“Trump Administration Moves to Dissolve USAID”
The Trump administration has formally initiated the process of dissolving the U.S. Agency for International Development (USAID), with plans to transfer its remaining functions to the U.S. Department of State. According to internal communications and a reduction-in-force notice, all USAID operations are scheduled to be merged into the State Department by July 1, with a full operational wind-down expected by September 2.
The move, confirmed in a statement by Jeremy Lewin, a recent appointee to USAID and former staffer with the Department of Government Efficiency (DOGE), will eliminate USAID as an independent agency. Lewin stated that the reorganization aims to consolidate U.S. foreign aid operations under the State Department “consistent with applicable law.”
“As Secretary Rubio has said, following congressional consultations, the State Department intends to assume responsibility for many of USAID’s functions and its ongoing programming,” Lewin wrote. “Accordingly, the Department will seek to retire USAID’s independent operation.”
The reduction in force affects the agency’s remaining 900 employees, down from a peak of approximately 10,000. Those not immediately released on July 1 will assist with the administrative closure and transfer of remaining responsibilities.
Established in 1961, USAID has historically administered U.S. foreign assistance programs, including food aid, health and medical services, education, and initiatives to support political stability and economic development abroad. Critics of the closure warn that removing USAID’s independent role may weaken America’s ability to respond to international crises and reduce global influence, particularly in regions vulnerable to instability or foreign adversary influence.
While the administration has argued that USAID was plagued by inefficiencies and redundancies, many public figures—across both parties—have previously defended the agency’s mission. Prior to joining the administration, Secretary Rubio had publicly supported USAID, calling foreign aid a small but crucial part of the federal budget.
Several members of Congress have expressed concern over the closure. Representative Jim Himes (D-Conn.), ranking member of the House Intelligence Committee, questioned whether the reduction in U.S. engagement abroad might contribute to increased instability in regions such as Africa or the Middle East. “We’re no longer helping struggling nations in Africa. China, or worse, terrorists are filling the vacuum,” Himes said.
The restructuring has also drawn attention for its labor implications. A recent executive order signed by President Trump reclassified USAID as a national security agency, suspending collective bargaining rights for its employees.
Observers expect legal challenges, given that USAID was created by an act of Congress. The agency’s closure—absent legislative repeal—raises questions about executive authority over independent agencies.
Despite administration assurances that “lifesaving and strategic aid programming” will continue under the State Department, it remains unclear which programs will survive the transition. USAID initiatives have historically included funding for HIV prevention, nutrition assistance for infants in developing nations, and logistical support for humanitarian crises.
A message to staff from USAID leadership expressed appreciation for their service, stating: “You exemplify the very best ideals for public service and will not be forgotten or overlooked in this transition process.”
DailyClout will continue to monitor developments surrounding the dissolution of USAID and its implications for U.S. foreign policy, international development, and public sector governance.
Rewritten from TheHill