State Department Absorbs USAID in Major Foreign Aid Restructuring

By Marcus Bennett

April 28, 2025 at 06:55 PM

The State Department has officially shut down the United States Agency for International Development (USAID), consolidating all foreign aid operations under its direct control. This marks the end of USAID's 60-year mission as America's leading development and humanitarian assistance agency.

State Department USAID Closure Notice

State Department USAID Closure Notice

The closure follows unsuccessful legal challenges and has received support from key figures, including former President Trump and Elon Musk, who advocated for reducing government redundancy. Secretary of State Marco Rubio characterized the move as a necessary modernization effort.

Key Changes:

  • All USAID staff positions terminated
  • Ongoing projects transferred to State Department bureaus
  • No new USAID grants or programs will be initiated
  • Existing contracts under case-by-case review
  • Operations consolidated under State's Bureau of Global Affairs and Public Diplomacy

USAID's Legacy:

  • Founded in 1961 under President Kennedy
  • Operated in over 100 countries
  • Managed $20+ billion annual budget
  • Led programs in public health, democratic governance, agriculture, and disaster response

Critics, including Senator Tim Kaine and Representative Barbara Lee, warn the closure might weaken America's global humanitarian leadership and result in lost institutional expertise. The State Department maintains this restructuring will create a more efficient approach to foreign assistance under unified leadership.

The transition team is currently overseeing the transfer of USAID's essential functions to ensure continuity of critical international aid programs while streamlining operations under State Department authority.

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