US State Department Initiates Formal Process to Dissolve USAID

Reports indicate that all remaining USAID employees have been informed of their impending job terminations.

The State Department has officially informed Congress of its plan to “reorganize” USAID, effectively dismantling the agency that serves as the primary US channel for funding international political endeavors.

Secretary of State Marco Rubio stated on Friday that while foreign aid can advance national interests, the decision to eliminate most USAID programs stems from their high costs and limited effectiveness.

Rubio stated that USAID had allegedly long deviated from its initial purpose, adding that the administration is redirecting foreign assistance to directly serve the interests of the United States and its citizens.

Rubio pledged that essential, life-saving initiatives aligned with the administration’s “America First” agenda would be absorbed by the State Department, while the remainder would be phased out by July 1, 2025.

President Donald Trump initiated the dismantling of USAID shortly after assuming office. Since then, numerous employees have been terminated or placed on leave, and billions of dollars in aid contracts have been frozen or canceled as part of Trump’s broader federal efficiency reforms spearheaded by the Department of Government Efficiency (DOGE).

The remaining staff were reportedly notified on Friday that all non-statutory positions at USAID would be eliminated, and that they would soon receive a termination date of either July 1 or September 2. A memo from Jeremy Lewin, a DOGE staffer who became deputy administrator of USAID, cautioned personnel that they would not be automatically transferred to the State Department without a separate and independent hiring process.

The move to dismantle USAID and transfer its functions to the State Department faced legal challenges, including a temporary injunction issued by a federal judge the previous week. However, on Friday, the US Court of Appeals for the D.C. Circuit ruled that DOGE had the authority to review and restructure foreign aid programs. The court dismissed arguments that the executive branch exceeded its authority by altering an agency authorized by Congress, asserting that Congress had not explicitly prohibited such reorganization.

Trump previously accused the organization of being run by “radical lunatics” and enabling corruption “at levels rarely seen before.” His federal government efficiency advisor, Elon Musk, described USAID as a “criminal organization” and alleged that it had funded bioweapons research, among numerous other controversial programs.

Moscow’s ambassador to the UN, Vassily Nebenzia, stated last month that the revelations about USAID’s links to secretive initiatives and alleged “activities throughout the world” validate concerns long expressed by Russia.

Other foreign leaders have also questioned USAID’s role in their domestic affairs. Slovak Prime Minister Robert Fico raised concerns about potential “interference” in his country’s political landscape. Hungarian Prime Minister Viktor Orban similarly stressed the need to “defend” against organizations that interfere in domestic politics.

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