Secretary of State Marco Rubio announced a substantial restructuring of the United States Agency for International Development (USAID), canceling 83% of its programs, and the decision marks the end of a comprehensive six-week review by the Department of Government Efficiency.
The Donald Trump-backed restructuring aims to improve efficiency and better align foreign aid management, with remaining programs shifted to the purview of the State Department, as Fox News reports.
Rubio stated that the terminated contracts were worth "tens of billions of dollars." According to him, these funds were being used inefficiently and, in some cases, flatly hindered national interests. He conveyed his gratitude to the Department of Government Efficiency (DOGE) for its extensive efforts in executing these reforms, commending the staff for working "very long hours" to bring about this "overdue and historic reform."
DOGE, associated with billionaire Elon Musk, played a critical role in evaluating the efficacy of USAID programs during the review. A heated exchange reportedly took place between Rubio and Musk in a Cabinet meeting, with President Donald Trump present. However, Trump defended Rubio, asserting he was doing a "great job" and later clarified on Truth Social that Rubio and Musk "have a great relationship."
Despite the discussions reportedly becoming tense, Musk expressed his approval of the reorganization. Musk described the process as "tough but necessary," indicating that essential aspects of USAID should have always been managed by the State Department.
The Trump administration has historically targeted USAID, pausing foreign assistance programs shortly after taking office. Musk's criticism of the agency as "beyond repair" included equating its funding methods to illegal money laundering for left-leaning nonprofits, intensifying calls for reform.
The decision to dismantle the majority of USAID's programs and integrate the rest within the State Department came after consultations with Congress. It signifies a shift in how foreign aid will be administered, with a tighter grip to ensure protocol compliance and alignment with broader national goals.
Nevertheless, the restructuring has not proceeded without legal obstacles. Various lawsuits have emerged, aiming to halt USAID's dismantling. The complaints argue that such drastic changes may undermine critical foreign aid objectives and relationships cultivated over years. The judiciary has been engaged, with the Supreme Court mandating that the Trump administration resume $2 billion in foreign aid payments, having paused them amidst restructuring discussions.
In response to criticisms, Rubio emphasized the reform prioritized U.S. national interest, a notion earnestly echoed by DOGE. He defended the changes as necessary to correct an outdated and often inefficient system.
The cancellation and reassignment of USAID programs raise critical questions about the future of U.S. foreign aid. The consolidation under the State Department promises a centralized approach, with advocates hoping it leads to greater accountability and effectiveness. However, international allies and recipients of USAID are left in uncertainty about how these changes will affect existing programs and funding.
Despite statements from the government intended to reassure stakeholders, concerns persist. Countries once heavily reliant on USAID support for humanitarian and development assistance face an unclear transition period.
The United States' role in international aid has long been a pillar of its foreign policy strategy. The restructuring reflects a potential pivot, with international observers closely monitoring how the U.S. will continue engaging with global aid initiatives amid domestic reforms.
The spirited dialogue between Rubio, Trump, and Musk hints at the internal alignment being sought to streamline these efforts. With this restructuring, the world awaits to see if the changes will bolster efficiency or strain the aid mechanisms and relationships the U.S. has built over decades.
