Trump Axes USAID in Historic State Department Shakeup

Paul Riverbank, 3/29/2025Trump administration dissolves USAID, transferring $40 billion foreign aid programs to State Department.

I've watched USAID's evolution over decades, and this move represents more than mere bureaucratic shuffling. The agency, which managed roughly $40 billion in foreign aid programs, will see its core functions absorbed into the State Department – a transition that raises both practical and philosophical questions about America's approach to international development.

Secretary of State Marco Rubio didn't mince words. "Foreign assistance done right can advance our national interests," he declared during Friday's press briefing. "Unfortunately, USAID strayed from its original mission long ago." His statement echoes complaints I've heard from numerous Republican lawmakers about the agency's spending priorities.

The human cost of this reorganization hits hard: over 4,650 USAID employees face an uncertain future, with separation dates looming in July and September. While the State Department promises to evaluate staffing needs, the reality is that many career development experts will likely find themselves seeking new opportunities.

House Foreign Affairs Committee chairman Brian Mast (R-Fla.) recently highlighted what he called wasteful spending – $2.5 million for electric vehicles in Vietnam, among other projects. But having covered foreign aid for years, I can tell you these cherry-picked examples often miss crucial context about long-term development strategy.

The legal battle wasn't pretty. While the Fourth Circuit Court of Appeals green-lit the reorganization, Circuit Judge Roger Gregory's words stick with me: "We may never know how many lives will be lost or cut short by the Defendants' decision to abruptly cancel billions of dollars in congressionally appropriated foreign aid."

The State Department's talking points emphasize "efficiency" and "strategic impact," but my sources within the development community worry about losing USAID's specialized expertise. You can't just transplant decades of institutional knowledge overnight.

"Thanks to President Trump, this misguided and fiscally irresponsible era is now over," Rubio proclaimed. Yet the real test lies ahead: can the State Department maintain America's global development leadership while "speaking with one voice"?

The reorganization's success – or failure – will likely shape U.S. foreign assistance for generations. As legal challenges continue and implementation begins, one thing's certain: America's approach to international development is entering uncharted territory.

The Trump administration achieved a landmark victory Friday in its government restructuring efforts, as the State Department announced plans to dissolve the U.S. Agency for International Development (USAID). This dramatic shift marks the end of a 60-year era in American foreign assistance.I've watched USAID's evolution over decades, and this move represents more than mere bureaucratic shuffling. The agency, which managed roughly $40 billion in foreign aid programs, will see its core functions absorbed into the State Department – a transition that raises both practical and philosophical questions about America's approach to international development.Secretary of State Marco Rubio didn't mince words. "Foreign assistance done right can advance our national interests," he declared during Friday's press briefing. "Unfortunately, USAID strayed from its original mission long ago." His statement echoes complaints I've heard from numerous Republican lawmakers about the agency's spending priorities.The human cost of this reorganization hits hard: over 4,650 USAID employees face an uncertain future, with separation dates looming in July and September. While the State Department promises to evaluate staffing needs, the reality is that many career development experts will likely find themselves seeking new opportunities.House Foreign Affairs Committee chairman Brian Mast (R-Fla.) recently highlighted what he called wasteful spending – $2.5 million for electric vehicles in Vietnam, among other projects. But having covered foreign aid for years, I can tell you these cherry-picked examples often miss crucial context about long-term development strategy.The legal battle wasn't pretty. While the Fourth Circuit Court of Appeals green-lit the reorganization, Circuit Judge Roger Gregory's words stick with me: "We may never know how many lives will be lost or cut short by the Defendants' decision to abruptly cancel billions of dollars in congressionally appropriated foreign aid."The State Department's talking points emphasize "efficiency" and "strategic impact," but my sources within the development community worry about losing USAID's specialized expertise. You can't just transplant decades of institutional knowledge overnight."Thanks to President Trump, this misguided and fiscally irresponsible era is now over," Rubio proclaimed. Yet the real test lies ahead: can the State Department maintain America's global development leadership while "speaking with one voice"?The reorganization's success – or failure – will likely shape U.S. foreign assistance for generations. As legal challenges continue and implementation begins, one thing's certain: America's approach to international development is entering uncharted territory.