The U.S. State Department has officially shut down the United States Agency for International Development (USAID) under the leadership of Secretary of State Marco Rubio, citing inefficiency and poor performance in advancing American interests. The agency, which has been instrumental in foreign aid and development initiatives, will cease operations as of July 1st, with its functions absorbed by the Department of State. This decision follows years of criticisms, including from President Donald Trump, who accused USAID of being plagued by corruption and promoting anti-American policies.
Rubio described USAID as having fallen well below its obligations in promoting U.S. interests, noting that the agency’s $715 billion in inflation-adjusted spending over the decades had facilitated the promotion of ‘anti-American ideals and groups,’ including DEI, censorship, and regime change operations, while fostering an ‘NGO industrial complex.’
As part of Trump’s broader federal waste-cutting initiative, thousands of USAID employees were fired or placed on leave, and billions in aid contracts were frozen or scrapped entirely. The effort has been led by the Department of Government Efficiency (DOGE), a new body tasked with reducing bureaucratic overhead across federal programs.
The consequences of USAID’s closure have drawn concern from health experts and development advocates. In addition to funding NGOs abroad, USAID played a key role in financing global healthcare programs. Critics warn its dismantling could have long-term effects on global health and development. According to a study published Monday in The Lancet, the funding cuts could result in over 14 million preventable deaths by 2030 from diseases such as HIV/AIDS and malaria. The authors noted that between 2001 and 2021, USAID-backed programs were estimated to have saved over 91 million lives in low- and middle-income countries.