USAID Shuttered a Year Ago. Will Trump’s Trade Over Aid Replacement Actually Work?

The Trump administration has shut down USAID as an independent agency and folded it into the State Department after canceling most of its contracts.

In 2026, Ambassador Michael Waltz launched “Trade Over Aid,” a program that seeks to replace development grants with trade deals and private investment in 35 countries.

The administration says the shift will create more sustainable partnerships, but critics say it reduces direct humanitarian support and U.S. soft power.

Health experts warn the change could weaken programs tied to PEPFAR, malaria control, nutrition, and other life-saving services.