USAID’s closure could cost Latin America and Caribbean US$2.2 Billion in support

United States (U.S) President Donald Trump sidekick and world’s wealthiest man, Elon Musk, today announced Trump has “agreed” with him to shut down the U.S. Agency for International Development (USAID), a decision that could deprive Latin America and the Caribbean of critical aid amounting to $2.2 billion.

In a decision that has experts scratching their heads, Musk’s comments came on the heels of reports that two senior USAID security officials were placed on administrative leave. This followed an incident in which the officials denied representatives from the Department of Government Efficiency (DOGE), an agency spearheaded by Musk, access to USAID’s internal systems during a visit to the agency’s Washington, D.C. headquarters.

USAID plays a vital role in the region, with a longstanding commitment to development initiatives across Latin America and the Caribbean. In 2025, the Biden Administration had requested $2.2 billion in foreign assistance for these areas, funds that would support USAID’s numerous programmes aimed at improving the lives of millions.

The agency operates 14 bilateral missions and country offices, in addition to three regional programmes and five non-presence countries in the region. Its initiatives cover a wide range of critical issues, including social inclusion, humanitarian aid, economic growth, health and education improvements, biodiversity conservation, climate change action, migration management, and anti-corruption efforts.

Experts warn that a loss of such vital services could have far-reaching consequences. Without the support provided by USAID, the region may face increased poverty, worsening health and education outcomes, and a rise in political, social, and economic exclusion. The closure of the agency would also hamper ongoing efforts to combat the climate crisis and improve overall regional stability.