American Soft Power in Crisis?

President Trump has closed USAID, and Terry Li examines the possible future effects on US foreign policy and soft power

Credit: Shutterstock.com/Mohammed Zonaid8

Foreign Aid Crisis

President Trump has launched many controversial executive orders since his inauguration, relating to immigration, climate change, oil exploration, etc. On Jan. 20, 2025, he signed an Executive Order calling for a 90-day pause on new foreign aid programs. The aim is to ensure all U.S. foreign aid programs are consistent with U.S. foreign policy. On Jan. 24, Secretary of State Marco Rubio issued a directive that went even farther, effectively freezing operations at the United States Agency for International Development (USAID), the U.S. government's lead provider of nonmilitary foreign aid. This directive halted the creation of new USAID projects, and discontinued ongoing work. On Jan. 29, Secretary of State Marco Rubio approved a waiver of the pause for life-saving humanitarian assistance during the review period. Nevertheless,, 90 percent of the foreign aid programs were halted and under review. This shocking order was unprecedented and greatly impacted U.S. domestic and foreign policy.

Triggers of the crises

USAID was founded by President John F. Kennedy in the Foreign Assistance Act of 1961. For more than sixty years, USAID has provided assistance to developing countries across multiple sectors, responded to natural and man-made disasters with humanitarian assistance, and contributed to U.S. political objectives in post-conflict and strategically important settings.

However, President Trump has always been a critic of this organization. On he posted toTruth Social: “The way in which the money has been spent, so much of it fraudulently, is totally unexplainable. The corruption is at levels rarely seen before. Close it down!”

Ostensibly, halting work at USAID is part of an effort to cut waste and boost efficiency.

However, Trump’s attacks on aid are not about cutting waste or making the government more efficient; they’re about using blunt force to fulfill Project 2025’s pledges to put an end to U.S. foreign assistance spending in service of the President’s agenda. “Not when it comes to fraud. If there’s fraud, these people are lunatics,” Trump said when asked about his capacity to exact major changes to USAID. “We just want to do the right thing. It’s something that should have been done a long time ago.”

With the Trump’s reelection, many USAID staff and international development experts anticipated directional shifts, but were surprised by the head-on effort to abolish the agency. The sudden halt on foreign aid instigate intensive debate in the development field, posing enormous impact both in domestic and abroad.

Domestic Impact

By Jan 27th, about 60 senior employees received an email putting them on administrative leave and they were escorted out of the building.. “Then I just heard sobbing,” said Kristina Drye, 31, a USAID speech writer. Thousands more of the 14,000 worldwide workforce were then cut. Drye continued: “One day a person would be sitting beside you and the next day they were gone.”

President Trump's executive order has directly led to a cut of staff worldwide who are working in the U.S. foreign aid industry, leaving fewer than 300 workers out of thousands.

Georgetown Alumni have also been affected by this chaotic moment And the Georgetown Community is working hard to support those alumni.

Professor Steven Radelet, the Donald F. McHenry Chair of the Global Human Development Program commented on this current issue. Professor Radelet used to serve as the chief economist in the USAID and had a plethora of experience in the development field worldwide.

“President Trump’s attitude and comments on the USAID, or to the U.S. foreign aid in general is very reprehensible. Nevertheless, a thorough revaluation of the foreign aid program is necessary, the decision to press the stop button for 90 days is extremely irresponsible. Neither the public sector nor the private sector will take such actions.”

Global Impact

Foreign aid has always been a vital demonstration of American soft power worldwide. The executive order threatened U.S. diplomatic and defense interests around the world in many ways.

For example, USAID gave more than $38 billion in non-military aid to Ukraine between 2022 and 2024, ensuring its economy and institutions will remain resilient after the war. The funds provided are monitored in real-time by a Special Inspector General dedicated to Ukraine.

In the Middle East, USAID supports counterterrorism efforts: in Syria, USAID programs contribute to the containment of the self-proclaimed Islamic State, also known as ISIS. In Lebanon, assistance advances the long-called for rebuilding of a civilian government without Hezbollah. In war-ravaged Gaza, U.S. aid addresses immediate humanitarian needs and enhances prospects for a long-term cease-fire.

The halt of the foreign aid also further cedes American global leadership to China. While Washington reassesses its commitments, China is pressing ahead with long-term strategic investments that deepen its economic and political foothold. For instance, between 2013 and 2021, Beijing invested $679 billion in global infrastructure—nearly nine times the $76 billion the United States provided during the same period. Many of China’s investments in global health, climate, disaster relief, and science benefit people the world over, Americans included. And in these areas, the United States should seek to collaborate, not retreat. This ongoing foreign aid crisis will be a determinant factor for the geopolitical order in the future.