Pete Marocco dismantles USAID and shapes future foreign aid policies

In 2025, the United States faced significant changes in foreign aid, notably marked by the dismantling of the United States Agency for International Development (USAID) led by Pete Marocco. This transition followed Marocco's attempts in 2020 during the Trump administration, where he encountered resistance from senior officials who viewed foreign assistance as a vital element of U.S. diplomacy. Reportedly frustrated by what he perceived as corruption and inefficiency in the aid sector, Marocco adopted an aggressive approach, laying the groundwork for extensive cuts to various aid programs and claiming a need for more accountability. As Marocco transitioned to his new role, discussions surrounding foreign aid shifted significantly. His leadership style remained confrontational, and there was skepticism regarding his commitment to humanitarian efforts, particularly in health, democracy, and human rights. Notably, an upcoming briefing indicated that Marocco intended to reassess the constitutional basis of foreign aid. This has led to concerns among current and former agency officials that his approach was rooted in a personal vendetta against previously established practices at USAID, effectively representing a “revenge tour” against the agency's previous initiatives. On a related note, Australia also announced a strategic shift in its foreign aid spending, reallocating resources to the Pacific region as the U.S. reduced its foreign assistance budget by over 90%. This decision was partially influenced by an anticipated gap created by the U.S. cuts, prompting Australia to enhance its focus on its immediate geographical neighbors. The Australian government declared that three-quarters of its foreign aid would be directed towards the Indo-Pacific region, marking a significant change in its financial commitments to ensure regional stability amidst the evolving global landscape. The simultaneous restructuring occurring in both the U.S. and Australia highlights a broader reevaluation of foreign aid strategies during uncertain geopolitical times. As priorities shift, it raises critical questions about the future of international development assistance and how nations will balance national interests with global humanitarian responsibilities.