On February 20, 2025, the Hungarian Institute of International Affairs (HIIA) held a roundtable discussion titled, “USAID Unveiled: Where did the US taxpayers’ money go?” The panelists included Daniel Whitehead, Budapest Fellow at HIIA, Petra Halkó, Chief Analyst at the XXI Century Institute, and Zsolt Reile, Senior Research Fellow at HIIA. The discussion was moderated by HIIA Research Fellow Dániel Lévai.
At the beginning of the discussion, Zsolt Reile emphasized that the Trump administration did not move to shut down USAID because it provides development aid—it is clear that development aid is very important—but rather because USAID had transformed into a tool of influence for the Democrats and the liberal deep state. The ideology spread by the agency was only supported by a small minority of people, even within the United States. He gave several examples of USAID projects, including a transgender opera in Colombia, LGBTQ+ activism in Guatemala, and green irrigation systems in Taliban-controlled poppy fields. Many receiving countries themselves were unhappy with these projects, which is why they are now supporting investigations into USAID activities.
Daniel Whitehead theorized that aid is always driven by ideology. There is always a hierarchy of values. US liberals gave aid based on liberal values like support for the LGBTQ+ community and as a result frequently imposed tough conditions on other governments. This approach is very different from that of the Chinese, for example, who are willing to build infrastructure without such strings attached. The priorities of the new American aid structure will be different. He predicted a greater emphasis on domestic issues, such as the frequent fires in California or floods in North Carolina. The new administration will also specifically cut funding from international projects that exacerbate domestic issues within the US, such as those that supported migration to the US in Latin America.
Turning to Europe, Petra Halkó noted that many Europeans see USAID’s presence as essential. However, if we want strong European countries—and a strong transatlantic alliance—USAID is not needed. The program merely undermined European countries by stirring up movements that destabilized politics and deeply influenced their future. The Hungarian and Slovakian governments, among others, have asked the US for data on USAID projects in their countries to better understand the extent of these influence operations.