Opinion | How Trump’s hobbling of USAID cedes Southeast Asia to Chinese influence

The Trump administration’s decision to freeze international assistance and gut federal agencies has sent shock waves across the globe, with profound implications for Southeast Asia. One of the most significant consequences is the shuttering of United States Agency for International Development programmes, a move that threatens to disrupt humanitarian aid, development initiatives and disaster relief efforts across the Greater Mekong region.

In 2023, the United States remained the world’s largest provider of foreign aid, allocating nearly US$68 billion to support humanitarian efforts and security initiatives. However, within just a week of assuming office, the Trump administration abruptly froze all foreign assistance, sending a shudder through international aid communities and foreign governments alike. The sudden withdrawal of USAID funding raises critical concerns about the long-term impact on regional development, governance and security in Southeast Asia.

The renewed focus on foreign aid in the second presidential term is unsurprising given the continued emphasis on US President Donald Trump’s “America first” policies and his administration’s disregard for multilateralism during his first term. This strategic shift was further solidified in the Heritage Foundation’s Project 2025 playbook, which advocates for slashing foreign assistance.

The budget cuts have severely affected the Mekong region, where millions face food insecurity, health crises and dangers from unexploded Vietnam war-era ordnance in Laos, Cambodia and Vietnam. The US has provided US$750 million for mine-clearing efforts in those three countries since 1993, but that funding has stopped.

The latest episode of the Straight Talk Southeast Asia podcast included an appearance by Grace Stanhope, a research associate at the Lowy Institute specialising in Southeast Asian aid. Stanhope, who works on the institute’s Southeast Asia Aid Map as part of efforts to increase transparency of aid tracking, said “this freezing of aid poses severe challenges for many nations in the region, but especially for the poorest ones such as Cambodia, Laos and Myanmar”.