USAID Cut to Almost Nothing as State Department Takes Over Aid Distribution

As of July 1, the State Department is administering all foreign aid programs previously run by the U.S. Agency for International Development (USAID), with USAID “ceasing to implement foreign assistance.”

This comes after the Trump Administration and the Department of Government Efficiency (DOGE) worked to dismantle the agency within days of taking office, and some of those actions still under court review. 

In a Substack post titled “Making Foreign Aid Great Again,” Secretary of State Marco Rubio wrote that change is needed because USAID “has little to show since the end of the Cold War. Development objectives have rarely been met, instability has often worsened, and anti-American sentiment has only grown.”

Going forward, Rubio writes that foreign aid from the U.S. will advance America First interests, will align with administration policies, and “will be delivered with more accountability, strategy, and efficiency.”

While USAID is no longer administering foreign assistance, congressional approval is required to officially abolish the agency. As of the start of July, 94 percent of the staff at USAID has been cut by the Trump administration. 

Presidential Reactions

The decision was met with anger including from former Presidents George W. Bush and Barack Obama and U2 singer Bono, who noted USAID’s impact over the years in countries around the world, and its help with fighting and preventing diseases, famine, sanitation, and other issues.  

“Gutting USAID is a travesty, and it’s a tragedy. Because it’s some of the most important work happening anywhere in the world,” said Mr. Obama in a recorded statement. 

USAID’s Impact

A study published in The Lancet found that USAID helped prevent 91 million deaths worldwide between 2001 and 2021. That includes cutting in the number of deaths in half from HIV/AIDS, malaria, and tropical diseases. 

The study projects that dismantling USAID would lead to 14 million additional deaths by 2030 that could have been prevented, including 4.5 million children. 

The State Department says the study does not reflect the administration’s new vision for foreign assistance and is not what “we’re hearing on the ground.”

However, former USAID officials tell NPR getting a new aid program off the ground is easier said than done. 

“I think the State Department's the finest diplomatic institution in the world," said Andrew Natsios, Administrator of USAID under President George W. Bush "However, it's not an aid institution. That's completely different."