USAID shutdown: America’s retreat from world

National Association of Humanitarian Workers estimates that more than 50,000 jobs in aid sector will be affected by the shutdown

Muslim Network TV Analysis

WASHINGTON (MNTV) – The Trump administration’s decision to dismantle USAID is sending shockwaves across the world. For more than six decades, USAID has been a pillar of American global influence, driving foreign aid and humanitarian assistance.

Its closure represents a fundamental shift in U.S. foreign policy, raising urgent concerns about humanitarian crises, geopolitical balance, and economic repercussions.

Since its founding in 1961, USAID has played a critical role in international development. Operating in more than 100 countries, the agency has provided billions of dollars in aid to support health, education, disaster relief, and economic stability.

In 2022 alone, USAID disbursed over $40 billion in foreign assistance. It has been a vital instrument of U.S. diplomacy, bolstering relationships with developing nations while mitigating conditions that lead to conflict and extremism.

USAID’s reach extends to global health initiatives such as the President’s Emergency Plan for AIDS Relief (PEPFAR), which has saved an estimated 25 million lives since its inception. It has also been instrumental in responding to crises, from famine relief in Africa to earthquake recovery in Haiti.

These programs do not just benefit recipient countries—they reinforce American security and economic interests worldwide.

The newly set up Department of Government Efficiency (DOGE) led by billionaire adviser Elon Musk has aggressively pursued the closure of USAID, branding it as inefficient and mismanaged.

During a live session on X Spaces, Musk revealed that after discussions with Trump, the president agreed that the agency was “beyond repair.”

This move followed a controversial security standoff within USAID, where senior officials refused to grant Musk’s team access to classified documents. Their removal and the eventual takeover of restricted materials by DOGE further intensified scrutiny of the administration’s intentions.

With USAID’s website taken offline and foreign aid funding frozen, thousands of humanitarian workers have lost jobs, and critical aid programs have been suspended.

Secretary of State Marco Rubio defended the move, arguing that USAID had been “mismanaged and politicized.” However, critics warn that dismantling the agency jeopardizes America’s global standing.

The abrupt shutdown of USAID threatens to derail decades of progress in international development. Millions of people who depend on U.S. aid for healthcare, food security, and education now face uncertainty.

Health Impact

USAID has been a global leader in fighting infectious diseases. Programs tackling HIV/AIDS, malaria, and tuberculosis now risk losing crucial funding, jeopardizing millions of lives.

Dr. Anthony Fauci, former director of the National Institute of Allergy and Infectious Diseases, warned that “losing USAID’s support will set back decades of progress in global health.”

Food and Agriculture

The agency has funded numerous agricultural projects that combat food insecurity. Countries already grappling with famine, such as Ethiopia and Yemen, are expected to suffer severe setbacks. The United Nations estimates that 45 million people worldwide rely on USAID-funded food assistance programs.

Disaster Relief

USAID has been a first responder to global disasters, from hurricanes in the Caribbean to refugee crises in the Middle East. Without it, the burden falls on underfunded UN agencies and NGOs. According to the International Rescue Committee, “the removal of USAID funding will create one of the worst humanitarian gaps in recent history.”

Oxfam America has called the USAID freeze “an existential threat” to humanitarian organizations. The World Health Organization warns that vital health interventions could collapse, leading to preventable deaths.

Geopolitical consequences

Beyond humanitarian concerns, the dismantling of USAID marks a strategic retreat that could reshape global power dynamics.

In Syria, the aid freeze has severely affected camps like Al-Hol, which houses approximately 37,000 individuals, many linked to the ISSI group. The suspension has led to chaos with key aid providers like Blumont briefly halting operations due to funding uncertainties.

Camp director Jihan Hanan criticized the freeze, highlighting its detrimental effects on already dire humanitarian situations.

For decades, American aid has counterbalanced the influence of rival powers such as China and Russia. With the U.S. stepping back, these countries are poised to expand their foothold in the developing world.

China’s Belt and Road Initiative (BRI) has already made inroads in Africa, Asia, and Latin America. By offering infrastructure projects and economic partnerships, Beijing is set to fill the void left by USAID.

Countries that once looked to the U.S. for assistance may now turn to China, potentially shifting political allegiances.

Meanwhile, Russia has sought to deepen its influence through energy diplomacy and military cooperation. The absence of U.S. aid could accelerate Moscow’s reach in regions historically supported by USAID, particularly in Eastern Europe and Central Asia.

As Democratic Senator Elizabeth Warren noted, “Shutting down USAID weakens America’s hand in the world. It cedes leadership to adversaries who do not share our values.”

Experts say the closure of USAID is not just a foreign policy issue—it carries significant economic consequences. Foreign aid has long been an investment in global stability that ultimately benefits the U.S. economy.

Aid organizations that relied on USAID funding now face an uncertain future, with ripple effects across industries tied to international development. The National Association of Humanitarian Workers estimates that more than 50,000 jobs in the aid sector will be affected by the shutdown.

Experts argue that the cost of providing foreign aid is far lower than the price of military interventions. Without USAID’s stabilizing influence, the risk of conflicts escalating—and requiring U.S. military involvement—could rise.

Former military leaders have repeatedly stressed that investments in foreign aid reduce the likelihood of costly wars. Retired General David Petraeus once remarked, “If we don’t fund diplomacy and development, we will be forced to spend more on bullets and bombs.”

With USAID’s dissolution, alternative models of aid delivery are being considered.

The Trump administration has suggested shifting responsibilities to private sector initiatives and philanthropic organizations. While private actors can supplement aid efforts, they are unlikely to match the scale and coordination of government-backed programs.

Some experts suggest that the U.S. may adopt a more selective approach to foreign assistance, prioritizing strategic allies and specific crisis zones. However, such an approach risks leaving behind vulnerable populations and diminishing long-term development goals.

The Trump administration’s decision to dismantle USAID is seen as not just a bureaucratic shift—but a fundamental change in America’s role in global affairs. As the U.S. withdraws from international aid, the world is left to grapple with the consequences.

Will private initiatives and other nations step in to fill the gap? Or will the absence of American leadership create deeper instability and embolden geopolitical rivals?

The answers to these questions will shape the future of U.S. influence for years to come.

But one thing is certain: the world will not forget the moment when America abandoned one of its most powerful tools for peace and prosperity.