Curtain finally falls on USAID
The US foreign aid agency formally closed down on Tuesday, with President Donald Trump's administration trumpeting the end of the "charity-based model" despite predictions that millions of lives will be lost.
Founded in 1961 as John F Kennedy sought to leverage aid to win over the developing world in the Cold War, the US Agency for International Development (USAID) has now been incorporated into the State Department — after Secretary of State Marco Rubio slashed 85 per cent of its programming.
In a farewell to remaining staff on Monday, former presidents George W Bush and Barack Obama — as well as U2 frontman Bono — saluted their work and said it was still needed.
Bush pointed to PEPFAR, the massive US effort to fight HIV/AIDS that he considers one of the top achievements of his 2001-2009 Republican presidency.
"This program shows a fundamental question facing our country — is it in our nation's interest that 25 million people who would have died now live? I think it is," Bush said in a video message seen by AFP.
Obama, who like Bush has been sparing in openly criticizing Trump, said that ending USAID was "inexplicable" and "will go down as a colossal mistake."
"Gutting USAID is a travesty and it is a tragedy because it's some of the most important work happening anywhere in the world," the Democrat said.
Rubio painted a drastically different picture of USAID, which was an early target of a sweeping government cost-cutting drive led for Trump by billionaire Elon Musk.
Rubio said that USAID's "charity-based model" fueled "addiction" by developing nations' leaders and that trade was more effective.
"Beyond creating a globe-spanning NGO industrial complex at taxpayer expense, USAID has little to show since the end of the Cold War," Rubio wrote in an essay.
He also complained that many recipients of US aid do not vote with the United States at the United Nations and that rival China often enjoys higher favorability among the public.
A senior State Department official, speaking on condition of anonymity, said that The Lancet study relied on "incorrect assumptions" and said the United States will continue aid but in a "more efficient" way.
He said that PEPFAR will remain, with a priority on stopping HIV transmission from mothers to children.
But he acknowledged the United States was no longer funding PrEP medication, which significantly reduces the rate of HIV transmission and has been encouraged by high-risk communities.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
5 hours ago
- Express Tribune
Quad ministers condemn Pahalgam attack without naming Pakistan
Indian External Affairs Minister Subrahmanyam Jaishankar speaks as Australia's Foreign Minister Penny Wong, Japanese Foreign Minister Takeshi Iwaya and U.S. Secretary of State Marco Rubio stand together at the start of their meeting of the Indo-Pacific Quad at the State Department in Washington, D.C., U.S., July 1, 2025. REUTERS/Kevin Lamarque Listen to article The Quad grouping of the United States, India, Japan and Australia called on Tuesday for the perpetrators of an Pahalgam attack that killed 26 in India Illegally Occupied Jammu and Kashmir (IIOJK) to be brought to justice without delay. The April 22 attack sparked heavy fighting between nuclear-armed Pakistan and India in the latest escalation of a decades-old rivalry as India blamed it on Pakistan, which denied responsibility while calling for a neutral investigation. The US State Department issued, a joint statement by the foreign ministers of the grouping, who met in Washington, but stopped short of naming Pakistan or blaming Islamabad for the attack. India, till date, has not provided any evidence of Pakistan's alleged involvement in the attack. "The Quad unequivocally condemns all acts of terrorism and violent extremism in all its forms and manifestations, including cross-border terrorism," the ministers said in the statement. They called on all members of the United Nations to cooperate actively with "all relevant authorities" in delivering justice to the "perpetrators, organisers, and financiers of this reprehensible act", without any delay. Read: FO slams Modi's 'unfounded' allegations on Pahalgam attack On May 7, the Indian Air Force carried out an unprovoked attack on civilian targets in Pakistan and alleged that New Delhi had targeted "terrorist infrastructure". The strikes killed multiple Pakistani civilians and injure many more. The Pakistan Air Force (PAF), scrambled to counter the Indian aerial threat, shot down six IAF fighter aircraft including three French-made Rafales. The strikes sett off an exchange of attacks between the two countries by fighter jets, missiles, drones and artillery that killed dozens until a ceasefire on May 10. The ceasefire was first announced by US President Donald Trump on social media after Washington held talks with both sides, but India has differed with Trump's claims that it resulted from his intervention and threats to sever trade talks. India's position has been that New Delhi and Islamabad must resolve their problems directly and with no outside involvement. On Monday, India's foreign minister, Subrahmanyam Jaishankar, restated its position that trade was not a factor in the ceasefire. "Relationships will never be free of issues," he said, referring to the United States, adding, "What matters is the ability to deal with it and to keep that trend going in the positive direction."
