The Trump administration is reportedly considering merging the U.S. Agency for International Development (USAID) with the State Department, sparking significant backlash from Democratic lawmakers and concern among international development workers. This proposed change marks a potential seismic shift in U.S. foreign aid distribution and raises alarms over the future of independent humanitarian efforts.
According to reports, discussions on this merger have taken place within the National Security Council, indicating potentially serious intentions to strip away USAID's independent status. A source confirmed to Reuters on January 31, 2025, discussed these plans but emphasized no final decisions had yet been made. This development coincides with President Trump's executive order, which paused foreign aid funding for three months to review its alignment with his administration's “America First” policy.
On Monday, January 20, shortly after taking office, Trump signed the executive order freezing U.S. foreign aid. The order demanded urgent evaluations of all USAID-funded programs, raising concerns about the immediate and long-term impacts on global aid initiatives. The agency, with a whopping budget of $50 billion, plays a pivotal role not just domestically, but also internationally, particularly for vulnerable populations globally.
Democratic lawmakers express growing alarm over the proposed merger, stressing the necessity of maintaining USAID's independence. On February 1, Senators Jeanne Shaheen (D-N.H.) and Brian Schatz (D-Hawaii), alongside Representatives Gregory Meeks (D-N.Y.) and Lois Frankel (D-Fla.), penned a letter addressing USAID's acting administrator Jason Gray. They stated, “It is imperative we maintain an independent development voice and capability within the U.S. government. Any proposal to modify this structure would require an Act of Congress.”
The lawmakers also criticized the administration's decision to place USAID senior staff on leave, terminate contracts, and freeze foreign assistance without conducting meaningful consultations with Congress. This significantly hinders the agency's operations, risking lives abroad and damaging U.S. credibility on the global stage.
“The Administration’s decisions have created a maelstrom of problems,” they wrote, reflecting the broader worries about transparency and accountability. The upcoming shift has particularly unsettled existing contractors and aid workers who depend on the agency for their livelihoods and the communities they serve. One USAID contractor, María, expressed her fear, stating, “It feels completely targeted at this industry… it's like they're saying ‘fuck you’,” referring to the chilling effect the freeze has had on her work and others like her.
Reports indicate the potential merge would dismantle USAID's humanitarian capabilities, which have allowed the agency to provide assistance to countries with whom the U.S. lacks formal diplomatic ties. This operational flexibility has been key to facilitating aid to nations such as Iran, where USAID’s support has been instrumental in bridging gaps and fostering goodwill.
Historically, USAID’s independence has been seen as indispensable for effective humanitarian action, which is often apolitical. Endangering this autonomy could hinder the agency's ability to navigate complex global humanitarian landscapes where traditional political criteria do not apply.
Further heightening tensions, Senate Minority Leader Chuck Schumer highlighted the alleged intimidation of USAID employees by the Trump administration. “Trump has been purging and intimidating USAID employees,” he asserted, emphasizing the dire consequences of merging the agency's functions under the State Department.
Adding to these concerns, the reported legal pathways the administration is pursuing to facilitate the merger have raised eyebrows. Uncertainties about Trump’s legal authority to bypass Congress and merge the agencies have also emerged, with several lawmakers arguing such actions would be both illegal and detrimental to U.S. interests.
“This would be illegal and against our national interests,” Schumer continued, with significant ramifications looming for countless families reliant on USAID programs. According to the letter from Senate Democrats, the freeze has resulted in hundreds of layoffs within the international development sector, reverberated beyond Washington to those working directly with affected populations across the globe.
The freeze on foreign aid and the potential merger create nerve-wracking uncertainty for employees like Hanna, another aid worker who fears for her future. Placed on administrative leave, she described her situation: “I don’t really know if I’m employed or not either… It’s another way of saying I think I’m about to cross the unemployment line.”
The situation is precarious for countless others involved in the sector, with many fearing imminent unemployment as hundreds of outside contractors face contract terminations as well. Current projections suggest up to 160,000 people could compete for dwindling positions if the freeze and potential merger persist.
The sentiments among Democratic lawmakers and development professionals echo one recurring theme: the importance of preserving the autonomy of USAID to adequately respond to humanitarian needs worldwide. The consequences of merging USAID with the State Department could fundamentally alter the effectiveness of American foreign aid, raising significant concerns for the future of U.S. diplomacy and humanitarian efforts globally.
Observers will continue to monitor discussions around the merger closely, as any definitive action taken may lead not only to legal battles but also to enduring impacts on international development assistance efforts.