President Donald Trump’s drastic cuts to foreign aid have sparked a seismic shift in how America engages with developing nations. This isn’t just a budget trim; it’s a complete rethinking of a broken system.
As reported by The Daily Caller, Trump’s administration dismantled the United States Agency for International Development (USAID) in 2025 through executive actions and funding freezes, slashing its programs by 83 percent from over 6,000 initiatives worth $120 billion in taxpayer money.
Even former USAID administrator Rajiv Shah, who served under President Obama, admitted in The New York Times that Trump’s cuts could foster self-reliance in recipient countries. Shah’s own words betray a reluctant truth: traditional aid often bred dependency rather than progress.
Shah’s admission in the NYT that “traditional foreign aid... fostered dependency and inefficiency” is a rare moment of clarity from the establishment. But let’s not pretend this is just a noble epiphany; decades of taxpayer-funded handouts have propped up corrupt regimes while doing little for actual development.
The left predictably countered with grim forecasts, claiming Trump’s cuts could lead to 14 million deaths by 2030 if aid isn’t restored. Such scare tactics ignore the reality that endless aid often enriches elites rather than saves lives, and it’s time for a model that demands accountability.
Interestingly, the President of Zambia praised the USAID dissolution, noting it forces nations to stand on their own feet. This isn’t doom and gloom; it’s a long-overdue wake-up call for local innovation.
Before USAID’s dissolution in 2025, Trump tapped Ben Black, son of billionaire Leon Black, to head the U.S. International Development Finance Corporation (DFC), a lesser-known agency created during his first term. Unlike USAID’s scattershot approach, DFC focuses on private-sector-led investments in strategic areas like energy and infrastructure.
Headquartered in Washington, D.C., DFC operates independently with a nine-member board, now including key figures like Secretary of State Marco Rubio, who holds two seats in an acting capacity, alongside Black as CEO. This structure signals a shift toward aligning foreign investments with American interests.
Trump’s vision for DFC, reportedly inspired by a Substack post, includes investing in ports and mines in places like Greenland, a region he’s openly eyed for acquisition. Black has argued that partnering with American companies in these ventures boosts access to natural resources, a far cry from USAID’s endless charity.
The DFC’s mission isn’t just about economics; it’s a direct challenge to China’s Belt and Road Initiative, which expands Beijing’s influence through predatory loans. DFC projects, like upgrading the Subic Bay Shipyard in the Philippines or funding a submarine fiber-optic cable from Singapore to the U.S., aim to secure critical regions against Chinese dominance.
Other initiatives, such as infrastructure support in India, strengthen key allies while prioritizing U.S. national security over vague humanitarian goals. This isn’t aid for the sake of goodwill; it’s a calculated push for American sovereignty.
Critics, including those recalling Biden-era DFC misuse for projects like fish farms in Africa or windmills in Turkey, warn of potential fraud. But under Trump’s watch, the focus on strategic sectors offers a chance to correct past missteps.
Trump’s pivot from USAID to DFC isn’t just a policy tweak; it’s a rejection of globalist entanglements that drain American wallets for little return. If Shah wants private investments to fill the gap, let him fundraise, while Trump builds a framework that actually serves U.S. interests.
The real challenge lies in keeping DFC on track, ensuring it doesn’t morph into another bureaucratic slush fund. With leaders like Rubio and Black at the helm, there’s potential to turn foreign engagement into a tool for prosperity, not a burden.
Ultimately, this shift forces a reckoning for nations long reliant on American largesse, while positioning the U.S. as a savvy competitor on the world stage. It’s not about abandoning the world; it’s about playing to win.
