TEMPO.CO, Jakarta – US Secretary of State Marco Rubio announced on Tuesday, July 1st, that the United States Agency for International Development (USAID) will officially cease the distribution of foreign aid starting July 1st. The aid program will now be directly managed by the Department of State.
“Foreign aid programs that align with government policies — and support American interests — will be run by the Department of State with better accountability, strategy, and efficiency,” Rubio said in his official statement.
He believes that every public official has a duty to American citizens to ensure that the programs they fund genuinely support national interests.
Rubio criticized USAID’s performance as being far below standard, despite spending more than US$715 billion (equivalent to Rp 11.606 trillion) over several decades.
He also criticized USAID for being seen to create a “global-scale NGO complex funded by taxpayers” with no tangible results since the end of the Cold War.
Rubio stated that development goals are rarely achieved, often exacerbating instability, and increasing anti-American sentiments in various countries. “The era of government-legitimized inefficiency has officially ended,” he said.
This move is a continuation of the massive effort to dismantle USAID that began during President Donald Trump’s second term. At that time, most contracts were canceled, thousands of positions were terminated, and almost all global USAID staff were placed on administrative leave.
Rubio previously announced that 83 percent of USAID programs were canceled after a six-week evaluation.
USAID manages over US$40 billion (approximately Rp 649 trillion) in the fiscal year 2023 budget. Last month, the US House of Representatives approved a policy package to retract funds amounting to US$8.3 billion (around Rp 134.6 trillion) from the agency.
USAID (United States Agency for International Development) is a US government agency responsible for distributing foreign aid in the fields of economic development, humanitarian aid, health, education, and democracy to over 100 countries worldwide.
USAID was established in 1961 by President John F. Kennedy as part of America’s strategy to support the development of developing countries and as a diplomatic tool to counter the influence of the Soviet Union during the Cold War era.
USAID operates independently but remains under the coordination of US foreign policy, particularly the Department of State. The agency is often referred to as an instrument of America’s “soft power,” as through its aid and programs, the US can expand its influence, build a positive image, and foster strategic cooperation with aid-receiving countries.
