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What USAID does, and the impact of Trump’s cuts on foreign aid [1]

['Oxfam America']

Date: 2025-07

U.S. foreign aid plays a critical role in tackling poverty, hunger, and inequality worldwide, which is why the Trump administration’s recent cuts were met with public outrage and pushback from development and humanitarian organizations, including Oxfam.

Despite widespread public support for U.S.-funded foreign aid, the Trump administration has shut down the U.S. Agency for International Development (USAID) , which funded the majority of U.S. humanitarian and development assistance worldwide to people in some of the worst crises. The effect of these cuts on people is dire: At least 23 million children stand to lose access to education, and as many as 95 million people would lose access to basic healthcare, potentially leading to more than 3 million preventable deaths per year.

Oxfam has responded to the closure of USAID by joining other humanitarian groups in a lawsuit to defend USAID and U.S. foreign assistance, which is ongoing.

So what does the Trump administration's decision to eliminate so much foreign aid mean, what impact could it have around the world, and why is it critical for the government to reverse this decision? Oxfam answers all of these questions and more.

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[1] Url: https://www.oxfamamerica.org/explore/issues/making-foreign-aid-work/what-do-trumps-proposed-foreign-aid-cuts-mean/

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