Published on 25 Feb 2025

Trump’s major cuts in foreign aid may damage US soft power

After taking office, the Trump administration has not only threatened to close the United States Agency for International Development, but also froze almost all foreign aid funds for 90 days, claiming that this is to ensure "America first". NTU PPGA’s Assoc Prof Nilay Saiya said that cutting foreign aid is not the best way to reduce government spending. "If the government really wants to cut spending, it should start with welfare, such as social security, medical insurance, Medicaid and military spending,” he said. NTU RSIS associate research fellow Kevin Chen said that countries and non-governmental organisations may seek more diversified sources of funding to mitigate the impact of future policy changes in Washington. US’ reputation in developing countries will also be damaged, he said.

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