President John Dramani Mahama has instructed Finance Minister, Dr Cassiel Ato Forson, to urgently address the funding gap created by the suspension of USAID’s international funding programme.

In a statement issued on Tuesday, February 11, and signed by the President’s Spokesperson, Felix Kwakye Ofosu, the President expressed deep concern over the estimated $156 million funding shortfall.

He specifically highlighted the potential $78.2 million deficit, which could severely impact critical interventions.

"President John Dramani Mahama has directed the Minister for Finance, Hon Dr Cassiel Ato Forson, to take urgent steps to bridge the funding gap arising out of the suspension of the USAID's international funding programme," the statement read.

"Of particular concern to the President, is the impact of the projected $78.2 million shortfall that will adversely impact such critical interventions as malaria prevention, maternal and child health, family planning, reproductive health, nutrition and the fight against HIV/AIDS under which the availability of antiretroviral drugs, testing, and prevention programs are threatened," it added.

What is USAID, and why is Trump moving to shut it down?  

The future of the United States' primary international aid agency, USAID, is uncertain as the Trump administration moves to merge it with the U.S. Department of State. Employees have been locked out, and thousands are set to be placed on leave following President Donald Trump’s return to office. The agency has also recalled its staff from missions worldwide.  

Trump has long advocated for aligning foreign aid with his "America First" policy, raising concerns about significant impacts on global humanitarian programs. On Friday, he posted on Truth Social, stating that USAID’s spending "IS TOTALLY UNEXPLAINABLE... CLOSE IT DOWN!" 

Tech billionaire Elon Musk, who is collaborating with the White House to reduce federal spending, has previously called USAID "a criminal organization" and claimed Trump had agreed to dismantle it. However, neither Trump nor Musk has provided evidence to support these allegations. Efforts to close the agency are expected to face legal challenges.  

What is USAID and what does it do?  

Established in the early 1960s, the United States Agency for International Development (USAID) manages humanitarian aid programs for the U.S. government. It employs around 10,000 people, two-thirds of whom are stationed overseas, with operations in over 60 countries and collaborations with various partner organizations.

USAID’s work spans a broad spectrum of humanitarian efforts. Beyond providing food aid in famine-stricken regions, it operates a globally recognized early-warning system for food shortages. A significant portion of its budget is also allocated to health programs, such as polio vaccinations and pandemic prevention measures. 

How much does USAID cost the US government?  

In 2023, the U.S. allocated $68 billion (£55 billion) to international aid, with USAID accounting for more than half—approximately $40 billion. This amounts to around 0.6% of the total U.S. government spending of $6.75 trillion.  

Most of USAID’s funding supports humanitarian efforts in Asia, sub-Saharan Africa, and Europe, particularly in Ukraine. The U.S. remains the world's largest contributor to international development aid, significantly outspending other nations. For comparison, the UK—the fourth-largest donor—allocated £15.3 billion in 2023, about a quarter of what the U.S. provided.  

Trump has consistently criticized foreign aid, arguing that it is an inefficient use of taxpayer money. He has been particularly vocal about USAID, highlighting specific expenditures he deems wasteful. The White House has listed several projects as examples of "waste and abuse," including a $1.5 million grant to an LGBTQ group in Serbia, $2.5 million for electric vehicles in Vietnam, and $6 million for tourism in Egypt. 

Critics, however, argue that the administration has misrepresented these expenditures. For example, the Egypt project, which began in 2019 under Trump, funds water, education, and transportation initiatives in North Sinai.  

Upon returning to office, Trump issued an executive order freezing most international aid for a 90-day review, though waivers were later granted for humanitarian programs. This move has disrupted international development efforts and essential services.  

Musk and White House officials have also shared misleading information about USAID's spending. For instance, Musk promoted a debunked claim that the agency funded Hollywood celebrities’ visits to Ukraine.  

As the administration pushes forward with plans to restructure USAID, the future of U.S. international aid remains uncertain.

Read the statement from the Presidency below: 

PRESIDENCY COMMUNICATIONS

Tuesday, February 11, 2025.

President Mahama directs Finance Minister to urgently bridge USAID funding gap.

President John Dramani Mahama has directed the Minister for Finance, Hon Dr Cassiel Ato Forson, to take urgent steps to bridge the funding gap arising out of the suspension of the USAID's international funding program.

The President expressed deep concern over the funding gap estimated at $156 million.

Of particular concern to the President, is the impact of the projected $78.2 million shortfall that will adversely impact such critical interventions as malaria prevention, maternal and child health, family planning, reproductive health, nutrition and the fight against HIV/AIDS under which the availability of antiretroviral drugs, testing, and prevention programs are threatened.

The President has requested that the bridging arrangements focus on these priority areas to mitigate any deleterious effects occasioned by the USAID funding disruptions.

Felix Kwakye Ofosu, MP.

Spokesperson to the President, Minister, Government Communications.