On Friday, the U.S. State Department officially notified Congress of its decision to dissolve the U.S. Agency for International Development (USAID). The organization was the primary channel for American foreign aid. Secretary of State Marco Rubio announced that almost all USAID-backed programs would be discontinued due to high costs and limited benefits. However, the foreign assistance that can serve national interests may continue.
Rubio stated that USAID had stayed away from its original mission and that President Donald Trump had initiated the process of dismantling the agency in January. He stated that U.S. foreign assistance must align with the country’s best interests and taxpayer accountability. Programs deemed essential for lifesaving aid will be absorbed by the State Department, while others will be phased out by July 1, 2025.
“Unfortunately, USAID strayed from its original mission long ago… Thanks to President Trump, this misguided and fiscally irresponsible era is now over. We are reorienting our foreign assistance programs to align directly with what is best for the United States and our citizens,” Rubio said.
As part of the restructuring, thousands of USAID employees have been laid off, placed on leave, or informed that their positions will be eliminated. According to a memo from Jeremy Lewin, USAID’s deputy administrator, non-statutory positions will not be transferred to the State Department without a separate hiring process. The Department of Government Efficiency (DOGE), led by Elon Musk, has frozen billions of dollars in aid contracts as part of a broader federal cost-cutting initiative.
The move has triggered legal challenges. A federal judge initially imposed a temporary freeze on the dissolution, but onFriday, the U.S. Court of Appeals for the D.C. Circuit ruled in favor of the administration, stating that the executive branch acted within its authority in reorganizing foreign aid programs. The ruling stated that Congress had not explicitly barred such a move.
Some have criticized the move, citing dismantling the USAID may decrease the U.S. influence worldwide. However, some world leaders, such as Russia’s UN ambassador, Vassily Nebenzia, have accused USAID of having financed radical forces around the world. Other leaders, such as Slovak Prime Minister Robert Fico and Hungarian Prime Minister Viktor Orban, have also highlighted the possible meddling of USAID in internal politics.
Trump has been a long-time critic of USAID, charging it with corruption and inefficiency. While Elon Musk has also called the agency a “criminal organization” engaged in clandestine programs, including purported bioweapons research.
The final shutdown of USAID is to be finished by September 2. The State Department will assume selected aid programs while the remainder is terminated permanently. Rubio reaffirmed that the reorganization will enhance efficiency and make foreign assistance serve U.S. interests.
