State Department officially informs Congress of plans to dissolve USAID

The US State Department announced on Friday that it will dissolve the US Agency for International Development (USAID) and transfer many of its functions directly under the department’s authority. This reorganization is set to take effect by July 1, 2025.

The decision to close USAID, which was established by Congress, has raised concerns about potential legal challenges, as the legislative branch was not consulted in this significant action. Critics of the move, including current and former USAID employees, argue that despite its shortcomings, the agency fulfills crucial humanitarian needs and enhances America’s soft power on the international stage.

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The Trump administration has previously accused USAID of mismanaging taxpayer funds and supporting international programs that do not align with US interests.

In the early weeks of the administration, efforts were made to dismantle the agency, resulting in a freeze on nearly all foreign assistance pending a review. This has led to thousands of USAID employees being laid off or placed on leave, with less than 900 staff remaining as of last week.

The drastic cuts to USAID have prompted legal action from various aid organizations and former employees, some of whom described difficult experiences returning home from overseas missions without reimbursement.

On the same day as the announcement, a federal appeals court upheld the Trump administration's decision to restructure the agency. The ruling by the 4th US Circuit Court of Appeals was unanimous, stating that while courts could eventually overturn the dismantling, they would not intervene at this time.

USAID has been a primary target of the Department of Government Efficiency (DOGE), led by Elon Musk, which aims to streamline operations and reduce expenditures across the federal government.

Jeremy Lewin, a senior official at USAID and DOGE liaison, communicated to remaining USAID employees that this transition would "significantly enhance efficiency, accountability, uniformity, and strategic impact in delivering foreign assistance programs," thereby allowing the nation and the President to present a unified stance in foreign affairs.

As part of this restructuring, Lewin indicated that nearly all non-statutory positions at USAID would be eliminated, with employees beginning to receive “reduction-in-force” notices. He also stated that over the next three months, the State Department would collaborate with the remaining USAID staff to manage the essential humanitarian and strategic aid programs that will continue.

Read more: Several NGOs lay off employees funded by USAID

According to a notice to Congress, the USAID programs that will persist under the State Department include “humanitarian assistance, global health functions, strategic investment, and limited national security programs.”

Development initiatives from USAID’s regional bureaus will be integrated into the corresponding regional bureaus of the State Department. The notice also highlighted that many functions might be redundant and would therefore be eliminated in the restructuring plan.

Resistance to the closure of USAID has emerged from senior career officials within the agency. A high-ranking USAID official was placed on leave after sending a memo criticizing political appointees for hindering the US government's ability to carry out vital humanitarian efforts.