After Politico, the White House has made a decision to cancel USAID funding to media outlets, as it has been circulating in the various other media that Politico will have their federal subscription of $8 million dollars cancelled.
The Trump administration is considering shutting down the USAID after they heard that Politico has received funding of $8 million from the agency. However, the chief executive of the Politico has pushed against these allegations and has replied that they have not received any sort of substantial funding from the agency and that it has not been getting any government subsidy. They have further said, “It is a transaction. Just as the government buys research, equipment, software, and industry reports.” They further added, “Politics has no financial dependence on the government and no hidden agenda.”
Media outlets like Politico are known to offer their customers services that track policy, legislation, and regulations in real time to get the best of the information. A lot of people go for independent media exploration and get more resources and information. Hence, the company has said that it is nothing new that officials buy their subscriptions.
However, the Trump administration thinks otherwise.
On Wednesday, the White house press secretary at a press briefing told the present reporters that “….she had been unaware of the USAID funding to media outlets” and further added, “ I can confirm that the more than $8 million taxpayer that have gone to essentially subsidizing subscriptions to Politico will no longer be happening. The DOGE team is working on canceling those payments now.”
What is USAID?
The United States Agency for International Development (USAID) is an agency that was established in 1961 by President John F. Kennedy. It is an independent agency and its primary objective of the agency is to help administrate civilian foreign aid and to provide and promote development assistance around the world.
Politico has played a crucial role in the past six decades to foster stability, reduce poverty in developing countries, and support democratic governance in various countries. It was more or less a representative of the United States of America in the global platform.
USAID was designed primarily to design and execute programs that would address some of the pressing issues, such as combating global health crises, responding to humanitarian emergencies, promoting sustainable economic growth, and strengthening civil society.
The agency has an annual budget that exceeds over $40 billion. The USAID often funds projects like vaccination campaigns in underdeveloped or developing countries in Africa, economic forums in Latin America, etc. Hence, through all the initiatives and projects under USAID, it has played a pivotal role in shaping international development efforts.
Importance of USAID Politico
As aforementioned above, the USAID holds a crucial place in the global platform to promote stability and address pressing issues. However, USAID holds importance due to other reasons as well. These are listed below:
Global Health and Humanitarian Assistance
One of the biggest trademarks of the USAID’s work has been its involvement and active engagement in global health initiatives and mitigating measures for the health issues. The agency has played a vital role in fighting deadly disease breakouts such as HIV/AIDS, malaria, tuberculosis, Ebola, and outbreak of mpox. The agency usually helps by providing financial support, management and administrative solutions to the required institution and the institutions that are affiliated to it. It also finances programs like vaccinations in various countries, training of healthcare workers, and opens doors to access essential medicines that were otherwise different to access by these nations. Over the years the USAID has saved countless lives and has also helped to develop healthcare infrastructure in many developing countries.
Economic Development and Stability
Apart from the healthcare sectors, USAID has also been an active participant in economic development. It has held various economic development initiatives such as agricultural innovation, trade initiatives, small business growth, and the agency has also helped empower communities to lift themselves out of poverty.
Their programs have been beneficial to many as it has played a big role in their lives in establishing sustainable market structures, improving livelihood of people, therefore, contributing to the growth of local economy and stability of global economics. This approach in turn has opened new market opportunities for American businesses, thereby expanding the USA’s presence abroad.
Promotion of Democracy and good governance
Another of the USAID’s objectives has been to promote democratic values and good governance around the world. It has played an essential role in the regions that have emerged from conflicts or authoritarian rule. It has supported through electoral processes, strengthening civil society, and has provided technical assistance to build government infrastructure and proper institutions.
By promoting democratic values and principles, USAID has contributed to peaceful governance and stability, reducing the likelihood of conflict in the region and ultimately ensuring global security and stability.
Why is USAID being shut down?
The decision to dismantle USAID has left everyone in complete disarray. The decision was promoted by the influential figures within the Trump administration and famous businessman Elon Musk, as they argue that the institution is outdated and has become efficient, and has misaligned priorities.
The key reasons for it shutting down are listed below:
Allegations of inefficiency and waste
USAID has been alleged that it has become a bloated bureaucratic entity that is wasting taxpayers’ hard earned dollars by its wasteful spending and inefficient management. It is being said that the agency has lost focus and no longer serves America’s national interests. Moreover, it is being circulated in various media that the agency is in the dire need of reforms and needs to be overhauled to stop any more damage.
“America First” Priorities
The Trump administration, since the beginning of their tenure, has made it clear that their “America First” policy and ideology would prioritize domestic obligations over international concerns. The current government wants to focus on increasing internal issues in the country including the economic pressures, national security concerns, etc. The government is considering the reallocations of assets and resources to best serve the American interest. Hence, the government is redirecting international monetary aids to be used in domestic issues. Now we will discuss some of the consequences of closure of USAID for America and the World
Global humanitarian and development setbacks
If the USAID closure is permanent then it would lead to major setback and abrupt ending of billions of dollars of humanitarian aid and development assistance in various countries. Many developing countries are dependent on these aids provided by USAID for their healthcare, livelihood, and food security. The sudden dismantling of USAID would lead to crises in these developing countries. It might lead to instability and conflict in those countries.
Erosion of US Global Influence
The closure of USAID could be the reason for reduction in the global presence of the United States of America. And it would be a perfect opportunity for the emerging competitors to grab the opportunity to fill the void and expand their global influence, outshining America and undermining the global influence and power America has today. This would result in global imbalance and a shift in international policy as many nations have started to see America as a not-so-reliant country to depend on for their aid programs.
Economic and Diplomatic Repercussions
It could also mean that many American working in the agency would lose their jobs in many fields like international relations, public health, etc permanently. It would also create conflict between the nations whose industries are associated with and rely on USAID-funded projects. In the diplomatic scenario, US allies and partners will be affected and this would further weaken their long-standing relationship.
What is Politico?
Politico is a news organization which specialises in political journalism. It was founded in 2007, and has become an influential source for political news, policy analysis, and government affairs news. Earlier, it was a niche publication focused on Washington insiders, however, over the years it has emerged as a global organization with so much influence in the media. It was launched by John F. Harris and Jim VandeHei who aimed to provide fast, analytical, and exclusive reporting on Politics. At that time, it started off as a digital-first platform whereas traditional media were still struggling to adapt to the internet.
This earlier approach to digital platforms first became its biggest strength in expanding its approach and viewerships. It showcased that Politico has seamlessly integrated into the digital revolution.
Politico is particularly known for covering US elections, congress, the White House, and policy developments. It also focuses on new coverages, frequent updates, real-time political analysis, etc.
In the recent news, it is being said that Politico has faced some financial challenges that have made it difficult for them to meet their payroll obligations. Reports have it that this issue is linked with the termination of federal contracts on media subscriptions. Controversies on these issues that seem interconnected are going on and many high-profile people are even promoting it. Also, the cancellations took place as many officials and business owners think this subscription is the wasteful use of taxpayers money.
Shubhangi Gupta is a distinguished content writer and the visionary founder of The Unpleasant – Acha Nahi Sabse Sacha. With a Master’s degree in Commerce from University of Lucknow, Shubhangi has seamlessly blended her academic background with her passion for reading and writing, embarking on a successful career as a content writer since 2019.
