President John Dramani Mahama has asked Finance Minister, Dr. Cassiel Ato Forson, to take immediate action to address the financial gap to be caused by the suspension of USAID’s international funding program.
President Johnn Mahama expressed deep concern about an estimated $156 million funding shortfall. Specifically, he pointed to a projected $78.2 million deficit, which could severely impact critical national programs.
“President John Dramani Mahama has directed the Minister for Finance, Hon. Dr. Cassiel Ato Forson, to urgently take steps to address the funding gap created by the suspension of USAID’s international funding program,” the statement said. “The President is particularly concerned about the potential $78.2 million shortfall that could hinder essential programs like malaria prevention, maternal and child health, family planning, reproductive health, nutrition, and the fight against HIV/AIDS, including antiretroviral drugs, testing, and prevention efforts.”
This was contained in a statement released on Tuesday, February 11, 2025 signed by Felix Kwakye Ofosu the President’s Spokesperson,
What is USAID
USAID (United States Agency for International Development) plays a crucial role in supporting humanitarian aid worldwide. However, the agency’s future is now uncertain as the Trump administration pushes for its merger with the U.S. Department of State. This move has led to staff lockouts, and many employees are expected to be put on leave following President Trump’s return to office. USAID has already begun recalling staff from its global missions.
Trump has long advocated for aligning foreign aid with his “America First” policy and has expressed dissatisfaction with USAID’s spending, going so far as to state that the agency’s expenditures are “totally unexplainable” and even calling for its closure on Truth Social.
Tech billionaire Elon Musk, who is working with the White House to cut federal spending, has also criticized USAID, labelling it a “criminal organization.” However, these claims remain unsupported by evidence, and any efforts to dismantle USAID are expected to face legal challenges.
USAID’s Role and Funding
Established in the 1960s, USAID administers U.S. government humanitarian aid programs in over 60 countries. The agency employs roughly 10,000 people, with two-thirds stationed overseas. USAID’s work spans a wide range of humanitarian efforts, from food aid in famine-stricken regions to health programs such as polio vaccination and pandemic prevention.
In 2023, the U.S. allocated $68 billion to international aid, with USAID receiving over half of that funding—around $40 billion. This makes up approximately 0.6% of the total U.S. government spending, which in 2023 reached $6.75 trillion.
The largest portion of USAID’s budget goes toward humanitarian projects in Asia, sub-Saharan Africa, and Europe, including Ukraine. The U.S. remains the world’s leading contributor to international development aid, outspending all other nations.
Trump’s Criticism and the Future of USAID
Trump has repeatedly criticized foreign aid as inefficient, particularly targeting USAID’s expenditures. He has pointed to specific programs he deems wasteful, such as a $1.5 million grant to an LGBTQ group in Serbia and $2.5 million for electric vehicles in Vietnam.
Critics of the administration argue that such examples have been misrepresented. For instance, a $6 million tourism project in Egypt, which began in 2019, supports vital infrastructure projects like water, education, and transportation in North Sinai.
Upon returning to office, Trump issued an executive order freezing most international aid for 90 days to conduct a review, though waivers were later granted for humanitarian programs. This freeze has disrupted international development efforts and critical services.
Despite the controversy surrounding USAID’s spending, many claim the administration has spread misinformation. For example, Musk promoted a debunked story claiming that USAID funded celebrity visits to Ukraine. As the administration moves forward with plans to restructure USAID, the future of U.S. international aid remains uncertain, with significant impacts on global humanitarian programs and essential services.
