The U.S. State Department has officially notified Congress of its intent to overhaul the U.S. Agency for International Development (USAID), effectively leading to its dissolution.
As Washington’s primary vehicle for funding political initiatives abroad, USAID has long been at the center of global development efforts – but that era appears to be coming to an end.
A Costly Legacy Ends
Secretary of State Marco Rubio announced that while foreign aid can serve national interests, USAID’s inefficiencies and high costs have made its operations unsustainable.
“Unfortunately, USAID strayed from its original mission long ago,” Rubio stated.
“Thanks to President Trump, this misguided and fiscally irresponsible era is now over. We are re-orienting our foreign assistance programs to align directly with what is best for the United States and our citizens.”
Foreign assistance done right can advance our national interests, protect our borders, and strengthen our partnerships with key allies. Unfortunately, USAID strayed from its original mission long ago. As a result, the gains were too few and the costs were too high.
Thanks to…
— Secretary Marco Rubio (@SecRubio) March 28, 2025
The restructuring plan, which has been in motion since President Trump took office in January 2025, has already resulted in thousands of staff layoffs and the cancellation of billions of dollars in aid contracts.
The Department of Government Efficiency (DOGE), tasked with reducing federal waste, has spearheaded the initiative.
A New Direction for Foreign Aid
Rubio assured that essential humanitarian efforts aligned with the administration’s ‘America First’ priorities would be absorbed into the State Department, while non-essential programs would be discontinued by July 1 2025.
Remaining USAID staff were informed that all non-statutory positions would be eliminated, with final termination dates set for either July 1 or September 2 2025. According to a memo from Deputy Administrator, Jeremy Lewin, personnel would not be automatically transferred to the State Department and would need to undergo a separate hiring process if they wished to remain in government service.
Legal and Political Controversy
The decision has sparked legal challenges, with a federal judge imposing a temporary freeze last week. However, the U.S. Court of Appeals for the D.C. Circuit ruled that the executive branch had acted within its authority, rejecting arguments that the restructuring violated congressional mandates.
Trump has previously accused USAID of being run by ‘radical lunatics’ and facilitating corruption on an unprecedented scale. His government efficiency czar, Elon Musk, went even further, labeling USAID a ‘criminal organization’ and alleging its involvement in funding illicit programs, including bioweapons research.
Global Repercussions
The dismantling of USAID has sparked reactions from global leaders.
Russia’s UN ambassador, Vassily Nebenzia, claimed the agency had been involved in financing radical elements worldwide. Similarly, Slovak Prime Minister, Robert Fico, and Hungarian Prime Minister, Viktor Orban, have expressed concerns about USAID’s influence on their domestic political landscapes.
Similarly, some African leaders, in particular former military leaders in Nigeria, have accussed USAID of funding destabilizing elements in government.
With USAID’s dismantling set in motion, the future of U.S. foreign aid is under-going a fundamental shift. Whether this move results in greater efficiency or diminished global influence remains to be seen, but one thing is clear: the landscape of international development will never be the same.
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