USAID Ceases Operations, Programs Transferred to State Department
U.S. Secretary of State Marco Rubio announced the formal end of USAID operations as of July 1, transferring its remaining programs to the State Department. This move is part of the Trump administration’s effort to realign international aid with its policy priorities, focusing on American interests and promoting targeted, time-limited assistance. The decision follows the termination of approximately 83% of USAID’s programs, affecting thousands of workers and prompting concerns over potential humanitarian consequences.
The Trump administration has criticized USAID, accusing it of fraud and promoting a ‘liberal’ agenda despite limited evidence. The agency’s reduction in operations has significantly impacted its global humanitarian efforts. Founded in 1961, USAID has historically supported democracy-building, human rights, and economic development worldwide. Rubio emphasized the need for a more effective approach, highlighting the challenges faced by USAID since the end of the Cold War.
Experts and former U.S. officials have voiced criticism of the decision, citing the potential for devastating humanitarian impacts. Research published in The Lancet suggests that the cuts could lead to an estimated 14 million deaths by 2030, including nearly 4.5 million children under the age of five. Despite these concerns, Rubio defended the move as part of a broader America First policy, aiming to ensure that U.S. assistance supports nations willing to contribute to their own development. The administration has also emphasized its commitment to supporting Ukraine through significant funding, even as it transitions its foreign aid strategy.
The chief U.S. diplomat presented the step as part of President Donald Trump’s broader policies aimed at requiring international allies and partners to pay a greater share for projects around the world. ‘Americans should not pay taxes to fund failed governments in faraway lands. Moving forward, our assistance will be targeted and time limited. We will favor those nations that have demonstrated both the ability and willingness to help themselves,’ Rubio said.
Since the start of Russia’s full-scale invasion, USAID has provided $2.6 billion in humanitarian aid to Ukraine, as well as $5 billion in development assistance and more than $30 billion in direct budget support to Kyiv. The administration has also taken steps to ensure continued support for Ukraine while implementing these changes, reflecting the complex interplay between humanitarian aid and national policy goals under the Trump administration.
This decision marks a significant shift in the U.S. approach to foreign assistance, with implications for global humanitarian efforts and international relations. While the administration argues that the realignment will enhance the effectiveness of U.S. foreign aid, critics warn of the potential long-term consequences for vulnerable populations and the broader impact on global stability.