05 Apr Open the Doors of USAID
In early February, the United States Agency for International Development USAID) was essentially disbanded, experiencing mass layoffs and forced closure of its headquarters in Washington, D.C.. This executive order dismantled an important agency, both domestically and internationally. United States foreign assistance funding constitutes a significant percentage of worldwide foreign aid, and shutting down these programs not only jeopardizes the health and safety of various countries and communities, but also poses issues for American citizens who work alongside these assistance efforts.Â
USAID’s budget is a mere 1.2 percent of the federal budget ($71.9 billion in 2023), the agency is the largest donor of foreign assistance, contributing to over 40% of all foreign aid. This money is used to fund international organizations such as the World Food Program, the United Nations Children Fund, and countless other partners with similar missions, along with sponsoring numerous projects in over 120 countries.
Geopolitical Impact.  Though many argue that USAID projects are often antithetical to the country’s national interests, the reality is that the agency allows the United States to create long-lasting, positive relations with partnering countries while preventing the extension of influence from its adversaries. Ceasing funds abruptly means that affected communities and US relations are both at risk. By turning away from foreign aid, other countries will step in to fill these funding gaps. Funding issues aside, this rapid change to foreign aid distribution may also reduce global trust in the US as countries question the nation’s ability to follow through on projects. This distrust could further weaken America’s diplomatic relations with both former USAID recipient countries and with new countries in the future.
Domestic Impact. While cutting USAID primarily impacts countries abroad, this termination of funding also carries domestic ramifications. As the agency is the leading provider of global humanitarian food aid, cutting USAID has also meant ending government contracts with farmers. In 2020, the federal government bought $2 billion worth of food aid from American farmers, and while this number is a small portion of the entire agriculture market, it does provide stability for those contract employees and fills a demand gap for specific grains. Even food aid received prior to the funding freeze has yet to be delivered and it is not being sent to its planned destination.Â
Thinking of our Friends. For those of us at one80 design and Double-0 Marketing, this is troubling on so many fronts. At the top of the list is the pain and heartache suffered by many of the agencies and firms who we have worked with for 20 plus years. Our heart goes out to organizations such as IESC (Improving Economies for Stronger Communities), Global Communities, The Kaizen Company, Counterpart International, Pathfinder International, Creative Associates, and the countless organizations who provide sustainable programs for poverty, health systems, education, governance, global trade and so many critical issues facing vulnerable communities. We wish the absolute best to employees, their families, and the international communities they serve.