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The Trump administration has officially informed Congress of its plan to reorganize the United States Agency for International Development (USAID). This move comes as President Donald Trump faces legal challenges over his efforts to dismantle the agency.
USAID was created by Congress, but on Friday, Secretary of State Marco Rubio announced that the administration would bring USAID’s functions under the control of the State Department. This means USAID would no longer operate independently.
“We are adjusting our foreign aid programs to focus on what benefits the United States and its citizens the most,” Rubio stated on social media. He also assured that essential aid programs would continue while making targeted investments to support U.S. interests.
However, critics argue that Trump’s administration is overstepping its authority by attempting to shut down independent agencies that do not align with its goals.
State Department spokesperson Tammy Bruce addressed concerns at a press briefing. She confirmed that Congress had been notified of plans to restructure USAID by July 1, 2025. The changes would involve merging certain USAID functions into the State Department and eliminating others that do not match the administration’s priorities.
Bruce also reassured the public that this move would not affect the U.S.’s ability to respond to international disasters, such as the recent earthquakes in Myanmar and Thailand. “We are fully prepared to provide aid if needed,” she said.
USAID was originally established under the Foreign Assistance Act of 1961 and has historically operated under the Secretary of State’s oversight. Before Trump’s second term, USAID was one of the largest global providers of foreign aid. However, Trump significantly reduced foreign aid spending, freezing most assistance programs. In 2023, the U.S. gave around $72 billion in foreign aid, with USAID responsible for distributing nearly half of that amount.
Recently, Rubio announced that 83% of USAID’s contracts had been canceled. Additionally, USAID has been hit with significant layoffs, a trend that continued last Friday.
An internal memo sent to USAID employees revealed that most jobs would be eliminated, except for those required by law. During the press briefing, Bruce acknowledged that the layoffs would cause disruption but said they were expected. “We knew this was coming,” she said. “I can’t say exactly how many foreign service officers will be affected, but there will be major changes.”
She described the process as a restructuring effort and assured that USAID staff would remain safe while essential aid programs continue to function. The administration has linked the layoffs to a broader effort to eliminate waste and fraud, a project led by billionaire businessman and Trump adviser Elon Musk.
The job cuts at USAID have been ongoing. In February, around 1,600 employees were laid off, and most of the remaining staff were placed on leave, including those working overseas. The Washington, DC, headquarters was also shut down, and employees were given only 15 minutes to collect their belongings before being locked out.
The legality of dismantling USAID has been challenged in court. Earlier this month, a federal judge ruled that Musk and his Department of Government Efficiency (DOGE) had likely violated the U.S. Constitution by attempting to shut down USAID without congressional approval. Judge Theodore Chuang stated that Congress has the authority to decide the fate of agencies it creates, not the executive branch.
In response, the judge issued a temporary order blocking further layoffs and contract cancellations. However, on Friday afternoon, a federal appeals court lifted the order, allowing Musk and DOGE to continue with the cuts.
Musk has openly bragged about his role in shutting down USAID, once saying he was “feeding USAID into the wood chipper.” With the court’s latest ruling, the Trump administration’s push to restructure and downsize USAID is moving forward despite legal challenges.