The Trump administration has formally started the process of shutting down the U.S. Agency for International Development (USAID). This move aligns with its broader plan to cut foreign aid and shift responsibilities to the State Department.
Background and Legislative Efforts
Earlier in 2025, President Donald Trump froze most foreign aid programs. Later, Secretary of State Marco Rubio approved limited humanitarian aid. However, uncertainty remained over USAID’s future. Now, the administration is pushing for a legal framework to dissolve USAID as an independent agency. As a result, its key functions will move to the State Department.
Impact on Workforce and Operations
The State Department has already informed Congress about its plan to reduce USAID’s activities. According to a memo titled “USAID’s Final Mission,” only essential programs will continue. Consequently, thousands of employees will lose their jobs. Reports indicate that out of more than 10,000 staff members, only 294 will remain.
Legal Challenges and Court Rulings
The plan to close USAID has faced legal opposition. At first, a federal judge blocked the mass layoffs. However, an appeals court later overturned this decision. As a result, the administration can now move forward with its restructuring plan.
Concerns Over U.S. Global Influence
Many critics argue that shutting down USAID will weaken U.S. influence abroad. Furthermore, they believe it will allow China to expand its presence in developing nations. In addition, several retired military officials have warned that cutting foreign aid could threaten U.S. national security.
Humanitarian Aid Will Continue
Despite USAID’s closure, the Trump administration has promised to maintain certain aid programs. For instance, the U.S. recently allocated $73 million to help Rohingya refugees through the U.N. World Food Programme.
A Major Shift in U.S. Foreign Policy
Ultimately, closing USAID marks a turning point in America’s foreign aid strategy. While the administration sees it as a way to cut costs and streamline operations, others worry about its long-term effects on global development and diplomacy.
Leave a Reply