mean?

Recent budget proposals by former President Donald Trump, alongside Elon Musk’s Department of Government Efficiency (DOGE), have led to severe funding cuts for USAID. These reductions have already begun affecting global aid programs, with major consequences such as:

• Reduction in Disaster Relief: USAID’s ability to respond to emergencies, such as earthquakes and humanitarian crises, is significantly weakened.
• Health Program Disruptions: Clinics treating HIV/AIDS in Africa have shut down due to lack of funding.
• Economic and Social Impact: Infrastructure and education initiatives in developing nations face stagnation.
• Weakened Diplomatic Influence: With reduced aid, U.S. global influence is diminished, allowing competitors like China to expand their foreign assistance programs.

The cuts have already forced the closure of USAID-supported Safe Mobility Offices in Latin America, which assisted migrants seeking legal U.S. entry. In Mexico, clinics and shelters have shut down due to lost funding, leaving vulnerable populations without critical services.

With a commitment to transparency and efficiency, Peace Network is redefining humanitarian aid. As traditional institutions face challenges—whether from budget cuts, policy shifts, or bureaucratic delays—Peace Network provides a decentralized, direct, and reliable alternative.

The recent changes in government aid policies, funding cuts, shifting priorities raise an important question: Is there an alternative solution to navigate these challenges?

This is where Peace Network comes in. By leveraging blockchain technology and a decentralized approach, Peace Network ensures aid reaches those in need directly—free from bureaucratic delays, political influence, and inefficiencies. It’s not just a new model for humanitarian aid; it’s a necessary evolution.

The Role of Peace Network in Filling the Gap

As USAID scales back, organizations like Peace Network are stepping in to provide immediate, effective aid to those in need. Unlike government-run programs, Peace Network is designed for rapid response and direct action. Its initiatives include:

• Immediate Humanitarian Assistance: Providing food, clean water, and medical supplies to disaster-stricken areas.
• Collaboration with Local NGOs: Working with regional partners to ensure efficient resource distribution.
• Sustainable Development Initiatives: Supporting economic and healthcare programs to empower local communities.

With USAID funding uncertain, Peace Network’s role in humanitarian aid has never been more critical. By prioritizing direct support, local partnerships, and agile response strategies, Peace Network is ensuring that those most affected by aid cuts do not fall through the cracks