United States Agency for International Development

The United States Agency for International Development (USAID) is a de jure independent agency of the United States. Until 2025, it was the world's largest agency for foreign aid.

USAID was established in 1961 to compete with the Soviet Union during the Cold War through the use of soft power. In 2025, the Trump administration ended 83% of overall projects and folded remaining USAID programs into the State Department. However, USAID had been reorganized by the United States Congress as an independent agency in 1998 and can only be closed down by an act of Congress. As such, it legally exists. In addition, budget requests, the Office of Inspector General, and court filings have continued to acknowledge USAID's legal existence.

From 2001 to 2024, USAID had an average budget of $23 billion a year and missions in over 100 countries in areas as diverse as education, global health, environmental protection, and democratic governance. In the twenty years from 2001 to 2021, USAID saved a yearly estimated range of between 4.1 and 4.7 million lives, with a yearly estimated subset of between 1.2 and 1.7 million children under five saved.

In August 1953, President Eisenhower reorganized country offices as "United States Operations Missions" (USOMs). Congress passed the Foreign Assistance Act on September 4, 1961, which reorganized U.S. foreign assistance programs and mandated the creation of an agency to administer economic aid. The goal of this agency was to counter Soviet influence during the Cold War and to advance U.S. soft power through socioeconomic development. USAID was subsequently established by the executive order of President John F. Kennedy, who sought to unite several existing foreign assistance organizations and programs under one agency. After this transition, USOMs continued to exist for a time as an element of USAID. USAID by law is placed under "the direct authority and policy guidance of the Secretary of State".

In 1998, Congress established USAID as a functionally independent executive agency with the Foreign Affairs Reform and Restructuring Act, which gave the President 60 days to abolish or reorganize USAID. President Bill Clinton chose the second option and reorganized USAID, which retained its independence from the U.S. Department of State.

USAID's predecessor agency was already substantial, with 6,400 U.S. staff in developing-country field missions in 1961. Except for the peak years of the Vietnam War, 1965–70, that was more U.S. field staff than USAID would have in the future, and triple the number USAID has had in field missions in the years since 2000.

After his inauguration as president on January 20, 1961, John F. Kennedy created the Peace Corps by Executive Order on March 1, 1961. On March 22, he sent a special message to Congress on foreign aid, asserting that the 1960s should be a "Decade of Development" and proposing to unify U.S. development assistance administration into a single agency. He sent a proposed "Act for International Development" to Congress in May and the resulting "Foreign Assistance Act" was approved in September, repealing the Mutual Security Act. In November, Kennedy signed the act and issued an Executive Order tasking the Secretary of State to create, within the State Department, the "Agency for International Development" (or A.I.D.: subsequently re-branded as USAID), as the successor to both ICA and the Development Loan Fund. With these actions, the U.S. created a permanent agency working with administrative autonomy under the policy guidance of the State Department to implement, through resident field missions, a global program of both technical and financial development assistance for low-income countries.

In the 21 years from 2001 to 2021 inclusive, USAID funding saved an estimated 92 million persons, with a range between 86 and 98 million. This is an estimated range of between 4.1 and 4.7 million lives saved per year. Among these lives saved were an estimated 30 million children younger than five, with a range between 26 and 35 million. This is an estimated range of between 1.2 and 1.7 million per year in the subset of children under five saved.