The Trump administration formally notified Congress on Friday that it will dissolve the U.S. Agency for International Development (USAID), transferring key functions to the State Department and terminating other programs altogether. The move follows months of staffing reductions and budget cuts and comes despite a federal judge's recent ruling that the shutdown violates congressional authority.
In a memo to USAID employees obtained by ABC News, the agency's deputy director, Jeremy Lewin, stated that the State Department "intends to assume responsibility for many of USAID's functions and its ongoing programming." The memo added that "all non-statutory positions at USAID will be eliminated," with some officials potentially reassigned as the department evaluates which humanitarian programs to retain.
"This transfer will significantly enhance efficiency, accountability, uniformity, and strategic impact in delivering foreign assistance programs - allowing our nation and President to speak with one voice in foreign affairs," the memo said.
Secretary of State Marco Rubio, who has overseen the effort alongside tech executive Elon Musk's Department of Government Efficiency (DOGE), issued a statement framing the move as a long-overdue realignment of U.S. foreign assistance strategy. "Thanks to President Trump, this misguided and fiscally irresponsible era is now over," Rubio said. "We are reorienting our foreign assistance programs to align directly with what is best for the United States and our citizens."
"We are continuing essential lifesaving programs and making strategic investments that strengthen our partners and our own country," Rubio added.
Congress, which created USAID in 1961 under President John F. Kennedy, has not authorized its dissolution. Earlier this month, a federal judge ruled that the executive branch's unilateral attempt to shutter the agency deprives Congress of its constitutional role in determining the future of agencies it has established.
Despite that ruling, the State Department informed lawmakers on Friday that the reorganization would proceed, with many USAID responsibilities expected to be transferred by July 1. The agency's longstanding Washington, D.C., headquarters has been vacated, and more than 80% of program funding has been revoked.
The dismantling of the world's largest bilateral aid agency has drawn sharp criticism from foreign policy experts and humanitarian organizations, which warn that the U.S. is ceding diplomatic influence and jeopardizing millions of lives.