Express Tribune
10 hours ago
- Express Tribune
Curtain finally falls on USAID
Listen to article The US foreign aid agency formally closed down on Tuesday, with President Donald Trump's administration trumpeting the end of the "charity-based model" despite predictions that millions of lives will be lost. Founded in 1961 as John F Kennedy sought to leverage aid to win over the developing world in the Cold War, the US Agency for International Development (USAID) has now been incorporated into the State Department — after Secretary of State Marco Rubio slashed 85 per cent of its programming. In a farewell to remaining staff on Monday, former presidents George W Bush and Barack Obama — as well as U2 frontman Bono — saluted their work and said it was still needed. Bush pointed to PEPFAR, the massive US effort to fight HIV/AIDS that he considers one of the top achievements of his 2001-2009 Republican presidency. "This program shows a fundamental question facing our country — is it in our nation's interest that 25 million people who would have died now live? I think it is," Bush said in a video message seen by AFP. Obama, who like Bush has been sparing in openly criticizing Trump, said that ending USAID was "inexplicable" and "will go down as a colossal mistake." "Gutting USAID is a travesty and it is a tragedy because it's some of the most important work happening anywhere in the world," the Democrat said. Rubio painted a drastically different picture of USAID, which was an early target of a sweeping government cost-cutting drive led for Trump by billionaire Elon Musk. Rubio said that USAID's "charity-based model" fueled "addiction" by developing nations' leaders and that trade was more effective. "Beyond creating a globe-spanning NGO industrial complex at taxpayer expense, USAID has little to show since the end of the Cold War," Rubio wrote in an essay. He also complained that many recipients of US aid do not vote with the United States at the United Nations and that rival China often enjoys higher favorability among the public. A senior State Department official, speaking on condition of anonymity, said that The Lancet study relied on "incorrect assumptions" and said the United States will continue aid but in a "more efficient" way. He said that PEPFAR will remain, with a priority on stopping HIV transmission from mothers to children. But he acknowledged the United States was no longer funding PrEP medication, which significantly reduces the rate of HIV transmission and has been encouraged by high-risk communities.
Business Recorder
12 hours ago
- Business Recorder
S&P 500, Nasdaq edge down as Tesla slides
NEW YORK: The S&P 500 and the Nasdaq dropped from record highs on Tuesday, as Tesla shares were hit by a renewed spat between CEO Elon Musk and President Donald Trump, while better-than-expected economic data backed the US central bank's patient stance on rate cuts. Tesla dropped 5% after Trump threatened to cut off the billions of dollars in subsidies that Musk's companies get from the federal government, after Musk revived his criticism of Trump's wide-ranging tax-cut and spending bill. The Republican-controlled US Senate voted 51-50 to pass the bill that enshrines many of Trump's top priorities into law while adding $3.3 trillion to the national debt. The bill, now headed back to the House for final approval, aims to partly cover the tax-reduction costs by cutting Medicaid and some food assistance programs for low-income Americans. The blue-chip Dow got a boost from healthcare stocks such as UnitedHealth and Amgen, and was just about 600 points away from its all-time high touched in December. Data showed US job openings increased unexpectedly in May, suggesting labor market resilience despite trade and economic uncertainties. US Treasuries fell in response, pushing the 2-year yield to a near one-week high. Earlier in the day, Federal Reserve Chair Jerome Powell reiterated the US central bank plans to 'wait and learn more' about the impact of tariffs on inflation before lowering rates, again setting aside Trump's demands for immediate and deep rate cuts. The S&P 500 and the Nasdaq Composite posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts helped markets recover from concerns about chaotic US trade policies and geopolitical tensions. Market focus now shifts to Thursday's nonfarm payrolls report, which could help recalibrate bets for a rate cut as soon as July. Money markets are pricing in a 21.2% likelihood for a July rate cut and see about 64 basis points worth of cuts by the end of this year, per LSEG data. At 11:43 a.m. ET, the Dow Jones Industrial Average rose 394.56 points, or 0.89%, to 44,489.33, the S&P 500 lost 18.03 points, or 0.29%, to 6,186.92 and the Nasdaq Composite lost 212.08 points, or 1.04%, to 20,157.66. Technology stocks, down 1.4%, led the decline among the major S&P sectors, while material stocks climbed 2.4% and the healthcare sector added 2%. Advancing issues outnumbered decliners by a 1.85-to-1 ratio on the NYSE and a 1.11-to-1 ratio on the Nasdaq. The S&P 500 posted 18 new 52-week highs and no new lows while the Nasdaq Composite recorded 63 new highs and 53 new lows.
