US Government’s plan to officially shut USAID

U.S. Agency for Internal Development positions that are not mandated by law, according to a memorandum sent to agency staff on Friday, March 28, 2025, will be eliminated.

This comes as the Trump administration seeks to largely fold the agency into the State Department.

BBC reports that employees will be laid off under reduction in force procedures.

This will take place on either July 1 or Sept. 2, which also are key dates for terminating agency programming or transferring it to the State Department.

In the meantime, the Trump administration is asking staff to assist with the transition.

“As you can imagine, there will be lots of work to responsibly migrate operations and responsibility to the State Department.

“We would like to offer every USAID employee the opportunity to participate in that important work, if they so choose.

“At the same time, we understand that many of you may prefer to take time to focus on your families and future,” the memo read.

It came from Jeremy Lewin, an agency official who used to work for the Elon Musk-backed Department of Government Efficiency.

On Saturday, USAID employees will be able to select whether they want to remain on active duty or go on administrative leave.

The memo stated that the State Department will hire individuals as it assumes USAID’s life-saving and strategic aid functions.

It also stated that USAID employees will be eligible for such opportunities.

It also said that agency employees who have already been laid off will receive a superseding RIF with a separation date of July 1 or Sept. 2.

This it says, is to ensure they have “the same notice, severance and return travel periods as the rest of the agency’s workforce.

It is also to ensure that they retain the same eligibility for any potential State Department hiring.

Lewin wrote that overseas employees will have “safe and fully compensated return travel.”

The Trump administration argued that moving most of USAID into the State Department will:

• “enhance efficiency, enhance
• accountability,
• enhance uniformity and strategic impact in delivering foreign assistance programs, allowing the US and President Trump to speak with one voice in foreign affairs.”

A district judge on March 18 ordered the Trump administration to pause its efforts to dismantle USAID.

However, an appeals court suspended the lower court’s ruling from at least Tuesday to Thursday.

After the Trump administration began eliminating USAID, the Congressional Research Service in February reported that congressional authorization is necessary to abolish, move or consolidate the agency.

Two weeks ago, a federal district judge said the shutdown would deprive Congress of its constitutional authority on whether to close an agency.

President John F. Kennedy signed the legislation creating the agency in 1961.

President Donald Trump on Feb. 4 named Secretary of State Marco Rubio to serve as acting administrator of the organization, which initially had 5,200 employees.

On Friday, Rubio said the remaining 900 employees will be terminated.

Rubio said in a statement,

“Today, the Department of State and the U.S. Agency for International Development (USAID) have notified Congress on their intent to undertake a reorganization that would involve realigning certain USAID functions to the Department by July 1, 2025, and discontinuing the remaining USAID functions that do not align with Administration priorities.”

On his first day back in the White House, President Donald Trump ordered a 90-day freeze of all U.S. foreign aid.

He also ordered a review of whether aid programs were aligned with his administration’s policy.

On March 10, Rubio terminated some 5,200 contracts. The remaining 18% of the programs were to be taken over by the State Department.

Some programs to be canceled provided for nutrition assistance for infants in developing countries.

They also provided for treatments and prevention of diseases such as polio, malaria, tuberculosis, Ebola and HIV.

USAID distributed nearly $43.8 billion in aid in 2023.

In all, the U.S. government disbursed $71.9 billion in foreign assistance, about 1.2% of the total budget according to ForeignAssistance.gov.

Jeremy Lewin, a Department of Government Efficiency employee, took over running the day-to-day operations at USAID from Pete Marocco on March 20.

“In the next three months, we will work closely with the State Department to build their capacities to assume the responsible administration of USAID’s remaining life-saving and strategic aid programming.”

Rubio said he expects aid to be better handled.

“Foreign assistance done right can advance our national interests, protect our borders and strengthen our partnerships with key allies,” Rubio said.

“Unfortunately, USAID strayed from its original mission long ago.

As a result, the gains were too few and the costs were too high.”

He added: “Thanks to President Trump, this misguided and fiscally irresponsible era is now over.

“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.

This is yet another promise made and delivered to the American people.”

On March 18, a federal judge ruled that efforts by Elon Musk and his Department of Government Efficiency to shut down USAID “likely violated the U.S. Constitution in multiple ways.”

U.S. District Judge Theodore Chuang, who was appointed by Barack Obama, ordered DOGE to reinstate USAID employee and contractors’ access to email, payment and other electronic systems, according to the 68-page ruling.

He added: “Thanks to President Trump, this misguided and fiscally irresponsible era is now over.

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.

This is yet another promise made and delivered to the American people.”

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