State Department will absorb remaining USAID programming as independent agency is dismantled

FIRST ON FOX: The State Department is absorbing the remaining operations and programs U.S. Agency for International Development (USAID) runs, upending its function as an independent agency, according to an internal USAID memo obtained by Fox News Digital.  

While USAID historically has functioned as an independent agency that works to deliver aid to impoverished countries and development assistance, President Donald Trump appointed Secretary of State Marco Rubio to serve as acting administrator of the organization in February amid concerns that USAID did not advance U.S. core interests. 

Now, the State Department is poised to officially take on USAID programs as part of a merger that aims to streamline operations to deliver foreign assistance, the memo said. It also will result in cuts for thousands of USAID employees. 

“By bringing USAID’s core life-saving and strategic aid programs under the umbrella of the State Department, this Administration will significantly enhance the efficiency, accountability, uniformity, and strategic impact of foreign assistance programs — and ensure that our nation and President to speaks with one voice in foreign affairs,” Jeremy Lewin, who is performing the duties of USAID Deputy Administrator for Policy and Programming & Chief Operating Officer, said in a Friday statement to Fox News Digital. 

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An American flag and USAID flag fly outside the USAID building in Washington, D.C., U.S., February 1, 2025.  (Annabelle Gordon/Reuters)

As a result, the State Department is moving to “retire” USAID as an independent operation and is moving forward with plans for a reduction in force, according to the memo. Altogether, more than 4,650 USAID personnel will be cut from USAID, according to a State Department senior official. Personnel will start to receive notices Friday regarding their status at USAID with separation dates either on July 1 or Sept. 2. 

Between those three months, the State Department will take on responsibility for USAID programming, and will assess staffing requirements to proceed with an independent hiring process. Eligible USAID employees may apply for those positions as remaining USAID personnel move to shut down or transfer USAID operations to the State Department. 

“A separate process will be established for hiring personnel into available roles at the State Department,” the USAID memo said. “While the details are still being finalized, we are committed to sharing additional information as soon as it becomes available, likely in April or May.” 

The announcement comes as the Trump administration has moved to shutter USAID amid widespread government cuts stemming from the Department of Government Efficiency (DOGE) that SpaceX and Tesla CEO Elon Musk is leading. 

USAID has come under scrutiny amid DOGE’s cuts for wasteful spending that didn’t align with the Trump administration, including funding a $1.5 million program aimed to “advance diversity, equity and inclusion in Serbia’s workplaces and business communities and a $70,000 program for a “DEI musical” in Ireland.

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Secretary of State Marco Rubio announced March 11 that the vast majority of USAID programs would be canceled.  (Evelyn Hockstein/Pool/Reuters)

Rubio said March 11 that the State Department had concluded a six-week review and would cancel more than 80% of USAID programs. That translates to an elimination of roughly 5,200 of USAID’s 6,200 programs. 

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“Foreign assistance done right can advance our national interests, protect our borders, and strengthen our partnerships with key allies,” Rubio said in a statement to Fox News Digital Friday. “Unfortunately, USAID strayed from its original mission long ago. As a result, the gains were too few and the costs were too high.” 

“We are reorienting our foreign assistance programs to align directly with what is best for the United States and our citizens,” Rubio said. “We are continuing essential lifesaving programs and making strategic investments that strengthen our partners and our own country.”