Why in News
Recently, U.S. President Donald Trump froze foreign aid for 90 days, including assistance from USAID, to assess program efficiency and alignment with U.S. foreign policy.
This freeze has disrupted aid disbursement worldwide, affecting ongoing projects
USAID's personnel were also placed on administrative leave, except for critical staff, while the agency's website removed content, signaling the severity of the freeze.
What is USAID (U.S. Agency for International Aid) ?
USAID, created in 1961, is a U.S. government agency responsible for administering foreign aid and development assistance globally.
It works in sectors like health, education, food security, climate change, and democracy, providing grants, technical assistance, and funding for development programs.
In 2024, it received $44.2 billion, contributing to about 42% of the UN's tracked humanitarian aid.
Impact of the Freeze
The freeze could severely affect countries like Ukraine, Ethiopia, and Yemen, where USAID supports critical programs such as healthcare, food security, and poverty alleviation.
A potential pullback in funding, particularly for HIV/AIDS programs, could lead to a significant loss of life, with an estimated 6 million people potentially dying from HIV if funding is halted.
While some exceptions for critical programs are mentioned, details remain unclear.
Political and Criticism
Elon Musk, leading the Department of Government Efficiency, has threatened to shut down USAID, calling it a 'criminal organization.'
Critics argue that Trump's focus on 'America First' could isolate the U.S. from global humanitarian efforts, which could harm global health and development.
Experts, including former USAID officials, warn that the move would be disastrous for both the U.S. and developing countries, especially the Global South.
Impact on India
USAID has contributed around $1.5 billion to India over the years, primarily focusing on health, energy, and water supply.
While the funding has decreased in recent years, the halt in USAID's operations could disrupt ongoing projects, especially in health sectors like HIV/AIDS, TB, and maternal health.
India’s government may need to step in to ensure that these programs continue, as USAID has instructed organizations in India to suspend operations temporarily.
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