Not just propaganda but also psychological operations. It's literally in the name. Their logo colors AID in red [1] so that people think they are an aid organization which they have never been. The money allocated them went to bribing foreign officials, altering narratives, changing policies, blackmailing people, etc... It is very likely that the narratives about cutting funding to them affecting food or other aid programs was likely created by them in attempt to save their organization.

Their name actually stands for United States Agency for International Development

[1] - https://en.wikipedia.org/wiki/Usaid