President Donald Trump has issued an executive order directing the elimination of "non-statutory components and functions" in various government agencies, including the U.S. African Development Foundation (USADF), the Inter-American Foundation, and the U.S. Institute of Peace.

The move is part of the Trump administration's broader effort to significantly reduce the size of the federal government, increase accountability, and cut costs. The agencies affected by the executive order have been given 14 days to submit reports to the Office of Management and Budget (OMB) confirming compliance and identifying any statutory obligations tied to their functions.

The USADF, an independent U.S. government agency established by Congress, has invested in African grassroots enterprises and social entrepreneurs over the past 40 years. The agency provides grant funding, capacity-building assistance, and networking opportunities to support African enterprises and entrepreneurs. In 2024 alone, USADF invested $16.56 million across 114 grants in agriculture, $7.37 million across 34 grants to expand off-grid energy access, and $4.19 million across 94 grants to advance youth and women's entrepreneurship across the continent.

Despite its impact, the future of USADF remains uncertain and may depend on the results of its latest audit. According to the audit, conducted by consulting firm Williams Adley, the agency's financial statements were found to be fairly presented in all material respects and in compliance with U.S. generally accepted accounting principles. The audit also reported no instances of noncompliance with laws, regulations, contracts, or grant agreements.

The Trump administration's efforts to downsize the federal government are being led by the Department of Government Efficiency (DOGE), established on January 20, 2025, and led by Elon Musk. DOGE's mandate is to streamline government operations, eliminate redundancies, and cut costs. Key actions include a federal hiring freeze, an executive order mandating staff reductions, potential restructuring or elimination of agencies, and voluntary buyouts for federal employees.

While supporters argue that these steps will lead to a more streamlined and accountable government, critics express concern over potential disruptions to public services and the concentration of power within the executive branch. The impact of the Trump administration's efforts on the USADF and other affected agencies remains to be seen, but it is clear that the future of these organizations is uncertain.

In the context of the Trump administration's broader efforts to reduce the size of the federal government, the elimination of the USADF and other agencies raises important questions about the role of government in supporting entrepreneurship and development, particularly in Africa. As the administration continues to push for a more streamlined and efficient government, it remains to be seen how these efforts will impact the lives of people around the world.