The Trump administration is moving forward with a sweeping overhaul of U.S. foreign aid, ordering the withdrawal of nearly all U.S. Agency for International Development (USAID) employees from the field and placing thousands of staffers on leave. The directive, issued late Tuesday, effectively halts American-funded humanitarian and development work across more than 120 countries, marking a dramatic shift in U.S. foreign policy.
A statement posted on the USAID website-which had been taken offline over the weekend-announced that as of Friday at 11:59 p.m. ET, all direct-hire personnel will be placed on administrative leave, except for those deemed responsible for mission-critical functions, core leadership, and designated programs. Employees stationed abroad must return to the U.S. within 30 days, and non-essential contractors will have their contracts terminated.
The mass withdrawal is part of a broader effort spearheaded by Trump officials and Elon Musk's Department of Governmental Efficiency, which has sought to eliminate USAID as an independent agency and consolidate its functions under the State Department. The move follows Trump's executive order freezing all foreign aid for 90 days, which has already triggered program shutdowns, layoffs, and widespread disruptions in global humanitarian efforts.
USAID Shutdown Triggers Immediate Fallout
The decision to withdraw direct-hire employees ahead of schedule is expected to cost the government tens of millions of dollars in relocation expenses. Programs related to clean water access, job training, and disaster relief will be effectively shut down, and food and medical supplies already delivered by U.S. companies sit in ports, unable to be distributed.
Among the most critical aid efforts affected by the sudden halt:
- HIV/AIDS programs credited with saving more than 20 million lives in Africa.
- Global health security efforts, including monitoring and rapid-response teams for Ebola outbreaks.
- Humanitarian support for Ukraine, where USAID has played a key role in post-war reconstruction.
- Educational aid for Afghan schoolgirls living under Taliban rule.
Critics say the move also undermines American strategic influence, particularly in countering China and Russia's growing global footprint. The U.S. has long been the world's largest humanitarian donor, but the Trump administration has repeatedly questioned the value of foreign aid, calling much of it wasteful spending.
Congressional Backlash and Legal Challenges
Democratic lawmakers and foreign policy experts have denounced the effort to dismantle USAID, arguing that it is illegal for a president to unilaterally abolish or consolidate the agency without congressional approval.
A report from the Congressional Research Service affirmed this position, stating: "Because Congress established USAID as an independent agency within the executive branch, the President does not have the authority to abolish it without congressional authorization."
The American Foreign Service Association, the union representing U.S. diplomats, is preparing legal action to challenge the decision. USAID employees have been instructed to cease all agency activities immediately and are prohibited from accessing government systems, emails, or USAID premises.
Musk Boasts of 'Dismantling' USAID
Tech billionaire Elon Musk, who has been leading the Trump administration's efficiency overhaul, took credit for the move. "Spent the weekend feeding USAID into the wood chipper," Musk wrote on X (formerly Twitter).
Musk has previously called USAID a "criminal organization", branding it a "viper's nest of radical-left Marxists who hate America" and arguing that the U.S. should not be funding global aid projects. His remarks have further inflamed tensions in Washington, where lawmakers are pushing for an investigation into the legality of his involvement in federal agency restructuring.
State Department's Role and Rubio's Response
As part of the takeover of USAID operations, Secretary of State Marco Rubio has assumed the role of acting administrator of the agency, cementing its de facto absorption into the State Department.
Rubio, who has long supported foreign aid in principle, defended the administration's position, stating, "Foreign aid is not charity. Every dollar we spend must advance U.S. national interests."
During his Central America tour this week, Rubio met with USAID staffers in El Salvador and Guatemala, though journalists were barred from attending these sessions. While he praised their dedication and service in Panama over the weekend, his comments were noticeably absent from his later meetings.
Chaos Within USAID and Employee Uproar
The sudden recall has left USAID employees in turmoil, with many reporting last-minute travel and relocation uncertainties. Staffers have described chaotic conditions, as some are being forced to pull their children out of school mid-year while others scramble to rehome pets due to uncertainty over relocation timelines.
One USAID official, placed on leave Tuesday, described the situation as "hysteria." Speaking anonymously, the official told CNN, "People are hysterical. My friends are crying. We don't know what's going on...No access to any government system; can't see emails. It's like we're criminals."
Tuesday's directive promised case-by-case exceptions for employees requiring more time to return, but with most USAID offices already closed, it remains unclear who will process these requests.
The shutdown also jeopardizes international partnerships, with foreign staffers-who make up a significant portion of USAID's workforce-having little recourse. Locally employed staff have been excluded from severance packages, leaving them in financial and professional limbo.
Trump Signals Further Cuts to Foreign Aid
Asked by reporters Tuesday whether he intended to fully dismantle USAID, Trump laughed and responded, "Sounds like it." He then praised Musk's investigation into waste and fraud within the agency, stating, "It has to be corrupt."
Trump's sweeping 90-day freeze on foreign aid remains in effect, leaving billions of dollars in unspent funds at risk of being reallocated or canceled altogether.