Trump Eyes Shake-Up at USAID: What to Know

The U.S. Agency for International Development (USAID) in Washington on Aug. 12, 2024. Madalina Vasiliu/The Epoch Times

President Donald Trump is eyeing a major shake-up at the U.S. Agency for International Development (USAID), the government agency responsible for distributing U.S. financial assistance to foreign nations.

Trump has long condemned U.S. intervention in global affairs, and his presidency now seems poised to significantly reform one of the federal agencies that critics have long seen as typifying globalism.

Reports suggest that Trump will wrap USAID into the State Department but the administration has been tight-lipped about the president’s plans on this so far.

Signs in recent days—like the termination of hundreds of contractors and employees at USAID and its subsidiaries, and the removal of USAID’s website—point towards a planned restructuring of the agency.

Here’s what to know about Trump’s unfolding shake-up at USAID.

What Is USAID?

Established in 1961, USAID largely manages the distribution of U.S. foreign aid to partner nations.

The agency’s initiatives include humanitarian response to natural disasters worldwide, global health initiatives, climate and environmental programs, and an array of other initiatives related to economics, governance, and education.

In 2023, the most recent year with full data available, USAID distributed around $36.8 billion in global aid—a $13.4 billion increase over the previous year. That same year, the U.S. government as a whole distributed $72 billion in assistance worldwide, putting USAID’s contribution at roughly half of all U.S. foreign aid.

Republicans regard USAID as one of the best examples of government waste, with many criticizing it for lacking transparency and oversight in how it spends its nearly $50 billion budget.

Democrats are more supportive of the agency, championing it as a source of life-saving assistance for those in need around the world.

Its international objectives put USAID as an institution in direct contradiction to Trump’s foreign policy aims—which emphasizes the prioritizing of American interests, and efficiency and transparency for taxpayer spending.

What’s Happening to the Agency?

Though nothing has been made official, there are looming warning signs for the agency.

On day one, Trump signed an executive order placing a 90-day moratorium on all U.S. foreign aid disbursements to allow for reevaluation of whether those payments align with U.S. interests.

Secretary of State Marco Rubio later allowed certain humanitarian aid to continue in the interim.

Between 800 and 900 contractors from the agency’s Global Health bureau and Humanitarian Assistance bureau have already been fired, a source familiar with the situation told The Epoch Times.

Other employees have been laid off as well, with the administration citing efforts by these employees “designed to circumvent the president’s executive orders.”

Trump wrote on Feb. 2 that the agency “has been run by a bunch of RADICAL LUNATICS and we’re getting them out ... and then we'll make a decision.”

Additionally, the agency’s website has gone dark, while USAID’s official X account was also deleted.

America First Allies Condemn USAID

Republicans have long been critical of USAID. Now, Trump’s America First allies are making a dedicated push to dismantle the agency.

“USAID is a criminal organization,” Elon Musk, SpaceX owner and top political ally to Trump, said in a post on X. “Time for it to die.”

White House Deputy Chief of Staff Stephen Miller said during an appearance on CNN that 98 percent of the agency’s workforce donated to former Vice President Kamala Harris or another left-wing candidate in 2024.

Others, including Sen. Rand Paul (R-Ky.) have pointed to USAID’s grants to China’s Wuhan Institute of virology, which is at the center of investigations about the origins of the COVID-19 pandemic.

Others simply see much of U.S. foreign aid as a waste of taxpayer money with too little oversight.

A Merger With State?

Now, many outlets are reporting that USAID is on track to be rolled into the State Department, in a significantly scaled-down capacity.

Outlets have reported that Trump is planning an executive order that would do just that but Trump and his allies have been tight-lipped about specifics.

Conservatives in Washington have long discussed the idea of merging the two organizations, with the idea being presented in the Heritage Foundation’s Project 2025.

House Foreign Affairs Chairman Brian Mast (R-Fla.) seemed to verify that Trump was inclined to go in this direction, saying in a Feb. 2 appearance on CBS that USAID “is likely to be going to be rolled more closely under Secretary Rubio.”

Mast said he was personally working with Rubio towards ensuring there was “appropriate command and control of these agencies.”

The chairman said he would support getting rid of USAID entirely but made clear that the Trump administration had not made a final decision on how to go about it.

Thus, specifics about how this merger would look remain to be determined. But it’s expected that both the amount of aid distributed and the employment rolls of USAID will take a hit from such an order.

Democrats Raise Legal Challenges

Democrats, longtime supporters of the agency, have already pushed back against Trump’s reported plan, saying that such an executive order would be illegal.

While it was created in 1961 via an executive order by President John F. Kennedy, the agency has been codified into law through Congress—raising constitutional questions about whether Trump would need Congress to act to dissolve the agency.

“Trump’s been purging and intimidating USAID employees. Now there’s a rumor he'll dissolve USAID as an independent agency,” Senate Minority Leader Chuck Schumer (D-N.Y.) said in a Jan. 31 post on X.

Schumer said that the agency was “established in law to further our national security and spread hope.”

He said that dissolving USAID would be “illegal and against our national interests.”

Others referenced the ongoing fight for the developing world between the United States, China, and Russia, arguing that aid disbursements handled by USAID serve U.S. geopolitical interests.