Our thinking

A Global Blow

14 February, 2025

In just a few weeks, 40% of global humanitarian assistance has ceased. This abrupt halt is due to President Trump and Elon Musk’s decision to suspend all USAID funding, placing thousands of staff on administrative leave. USAID’s budget was around $40bn per year, amounting to roughly 0.6% of US federal spending.  

The consequences are profound. The cuts have led to food shortages, reduced access to essential health services, and the interruption of life-saving care for HIV and maternal health in many low-income countries. Women’s empowerment programs, which are crucial to our work with the Gates Foundation, are also facing closure. Our partners across Africa are seeing the end of programmes that protect women and girls from harm and that provide essential life skills to support their families. There is a risk of millions of deaths; this article in the New York Times sheds light on the real and shocking impact.   

Critics of USAID often question the legitimacy of international development. Martin Wolf recently reflected on USAID’s journey, highlighting the importance and necessity of foreign development assistance. After World War II, the US aimed to be a different kind of great power, focusing on economic development, building global alliances, and establishing international law. Since its founding in 1961, USAID has contributed to a significant decline in extreme poverty, from 59% in 1950 to 8.5% in 2024, despite a tripling of the world population. This is an incredible achievement that the US should be proud of.  

Instead, Musk has branded USAID as a “one of the biggest globalist terror organizations in history” and stated, “time for it to die”. This nonsensical attack comes at a time when supporting global wellbeing is more crucial than ever. The World Bank’s latest Global Economic Prospects report notes, global economic growth is slowing, and the performance of low-income developing countries is particularly concerning. 

International development and multilateral institutions can continue to drive the creation of a more equal, prosperous, and healthier world. That’s not just good for the people that are directly helped; it’s also good for businesses who do better when citizens thrive in stable and prosperous economies. While the US may have temporarily lost its way in this mission, it is now up to other nations, businesses, philanthropists, and foundations to bridge the gap.

By Alice Railton