The administration of US President Donald Trump has officially announced plans to dismantle the US Agency for International Development (USAID), marking a significant shift in the country's approach to foreign aid. On March 28, 2025, Secretary of State Marco Rubio revealed that certain functions of USAID would be transferred to the State Department, with the agency set to be effectively dissolved by July 1, 2025.
In an official statement, Rubio indicated that the State Department intends to eliminate remaining USAID operations that do not align with the administration’s priorities. “Unfortunately, USAID departed from its initial purpose long ago,” he stated, adding that the outcomes of the agency's work had been minimal while the financial burdens were excessive.
This announcement follows a series of actions taken by the Trump administration since January 2025, when President Trump signed an executive order that temporarily froze US foreign aid for 90 days. The subsequent cuts to various USAID programs, although some critical humanitarian initiatives were exempted, sparked widespread shock and criticism for an agency that has been central to US foreign aid efforts since its establishment 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.
USAID, which managed an annual budget nearing $43 billion, was responsible for more than 40 percent of global humanitarian aid. However, the agency has faced severe downsizing, with nearly all of its remaining 900 employees being terminated. In a memo circulated to staff, USAID Acting Administrator Jeremy Lewin reportedly informed employees of plans to eliminate all positions not mandated by law.
Critics of the Trump administration's decision have raised alarms about the potential impact on humanitarian efforts worldwide. The agency has been accused of mismanagement, with the administration asserting that it has funded overseas programs that do not align with US interests. However, current and former USAID employees argue that the agency meets vital humanitarian needs and bolsters America’s soft power.
The dismantling of USAID is not without its legal challenges. The decision to shutter an agency established by Congress without legislative input is expected to spark lawsuits. Legal experts have noted that such a move typically requires congressional approval, and the administration's actions could face scrutiny in the courts.
In a message to USAID employees, Lewin defended the decision, saying it would “significantly enhance efficiency, accountability, uniformity, and strategic impact” in foreign aid efforts. He confirmed that most non-statutory positions at USAID would be eliminated, with employees receiving reduction-in-force notices starting March 28.
Some USAID programs, including humanitarian assistance, global health initiatives, strategic investment, and limited national security projects, will be absorbed by the State Department’s regional bureaus, according to the congressional notification. However, other functions deemed redundant will be cut entirely.
The restructuring has faced significant pushback from career officials within USAID. One senior official was placed on leave after publicly blaming Trump appointees for crippling the government’s ability to carry out life-saving humanitarian missions. This sentiment reflects the frustration among many within the agency who believe that the cuts will hinder the US's capacity to respond to international crises.
Adding to the controversy, Secretary Rubio emphasized that the administration is reorienting foreign assistance programs to align directly with what is best for the United States. “Thanks to President Trump, this misguided and fiscally irresponsible era is now over,” he stated, indicating a shift toward a more controlled approach to foreign aid.
Historically, USAID has played a crucial role in addressing global poverty and hunger, operating under the Foreign Assistance Act of 1961. Before the Trump administration, the agency was one of the largest distributors of foreign aid worldwide, responsible for distributing about half of the approximately $72 billion in foreign aid provided by the US in 2023 alone.
As the Trump administration continues to push forward with its plans, the implications of dismantling USAID could be far-reaching. Humanitarian aid experts have expressed concern that the cuts may lead to a renewed crisis in global health, including fears of a resurgence of diseases such as AIDS.
The recent announcement has prompted significant alarm among various humanitarian organizations and aid experts, who are concerned that the changes could severely limit the US's ability to respond effectively to international disasters. Despite these concerns, the administration has stated that it is prepared to provide assistance where needed, such as in response to recent earthquakes in Myanmar and Thailand.
As the situation unfolds, the future of USAID remains uncertain. With the administration's commitment to restructuring foreign aid and the potential for legal challenges ahead, many are left wondering how these changes will impact the US's role in global humanitarian efforts.