Trump administration proposes to overhaul foreign aid structure

In early 2025, the Trump administration, alongside billionaire Elon Musk, initiated significant changes to the U.S. foreign aid system. This was marked by a proposal aiming to streamline the way billions of dollars of foreign aid are allocated. The new plan focuses on funding fewer areas that align with U.S. strategic geopolitical interests, departing from the traditional broad approach. It suggests renaming the U.S. Agency for International Development (USAID) to the U.S. Agency for International Humanitarian Assistance, emphasizing a shift toward humanitarian aid, disaster response, global health, and food security. Politically-oriented programs would be transferred to the State Department for direct management. This move follows a significant restructuring of USAID, which has faced substantial staff reductions and the termination of more than 80% of its grants under Trump's directive for a federal government size reduction. Critics have expressed concerns about potential violations of judicial authority, as seen in ongoing lawsuits against the administration pertaining to foreign aid disbursements. The administration had previously halted foreign aid payments, igniting legal disputes that emphasized the judicial branches' role in overseeing the executive's actions. U.S. District Judge Amir Ali's orders required the administration to process substantial payments to various organizations, a direction that faced resistance from Trump’s administration due to claims of a new review process. Despite these challenges, payments began to be processed, eventually resulting in compliance with court orders, though critics remained wary of the administration's management of foreign aid during the transition phase. This reform aims to bolster America's influence abroad while reassessing funding priorities to reduce dependency of foreign nations on U.S. aid, hinting at a more restrictive and strategic stance in international assistance policy.