The effective dismantling of the U.S. Agency for International Development has dealt a major blow to American “soft power,” said Isobel Coleman, a former senior USAID official.
Speaking at the Beckman Center at UC Irvine on Wednesday evening, March 19, Coleman, who served as USAID’s deputy administrator for policy and programming under the Biden administration, said there will be a severe impact from halting critical foreign assistance programs.
“The work in the field has mostly ground to a halt, and American soft power has taken a big hit,” said Coleman, who led the review of the U.S. mission to the United Nations for former President Joe Biden’s transition team before joining USAID. “Over its 63-year existence, USAID has saved and improved the lives of hundreds of millions of people.”
Coleman’s talk at UCI, part of the School of Social Ecology’s speaker series on contemporary policy issues, comes after the Trump administration made drastic cuts to USAID’s funding and operations as part of a broader effort to reorganize U.S. foreign aid.
Secretary of State Marco Rubio announced on March 10 that an internal review had resulted in the cancellation of 83% of the agency’s programs and much of USAID’s work is at a standstill. The goal, according to the administration, is to prioritize aid that aligns more closely with U.S. interests, focusing on areas including humanitarian aid and disaster response, and to counter China’s influence.
But the halt, Coleman argued, not only exacerbates human suffering, but also shifts the global balance of power, making it “easier for China to extend and deepen its interests around the world.”
“No country is more pleased to see USAID shut down than the People’s Republic of China,” she said, pointing out that China has already signaled its intent to fill the void in countries that once depended on American aid, including Cambodia and Nepal.
This week, the Trump administration’s efforts to dismantle USAID hit a legal roadblock when a federal judge ruled the move likely violated constitutional processes, ordering the restoration of email and computer access for all USAID employees, including those on administrative leave.
Coleman said that while USAID’s budget makes up a little more than 0.5% of total federal spending, its reach has been significant. In fiscal year 2023, the agency distributed nearly $43.8 billion in aid, and U.S. aid dollars supported programs in 177 countries and 29 regions, according to the Pew Research Center.
Coleman quoted former President George W. Bush: “We have the power to help. To work with other nations, to reduce suffering and save lives.”
He was talking about why the President’s Emergency Plan for AIDS Relief (PEPFAR), a program created by the U.S. government in 2003 to address the global HIV/AID epidemic, was important fund, the same reason why she argues USAID is important.
“Of course, American generosity can’t and shouldn’t be endless. There are many needs at home,” Coleman acknowledged. “But the entire USAID budget accounts for half of 1% of the federal budget.”
At the same time, she recognized the need for fiscal responsibility.
“Having worked in government … I want to see our budget deficit reduced, if not eliminated,” Coleman said. “I know how important that is for the long-term health of the U.S. economy and for Americans to be economically prosperous.”
The former USAID official said she anticipated significant reforms would take place under the new administration.
“In some respects, I welcome that, too. Government can use a shakeup now and then,” she said. “But this — no, I did not anticipate.”
Rather than just restoring USAID to its previous form, Coleman argued the focus should be on a “wholesale restructuring of U.S. foreign aid.” She said she supports giving regional offices more authority in directing funds and reducing reliance on Congress to earmark programs and locations for USAID spending.
When an audience member asked whether other players could fill the gap left by USAID, Coleman answered, “Perhaps.”
She pointed to USAID’s role in helping South Korea rebuild after the Korean War, noting that the country, once a recipient of U.S. aid, has since become a donor — providing financial and humanitarian assistance to other nations.
However, Coleman stressed how difficult it would be to replace USAID’s scale, saying it would take about 20 South Koreas to fill the gap.
South Korea, a major U.S. ally and trade partner, has allocated $4.5 billion in government aid for 2025 to support economic growth in developing countries.
“I can’t help but think that the U.S. — the richest country in the history of the world — can afford to extend some generosity to the world’s most destitute,” Coleman said.
She also expressed concern over the loss of USAID’s work in promoting democracy around the world, including supporting investigative journalism in fragile states.
She ended her remarks quoting U2’s Bono: “U.S. development assistance has its flaws, but it was as close to poetry as policy gets.”
