Power Plays And Human Costs: The Fall Of USAID – Analysis

By Dr. Htet Khaing Min

Key Takeaways:

1. The abrupt termination of USAID leaves millions without essential aid, worsening health, education, and human rights conditions globally, especially in Myanmar.
2. USAID’s closure weakens U.S. influence, allowing China and Russia to expand their soft power through aid and infrastructure investments.
3. The decision, driven by Trump and Elon Musk, prioritizes internal politics over global security, risking disease outbreaks, economic instability, and weakened democratic institutions. 

Introduction

In today’s world, national interest has become a relentless battle for power, where winning takes precedence over humanity. Leaders make decisions from high offices, absorbed in economic gains and global dominance, often blind to the human cost of their policies. With a single stroke of a pen, livelihoods are shattered and futures erased. The recent Trump administration’s abrupt termination of USAID is more than a bureaucratic decision—it is a devastating blow to millions. As Myanmar’s people endure civil war and humanitarian crises, this policy shift adds yet another layer of suffering. This article examines the decisions, their controversies, and the dire consequences for Myanmar’s people.

History of USAID

Established in 1961 under President John F. Kennedy, the United States Agency for International Development (USAID) was created to streamline U.S. foreign aid efforts. Inspired by the Marshall Plan, it aimed to combat poverty, promote economic growth, and counter Soviet influence during the Cold War. Its formation marked the start of the “decade of development,” setting the foundation for six decades of U.S. global assistance.

USAID operated with an annual budget approved by Congress through the State, Foreign Operations, and Related Programs (SFOPS) appropriation. In FY2023, it managed over $40 billion, distributing funds through grants, cooperative agreements, and contracts with NGOs, international organizations, and foreign governments. While USAID prioritized local partnerships for sustainable impact, political and economic factors often influenced its operations.

Global Support Highlights

Since its founding, USAID has been the world’s largest aid donor, distributing $43.8 billion in FY2023 alone. It funded critical sectors such as governance ($16.8 billion), humanitarian assistance ($10.5 billion), and health ($7 billion), alongside investments in economic growth, agriculture, infrastructure, and environmental sustainability. Operating in approximately 130 countries, USAID shaped global development, supporting regions from Sub-Saharan Africa to Asia and Europe.

Among its landmark achievements, USAID played a pivotal role in eradicating smallpox, advancing child survival campaigns, and revolutionizing agriculture through the Green Revolution. It has been instrumental in the fight against HIV/AIDS, with the President’s Emergency Plan for AIDS Relief (PEPFAR) saving over 26 million lives. USAID also led major disaster responses, from the Haiti earthquake to the COVID-19 pandemic and the Ukraine war.

USAID in Myanmar

USAID’s involvement in Myanmar has evolved through shifting political landscapes and humanitarian crises. Although its mission closed in 1989, the U.S. continued supporting Burmese refugees along the Thailand border. Health programs resumed in 1998, expanding significantly after Cyclone Nargis in 2008. A full USAID Mission was re-established in 2012, deepening U.S. engagement. After the 2021 military coup, USAID redirected $42.4 million away from projects that could benefit the regime, prioritizing humanitarian relief.

Over the years, USAID has supported health, democracy, human rights, food security, and economic development. It funded independent media, peace efforts, and education programs like the Diversity and Inclusion Scholarship Program (DISP). The agency also responded to crises, such as Typhoon Yagi in 2024, allocating $3 million in aid. Since 2012, the U.S. has committed nearly $1.5 billion to Myanmar’s democratic transition and economic reforms, with over $1.3 billion directed toward the Rohingya crisis since 2017. In 2024, USAID provided $238 million to Myanmar, with 47% ($111.86 million) dedicated to humanitarian assistance.

And to highlight one of the impactful USAID support projects in Myanmar, since 2011, Shae Thot project has improved health, food security, and water access for 1.34 million people in Myanmar. It provided 644,000 with clean water, trained 66,000 farmers, and empowered 1,360 villages with $2.1 million in community-led initiatives.

Trump is Back: Power Play

Donald Trump’s victory in the 2024 election marked a dramatic political comeback, bringing sweeping policy changes. On his first day in office, January 20, 2025, he issued an executive order imposing a 90-day freeze on all foreign aid to assess alignment with his “America First” agenda. This move set the stage for dismantling USAID, which Trump—backed by adviser Elon Musk—labeled a “criminal organization” plagued by waste and ideological bias.

The administration justified USAID’s closure by alleging mismanagement, claiming funds were misused on diversity and gender-related initiatives. Despite representing less than 1% of the federal budget, foreign aid was seen as inefficient. By late January, USAID’s online presence was erased, and senior officials were placed on leave. By February 23, nearly all USAID staff were placed on administrative leave, with plans to cut 1,600 positions.

Following a six-week review, on March 10, Secretary of State Marco Rubio announced the cancellation of 83% of USAID programs, terminating 5,200 contracts deemed misaligned with U.S. interests, and did not mention which programs were being cancelled. The remaining programs will shift to the State Department.

