In a sweeping overhaul of U.S. foreign aid policy, the Trump administration has announced the termination of 83% of the U.S. Agency for International Development’s (USAID) programs, transferring the remaining initiatives to the State Department. The decision, unveiled early Monday by Secretary of State Marco Rubio, marks one of the most significant shake-ups in the agency’s history.
“The 5,200 contracts that are now canceled spent tens of billions of dollars in ways that did not serve, and in some cases even harmed, the core national interests of the United States,” Rubio said in a statement on X (formerly Twitter). “In consultation with Congress, we intend for the remaining 18% of programs we are keeping (approximately 1,000) to now be administered more effectively under the State Department.”
The restructuring comes after a months-long effort led by the Department of Government Efficiency (DOGE), an office tasked with eliminating wasteful spending across federal agencies. Billionaire Elon Musk, who heads DOGE, spearheaded the dismantling of USAID, citing concerns over mismanagement and funding for projects that he and the administration deemed unnecessary or ideologically driven.
Massive Cuts to Foreign Aid Spending
Rubio, who took over as acting USAID administrator in February, initiated a full-scale review of the agency’s grants shortly after Musk launched his campaign to dismantle it. According to an internal State Department memo, first reported by National Review, the canceled contracts were part of 5,800 multi-year USAID projects, amounting to an estimated $54 billion in funding.
The memo further revealed that these cuts were part of a broader effort by the Trump administration to reassess U.S. foreign aid. President Trump, upon returning to office, had ordered a full review of overseas spending, resulting in a total of $60 billion in identified reductions.
Although Rubio did not specify which USAID programs would be retained under the State Department, the memo indicated that essential food assistance programs and healthcare initiatives, including medical treatments for tuberculosis, HIV, and malaria, would remain in place.
Musk, in response to Rubio’s announcement, posted on X: “Tough, but necessary. Good working with you. The important parts of USAID should always have been with Dept of State.”
Concerns Over Global Humanitarian Efforts
The decision to gut most of USAID’s operations has drawn criticism from humanitarian groups and foreign policy experts who argue that the agency plays a critical role in global health and disaster relief. Many expressed concern that the loss of USAID funding could destabilize regions dependent on U.S. aid, particularly in Africa and South Asia.
“This is an unprecedented rollback of America’s commitment to humanitarian assistance,” said Sarah Jensen, a former senior USAID official. “Programs that provide life-saving food, medical care, and education to millions of people will simply disappear. The long-term consequences could be devastating.”
Despite these concerns, Trump and his administration remain firm in their decision, arguing that taxpayer money should be spent more efficiently and with greater accountability.
Trump, Musk, and Rubio: An Uneasy Alliance?
Reports have surfaced of tensions between Musk and Rubio over the restructuring process. According to The New York Times, the two clashed during a recent cabinet meeting, where Trump was forced to intervene and clarify DOGE’s role in the administration.
“ELON AND MARCO HAVE A GREAT RELATIONSHIP. ANY STATEMENT OTHER THAN THAT IS FAKE NEWS!!!” Trump wrote on Truth Social on Saturday, seemingly responding to the reports of friction.
Despite Trump’s assurances, the president did make a significant policy adjustment in response to internal disagreements. While initially granting DOGE sweeping powers to restructure government agencies, Trump recently decided to limit its authority, allowing his cabinet officials to have the final say on hiring and spending decisions, with DOGE taking on a strictly advisory role.
This shift follows a series of high-profile missteps by DOGE, including the abrupt firing—and subsequent rehiring—of key government employees working on critical programs, such as the maintenance of America’s nuclear arsenal and healthcare for 9/11 survivors.
What Comes Next?
With USAID largely dismantled, the State Department will now take over the remaining aid programs. However, questions remain about how effectively it can manage these initiatives, given its primary focus on diplomacy rather than large-scale humanitarian assistance.
For now, the administration is framing the decision as a necessary step in cutting wasteful spending and refocusing American aid policy on what it sees as core national interests. But with growing backlash from lawmakers, foreign governments, and humanitarian organizations, the long-term impact of this move—both domestically and internationally—remains to be seen.
.jpeg)
