USAID Funding Row: Which Countries Stand To Lose The Most If Trump Shuts Down Funds?

As US President Donald Trump and billionaire tech mogul Elon Musk continue to push for the shutdown of USAID. As per the latest orders, the Trump administration is eliminating over 90 percent of the US Agency for International Development's foreign aid contracts. Additionally, Trump has also cancelled around $60 billion in overall US assistance around the world.

USAID's shutdown has triggered outrage across the United States. While advocates have filed cases with courts to stop Trump's plan to cut foreign assistance, many key projects, such as the one combating Ebola in Africa is expected to face cuts.

What Is The Reason Behind The USAID Shutdown?

Hours after taking oath as the President of the United States, Donald Trump along with his "close advisor" Elon Musk stated that they would work to reduce foreign aid.

After issuing a 90-day pause on all foreign assistance, the US State Department issued a "stop work" order for assistance, with exceptions for Israel and Egypt.

As per Elon Musk, there is "no need for USAID" and deemed the aid agency as a "criminal organisation." Adding to Musk's statements, Trump stated that USAID will be revamped and is likely to be merged with the US State Department, taking away the agency's independent establishment title, which was established by President Bill Clinton in 1998.

Stating that by shutting down the agency, the Trump administration will "use taxpayer dollars wisely to advance American interests."

Both Trump and Musk have also stated that USAID projects have a "liberal agenda" and a sheer "waste of money."

However, experts have deemed that the effects of shutting down foreign aid, especially from the US, would have global repercussions. As per the Organisation for Economic Cooperation and Development, the United States is the largest contributor globally when it comes to foreign assistance, and shutting USAID down would have a drastic impact on life all across the world.

USAID And India

Among all the countries which have received foreign aid from the United States is India. After the USAID overhaul was announced, the US' aid to India made the top headlines after Trump criticised funding for voter turnout in India.

Trump claimed that around 21 million dollars had been granted to India for "voter turnout." After repeating the statement multiple times, the 온라인카지노 Finance Ministry stated that all USAID funds in India were related to agriculture and other programmes and not voter turnout.

As per FinMin, the US agency funded seven projects worth $750 million in 2023-24 in India. These projects focus on agriculture, food security programmes; water, sanitation and hygiene (WASH); renewable energy; disaster management and health.

USAID's funding for India began in 1951 and over the years around 17 billion dollars have been granted to India for over 555 projects in different sectors.

Amid the political row, India's External Affairs Minister S Jaishankar stated that the remarks raised by Trump were "concerning" but the US agency was allowed to fund in "good faith."

With a freeze in all USAID funding, healthcare projects in India are expected to be impacted the most. In India, a majority of USAID's funds were directed towards the healthcare sector, followed by environmental projects and governance.

But how will this freeze impact other countries?

Which Country Stands To Lose The Most?

USAID funds projects in around 120 countries, with a majority of the focus on fighting epidemics, education, clean water and areas of development.

With the stop work order, staff has been laid off in over 25 countries, especially in areas which report two-thirds of global child deaths.

As per , in 2023, 181 countries and regions were appropriated around 45 billion dollars, of which around 11 billion dollars were dedicated to health, followed by peace and security, humanitarian assistance, and economic development.

Countries in Asia and the Sub-Saharan Africa regions were the most reliant on USAID and funds from the US. As per OECD data accessed by Reuters, countries such as Thailand, Marshall Islands, South Africa, Botswana and Eswatini rely on the US for over half of their foreign aid.

In countries like Kenya and Ghana, anti-malaria programmes have come to a standstill. While the funding for the AIDS programmes continues, the UN's AIDS agency has warned if funding is pulled, over six million people could die from the disease.

In Uganda, the USAID freeze impacted the programmes to combat the Ebola Virus. However, Elon Musk stated that the funds of this programme have been restored after they were "accidentally" cut.

Reuters further adds that in the Middle East and North Africa regions, USAID funds focus on peace and security and a majority of the organisation's overall funds are directed to this sector.

With the stop work and freeze on aid, only Israel and Egypt are now beneficiaries of foreign assistance from the US.

In Israel and Egypt, the US continues to fund "stabilisation operations." However, countries like Jordan and Iraq are likely to be cut from the list.

In Asia and Oceania region, Afghanistan, Pakistan and the Philippines were the highest beneficiaries of USAID with funding focused on "stabilisation operations and security sector reforms."

Despite the withdrawal of US troops from Afghanistan in 2020 and the Taliban takeover, Kabul has received the highest amount of aid (over 53 billion dollars) between 2014 and 2024.

Over in Europe, Eurasia and the Western Hemisphere, a majority of the funding goes to Ukraine, especially after Russia's invasion of the country. The aid to Ukraine is more military and economic in nature.

With the freeze underway, all non-military programmes across USAID funded countries are expected to take a hit.