The end of foreign aid as we know it

Bryant Harris, Robbie Gramer, and Emily Tamkin write: President Donald Trump’s vow to put “America first” includes a plan to drastically cut assistance to developing countries and merge the State Department with USAID, according to an internal budget document and sources.

The administration’s March budget proposal vowed to slash aid to developing countries by over one-third, but contained few details. According to a detailed 15-page State Department budget document obtained by Foreign Policy, the overhaul also includes rechanneling funding from development assistance into a program that is tied closely to national security objectives.

The document details how the Trump administration’s plans to reduce direct foreign assistance would take place in fiscal year 2018.

Acting USAID Administrator Wade Warren told employees at a recent staff meeting that administration officials are considering folding the agency into the State Department as part of a review mandated by President Trump’s March 13 executive order on streamlining the executive branch, according to a source within USAID. The order instructs the head of each agency to submit a plan to the Office of Management and Budget director, Mick Mulvaney, “to reorganize the agency, if appropriate, in order to improve the efficiency, effectiveness, and accountability of that agency.”

While the order appears to give USAID’s administrator some discretion in the reorganization plan, the White House’s 2018 budget proposal points to a preference for consolidating the two entities, stating “the need for State and USAID to pursue greater efficiencies through reorganization and consolidation in order to enable effective diplomacy and development.”

Such a move would not be unprecedented. In 1999, the U.S. Information Agency, which funded information and cultural programs abroad, was closed down and many of its programs folded in the State Department. But shutting down, or even just scaling back, an agency dedicated to issues like disease prevention and food security could prove far more polarizing.

“That will end the technical expertise of USAID, and in my view, it will be an unmitigated disaster for the longer term,” said Andrew Natsios, the former USAID Administrator under President George W. Bush. “I predict we will pay the price. We will pay the price for the poorly thought out and ill-considered organization changes that we’re making, and cuts in spending as well.” [Continue reading…]

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