Beginning July 1, 2025, the United States will discontinue its traditional charity-based foreign aid approach in Africa, Latin America, and other developing regions, opting instead for a strategy rooted in investment and national interest.
This policy shift was announced in a statement signed by Secretary of State Marco Rubio, indicating that the Department of State will assume responsibility for administering foreign assistance, previously managed by the U.S. Agency for International Development (USAID). The change is aimed at enhancing accountability, efficiency, and impact.
The statement characterized the longstanding aid model as ineffective and dependency-inducing, asserting that some governments had become overly reliant on external support. Moving forward, U.S. assistance will be targeted, time-limited, and conditional on reforms that encourage economic self-reliance and attract private sector investment.
“As of July 1st, USAID will officially cease to implement foreign assistance. Foreign assistance programs that align with administration policies—and which advance American interests—will be administered by the State Department, where they will be delivered with more accountability, strategy, and efficiency,” the statement read.
It further stated:
“Equally importantly, the charity-based model failed because the leadership of these developing nations developed an addiction. State Department research finds the overwhelming sentiment in countries formerly receiving USAID funding is for trade, not aid. After engaging with nations across Latin America and Africa, we have consistently heard that developing countries want investment that empowers them to sustainably grow, not decades of patronizing UN or USAID-managed support.”
Secretary Rubio cited data showing that, despite over $165 billion in aid directed to sub-Saharan Africa since 1991, the region voted in alignment with the U.S. on only 29 percent of key United Nations resolutions in 2023—among the lowest levels globally.
Additional Insights
Under the revised policy, the U.S. will prioritize aid to countries demonstrating both a willingness and the institutional capacity to undertake self-sustaining reforms. Aid packages will be designed to catalyze private and international investment, with a particular emphasis on involvement by American firms.
The transition also reflects growing concern over China’s expanding influence in developing regions. While China’s aid is typically tied to infrastructure projects, the U.S. aims to differentiate its strategy by focusing on long-term economic growth rather than dependency.
Another notable reform includes the mandatory branding of U.S. aid with the American flag, replacing the previous practice of delivering assistance anonymously through third-party non-governmental organizations (NGOs).
According to the statement, this strategic overhaul builds on a comprehensive review of over $715 billion in foreign aid spending under the Trump administration, marking what Rubio described as one of the most significant transformations of U.S. development policy in recent history.
