USAID at Risk of Shutdown: Impact on Lebanon

Elon Musk stated on Monday that President Donald Trump confirmed his intention to shut down the United States Agency for International Development (USAID).

“I discussed USAID in detail with (the president), and he agreed that we should shut it down,” Musk said during a conversation on X Spaces early on Monday morning.

The announcement comes after several days of speculation about the agency’s future, following a funding freeze and the dismissal of dozens of employees.

Donald Trump had already imposed a 90-day suspension on nearly all US foreign aid, pending a review by his administration. “No U.S. foreign assistance shall be distributed in any manner that is not fully aligned with the foreign policy of the President of the United States,” states the executive order signed by Trump on January 20, the day of his inauguration.

According to media reports, the Trump administration is seeking to strip USAID of its independence as a government agency and place it under the authority of the State Department.

Since Saturday, the agency’s official website has displayed the message, “The server's IP address could not be found.” The website’s inaccessibility follows the removal of signs bearing the agency’s official seal on Friday, according to Reuters— an indication that the merger with the State Department is underway.

Speaking to reporters on Sunday evening, before the conversation on X Spaces, Trump said that USAID “has been run by a bunch of lunatic radicals. We're getting rid of them, and then we'll decide its future.”

USAID distributes billions of dollars annually in humanitarian aid and development funding worldwide. Its current budget stands at $42.8 billion.

In Lebanon, more than $1.3 billion has been disbursed to fund broad aid programs covering sectors such as education, agriculture and water.

What is the situation in Lebanon following the presidential decree suspending foreign aid?

A Sudden Halt to All Programs

According to a source close to USAID, speaking to This is Beirut, “all development programs, across all sectors, have been put on hold since January 24.” This abrupt suspension of services has had an immediate impact on thousands of beneficiaries, including students whose scholarships were suddenly suspended.

Today, the responsibility lies with the universities, which must determine the fate of students supported by USAID.

“No directives have been issued regarding the operation of the institution or the programs it funds. For now, beneficiaries have been informed of the suspension of aid until further notice, pending additional details,” according to the same source.

Since 2000, USAID has awarded approximately 10,000 scholarships, and to date, around 87,000 students have benefited from school renovations under its basic education programs.

At the higher education level, more than 1,300 university students have received funding from the US agency since 2010. This information comes from the official website of the US Embassy in Beirut, as the agency's website is currently out of service.

“USAID plays an important role in promoting good governance and economic opportunities for low-income Lebanese citizens,” reads the US Embassy's website.

On October 1, 2024, USAID launched a five-year $10 million project aimed at strengthening and reviving local agriculture.

Over the past decade, USAID has invested more than $80 million in Lebanon's agricultural sector. This support has helped increase the incomes of over 40,000 rural households, mobilize more than $40 million in private sector investments, generate over $170 million in sales at the business and farm level, provide business development services to more than 35,000 businesses and agricultural households, and benefit over 19,000 households through food security programs.

“Even previously placed orders for equipment can no longer be paid for or received,” according to the source. “USAID employees are no longer authorized to take any action. They have been asked to stay home.”

Trump has set a deadline of 90 days to decide the agency's future, with a final decision expected by April 20. Awaiting the final verdict...

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