Only foreign aid programs “that align with the interests of the United States” will now be absorbed by the State Department. Photo: United States Embassy in Venezuela.
Guacamaya, July 3, 2025. On Tuesday, July 1, the United States Agency for International Development (USAID) officially ceased operations after more than 60 years of service. This measure, driven by the Donald Trump administration and formalized by Secretary of State Marco Rubio, leaves the future of millions of people and development programs worldwide uncertain.
The U.S. government’s justification for the definitive closure of USAID is based on the alleged inefficiency of the agency, waste of resources, and cases of embezzlement and fraud. According to Rubio, recent international aid policies failed to support national interests, prompting a search for a more responsible and efficient management of resources.
“As of July 1, USAID will officially stop providing foreign aid. Foreign aid programs that align with the Administration’s policies—and that promote American interests—will be managed by the State Department, where they will be carried out with greater responsibility, strategy, and efficiency,” Rubio stated on the State Department’s website.
On January 24, USAID had suspended its activities for 90 days as part of executive orders signed by Donald Trump aimed at reevaluating U.S. foreign aid. Two weeks later, Elon Musk, director of the newly created Department of Government Efficiency (DOGE), announced the imminent closure of the agency, calling it a “criminal organization.”
Before the aid freeze period, USAID accounted for 0.3% of U.S. federal spending. Following the definitive closure, reactions quickly emerged. A study published in the medical journal The Lancet warns that cuts in foreign aid due to USAID’s closure could cause more than 14 million additional deaths worldwide by 2030.
“We estimate that, over the last two decades, programs funded by USAID have helped prevent more than 91 million deaths globally, including 30 million child deaths,” the researchers added. According to them, the impact of the closure would be comparable to a global pandemic or armed conflict, especially in low- and middle-income countries.
Impact on Latin America and the Venezuelan case
Following the measure, Latin America will also face the suspension of funds and the paralysis of key social programs. In 2024, the region received $2.3 billion from USAID out of the $44 billion distributed worldwide, mainly allocated to initiatives related to migration management, humanitarian assistance, and support for civil society.
The Venezuelan case is particularly striking, as the South American country went from receiving $8 million in 2014 to over $211 million in 2024, multiplying the funds assigned in the last decade by 26 times. The distribution of these resources was mainly among humanitarian assistance ($132.3 million), democracy and human rights ($33.1 million), and health ($14.55 million).
The worsening political and economic crisis under Nicolás Maduro’s administration was the main reason for this increase. The government repeatedly accused international cooperation of financing the opposition and destabilizing activities. As a result, Venezuelan NGOs, besides being unable to continue vital activities, have opted for silence to avoid reprisals.
