The State Department announced on Friday the closure of the U.S. Agency for International Development, marking a significant blow to the struggling foreign aid agency. This decision was made just hours before a federal appeals court overturned a lower court ruling that had blocked Elon Musk and his Department of Government Efficiency from dismantling USAID. In a memo addressed to USAID employees and obtained by ABC News, Jeremy Lewin, the agency’s new deputy director and a former Department of Government Efficiency official, stated that the State Department plans to take over many of USAID’s functions and ongoing programs. The memo also mentioned the possibility of rehiring some officials to manage the remaining aid programs. The transfer of responsibilities aims to improve efficiency, accountability, uniformity, and strategic impact in delivering foreign assistance programs. This move will eliminate all non-statutory positions at USAID. The decision to dissolve a federal agency completely is expected to face legal challenges, as it typically requires congressional approval. Secretary of State Marco Rubio confirmed that the administration is officially transitioning foreign aid operations to the State Department, aligning them with the best interests of the United States and its citizens. Critics argue that the administration’s actions will weaken American influence globally and have negative consequences.
For some of the world’s most vulnerable populations who depended on U.S. funding for healthcare, food, and other essential needs, there is a reorganization plan in place. The State Department, with input from USAID leadership, has informed Congress of their intention to reorganize some USAID functions within the State Department by July 1 of this year. However, the move to eliminate USAID and reduce its staff is facing legal challenges in various court cases.
