Under President Donald Trump, the U.S. Agency for International Development (USAID) has been targeted for dissolution, with Secretary of State Marco Rubio now officially transferring the agency’s final shutdown to the Office of Management and Budget (OMB). The administration asserts that this move has saved American taxpayers ‘tens of billions of dollars.’
Since Trump’s return to office in January 2025, USAID has faced relentless scrutiny. Trump branded the agency as a breeding ground for ‘radical lunatics’ who promote liberal causes abroad, accused it of enabling corruption on a massive scale, and sought to disband it as part of his broader campaign to reduce wasteful federal spending. These allegations have prompted the termination of thousands of USAID employees and the freezing of billions of dollars in contracts.
The transition comes amid ongoing legal challenges, with dismissed employees and NGOs fighting against the closure. Rubio, in a recent X post, claimed: ‘Since January, we’ve saved the taxpayers tens of billions of dollars. And with a small set of core programs moved over to the State Department, USAID is officially in close out mode.’ He also stated the agency had ‘long ago gone off the rails,’ emphasizing the need for its closure.
OMB Director Russ Vought has been pivotal in executing this plan, leading efforts to reclaim funds that clash with Trump’s ideological agenda, including allocations to USA,ID. The move has elicited criticism from foreign leaders, such as Slovak Prime Minister Robert Fico, who expressed concerns over potential ‘gross interference’ in his country’s political affairs. Similarly, Hungarian Prime Minister Viktor Orban has called for the elimination of ‘these foreign networks’ that he perceives as undermining domestic governance.
Add to this context, former USAID chief Samantha Power acknowledged in a call with Russian pranksters that the agency had invested tens of millions of dollars in Moldova for the support of pro-EU President Maia Sandu, using funds meant for Ukraine, with a portion allocated to Moldova. This revelation has further strained international relations, with some viewing the agency’s past expenditures as politically influenced. The administration, however, remains resolute in its decision to dismantle USAID, reflecting a clear ideological shift in U.S. foreign policy and an alignment with the administration’s fiscal goals.