USAID dismantling: What it could mean for Haiti

“We’re shutting it down.” Those were the stark words of Elon Musk, director of the Department of Government Efficiency and CEO of Tesla, referring to the U.S. Agency for International Development (USAID), in an audio recording of himself he posted on his social platform X Monday evening.

“What we have is just a ball of worms. You’ve got to basically get rid of the whole thing. It’s beyond repair,” Musk said. 

The Tesla CEO’s comments, referencing plans with President Donald Trump, initially suggested a complete shutdown of USAID. However, emerging details indicate a shift toward dismantling the independently operated agency and attempting to place it under direct federal control.

Just hours before thousands of USAID employees were set to be placed on leave at midnight on Friday, Feb. 7, a federal court issued a temporary restraining order partially blocking President Donald Trump’s plan to overhaul the agency. The order prevents 2,200 employees from being placed on administrative leave, but the majority of USAID’s roughly 10,000 workers remain in limbo. The decision followed an emergency petition filed by agency employees seeking to halt the restructuring, which, under Trump’s plan, would have left only a few hundred active-duty staff members while placing most of the workforce on leave.

Jake Johnston, director of international research at the Center for Economic and Policy Research and author of “Aid State: Elite Panic, Disaster Capitalism, and the Battle to Control Haiti,” told The Haitian Times that due to USAID’s operational structure, some projects are expected to pause.

“It’s not like you’re an NGO just sitting on a pile of cash in Haiti. This is a process, and if processes are halted, there is no more funding,” Johnston said.

USAID distributes aid primarily through contracts and grants, funding multi-year programs rather than providing direct cash assistance. In Haiti, the agency has committed over $300 million for the 2024 fiscal year, but these funds are disbursed in stages and require approval at multiple levels. The recent 90-day freeze has effectively halted this process, leaving the majority of funds in pending commitments. While some organizations may apply for waivers to continue operations, many projects rely on a steady flow of funding, making disruptions inevitable. 

Additionally, much of USAID’s aid is funneled through U.S.-based contractors and international NGOs, meaning only a fraction reaches local Haitian organizations directly. The freeze has further complicated an already bureaucratic system, creating uncertainty for aid workers and recipients alike.

What is USAID, and where does it stand with Haiti today?

USAID was established in the early 1960s during John F. Kennedy’s presidency to administer humanitarian aid on behalf of the U.S. government.

“It was a fight for control [after World War II], and USAID has always been part of that effort,” said Johnston. He notes that in Haiti, the agency has pushed for open markets, privatization, and smaller government as part of global economic development policies.

Haiti has long been one of USAID’s largest recipients, with a shutdown likely to have far-reaching impacts. Since the 2024 fiscal year began in October 2023, the agency has allocated well over $300 million in contracts and grants to Haiti, with more than 60% funding humanitarian aid and health projects.

Secretary of State Marco Rubio gave reporters a more optimistic take on Monday as plans to dismantle the agency swirled. “This is not about ending USAID,” Rubio said. Rubio announced the State Department will take over its operations, with Rubio acting as director. 

Republicans supporting this decision say that foreign assistance and aid needs to better align with U.S. interests. Senator Ted Cruz said on ABC news “there is an appropriate role for aid, when it is advancing American interest, when it’s advancing and helping our allies,” but not when advancing the interests of the United States “enemies.”

“There are no clear rules or procedures,” Johnston says, adding that Haiti’s health sector is likely to be hit the hardest. “Organizations don’t know if their funding is available for a waiver or not or what the process is to obtain resources. It’s creating a lot of confusion. But many programs in Haiti may eventually continue.”

Democrats have criticized the dismantling of USAID. Senator Chuck Schumer (NY-D) called Trump’s move “not only illegal” but also a threat to “countless lives” and U.S. national security, in a statement to The Haitian Times. Cutting humanitarian aid to Haiti is “cruel” and strengthens China and Russia’s influence, he warned. Schumer also condemned the loss of security assistance, crucial for combating gang violence in Port-au-Prince. 

“In Congress and the courts, Democrats will fight these dangerous steps and stand with our friends in Haiti,” he said.

Firmin Backer, president of the Haiti Renewal Alliance, a nonprofit focused on humanitarian aid, remains cautiously optimistic. “U.S. national interests don’t necessarily conflict with Haiti’s interests, particularly regarding immigration. Haitians don’t want to leave their country,” Backer said.

A CHIP50 survey conducted with The Haitian Times in October 2024 shows that Americans tend to support aid to Haiti. Among the general public, 51% somewhat or strongly support U.S. aid to Haiti, while 62% of Haitian Americans approve of continued or enhanced assistance.

A potential turning point for Haiti

While uncertainty looms over the humanitarian sector, some see the USAID overhaul as an opportunity for Haiti to reassess its reliance on foreign aid.

“Just because you’re receiving aid this year doesn’t mean you’ll get it next year, and you never know how much you’ll receive,” Backer said.

Although USAID has funded impactful projects globally, critics argue that its structure prioritizes U.S. interests over recipient communities. “The biggest problem with USAID is that it is designed to support the U.S., not the people in need,” Johnston said.

He adds that prioritizing U.S. interests often inflates costs and reduces efficiency. “Money gets wasted along the chain from Washington to Haiti. Even if the top figure is $400 million, only about $200 million actually reaches Haiti.”

Johnston warns that Trump’s push to align USAID more closely with American interests could exacerbate these inefficiencies. “Moving things to the State Department will likely only make aid more political,” Johnston said.

However, Backer sees a chance to build more sustainable partnerships. “Haiti needs real development partners, not just aid partners. There’s a difference between the two,” Backer said, adding that this could be a moment for Haiti to seek new alliances and reduce its reliance on a few key entities.

For now, organizations in Haiti are left waiting to see how these changes will unfold.

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