Ending Aid: Human Cost

Global Impact

The abrupt funding freeze forced major NGOs, including Mercy Corps and the International Rescue Committee, to shut down healthcare services and lay off staff. Doctors of the World Turkey dismissed 280 workers and closed 12 field hospitals in Syria. Confusing waiver conditions further destabilized aid operations.

Essential healthcare programs—including maternal and child health, HIV/AIDS treatment, and malaria prevention—were severely cut. The World Food Program shut down its Southern Africa office, disrupting food aid for millions.

In a series of leaked memos, Nicholas Enrich, USAID’s acting assistant administrator for global health, warned of catastrophic consequences if aid cuts persist. Projections include 1 million starving children losing nutrition access, a 39% rise in malaria deaths, soaring tuberculosis rates, and unchecked outbreaks of Ebola and avian flu. Enrich stressed that the cuts threaten global stability and U.S. national security, urging immediate restoration of funding.

Local Impact

The termination of USAID funding devastated Myanmar’s most vulnerable, who are in dire need of humanitarian aid due to the civil war. Scholarships were revoked, democracy and human rights programs collapsed, and anti-traffickingand environmental projects ceased. Clinics along the Thai-Myanmar border permanently shut down, leaving refugees without medical care. And starting next month, over one million people in Myanmar, including 100,000 displaced Rohingya, will lose lifesaving food aid from WFP due to a $60 million funding shortfall, worsening hunger amid escalating conflict.

Since the 2021 coup, the number of Myanmar refugees in Thailand’s border camps has surged by 31%, reaching over 100,000 as of December 2024, according to The Border Consortium. And these refugees and displaced persons are struggling to access medical care, with shortages of supplies like oxygen leading to preventable deaths. The International Rescue Committee, which supports 80,000 refugees, and the Thai Border Consortium, which relied on 60% of its funding from the U.S., faced severe setbacks. With nearly 20 million people in Myanmar projected to require aid in 2025, the sudden loss of U.S. assistance deepened the crisis.

The real human cost is stark. Wah K’Ler Paw, a 30-year-old refugee in Thailand’s Mae La camp, lost dialysis access when funding was cut and passed away on February 16th. Over 400 Burmese students saw their scholarships revoked, forcing them to reconsider their academic futures. Exiled journalist Su, who ran Than Lwin Khet News, lost all funding, threatening Myanmar’s independent press. The abrupt aid halt has worsened economic hardship and eroded trust in international commitments, leaving millions at risk.

Responses and Controversy

The dismantling of USAID sparked widespread condemnation from officials, humanitarian groups, and international partners. Senior USAID officials warnedthat halting funds would jeopardize lifesaving aid. While some acknowledged the need for reform, they argued that shutting down USAID would weaken global humanitarian efforts and U.S. influence.

Since its inception, USAID has straddled the line between development and U.S. strategic interests, facing criticism over its effectiveness and political motivations. The Trump administration, with Elon Musk’s backing, accused it of pushing a “radical-left agenda,” citing diversity and climate programs. Supporters argued its closure weakens U.S. influence, benefiting China and Russia. With USAID dismantled, China is expanding its soft power, filling aid gaps with infrastructure investments, signaling a geopolitical shift in global development.

Canada, the U.K., Australia, and the EU were urged to increase funding, while Thailand pledged support for displaced refugees. Myanmar’s National Unity Government (NUG) expressed shock, reaffirming their commitment to the revolution despite losing U.S. support. Legal challenges against the aid freeze temporarily lifted the funding halt, but a Supreme Court ruling later complicated relief efforts, leaving humanitarian groups struggling to operate.

Conclusion

The abrupt dismantling of USAID has left millions without essential aid, disrupting global healthcare, education, and human rights efforts. The loss of funding risks a resurgence of preventable diseases deepens economic instability and weakens democratic institutions while paving the way for increased Chinese and Russian influence. In response, donor nations must step up, ensuring aid continuity and prioritizing local capacity building. Congressional oversight and reforms may be necessary to restore credibility.

Beyond policy and geopolitics, this crisis underscores a fundamental truth: the most vulnerable suffer when power is placed in the hands of leaders who prioritize protectionism over humanitarianism. The erosion of decades of humanitarian progress is a stark reminder of what happens when humanity is sacrificed for political gain. In these uncertain times, those who uphold humanity and democracy must stand united, dedicating their efforts to advancing human rights, strengthening democratic principles, and embracing collective responsibility as the path forward.

• About the author: Dr. Htet Khaing Min, a medical doctor, is a Junior Research Fellow at the Sustainability Lab of the Shwetaungthagathu Reform Initiative Centre (SRIc). He recently led Remote Health Projects, focusing on Community Health Worker programs in the border regions of Naga and Karen States.
• Source: This article was published by The Sabai Times