The administration of US President Donald Trump announced on Friday plans to effectively dismantle the US Agency for International Development (USAID), marking a significant shift toward sharply reducing foreign aid.
“Today, the Department of State and the US Agency for International Development (USAID) have notified Congress of their intention to undertake a reorganization that would transfer certain USAID functions to the State Department by July 1, 2025,” Secretary of State Marco Rubio said in an official statement.
Rubio added that the State Department intends to eliminate the remaining USAID operations that do not align with the administration’s priorities.
“Unfortunately, USAID departed from its initial purpose long ago,” Rubio stated. “The outcomes have been minimal, and the financial burdens excessive.”
Shortly after taking office in January, President Trump signed an executive order temporarily freezing US foreign aid for 90 days. This was followed by extensive cuts to numerous USAID programs, although certain critical humanitarian initiatives were exempted.
These moves sparked shock and criticism at the independent agency, established by the US Congress in 1961. Senate Democrats serving on the Committee on Foreign Relations condemned the reorganization, warning it would severely undermine USAID programs and overload the State Department.
“This proposal is illegal, dangerous, and inefficient,” the committee’s Democrats said in a joint statement.
Before the announced closure, USAID managed an annual budget nearing $43 billion, responsible for more than 40 percent of global humanitarian aid. Most agency personnel had been placed on administrative leave shortly after Trump assumed office.
In a memo circulated on Friday, USAID Acting Administrator Jeremy Lewin reportedly informed staff of plans to eliminate all positions not mandated by law, with the State Department expected to phase out most independent USAID functions in the coming months.
