After nearly six decades of operation, the United States Agency for International Development (USAID) has officially ceased to exist as of July 1, 2025. The decision by President Donald Trump’s administration concluded that the agency no longer served U.S. interests effectively. From now on, foreign aid programs aligned with U.S. policy will be managed directly by the State Department under the supervision of Secretary Marco Rubio.
According to a statement released by Rubio’s office, “On July 1st, USAID will officially stop disbursing foreign aid. Programs that align with the policies of the Trump administration and serve American interests will be managed by the State Department, where they will be implemented with greater accountability, strategy, and efficiency.”
This marks the end of an era for USAID at a time when a global study published in *The Lancet* warns that cuts to U.S. foreign aid could lead to over 14 million additional preventable deaths by 2030—nearly one-third of which would be children.
The remnants of USAID have been absorbed into the State Department, signaling a major shift in how the U.S. administers its international development assistance. Rubio defended the move, stating, “Outside of creating a costly global network of NGOs on the taxpayers’ dime, USAID hasn’t accomplished much since the Cold War ended.”
The announcement coincided with an international development financing conference held in Spain, attended by global leaders—but not the United States. Former Presidents George W. Bush and Barack Obama, along with musician Bono, praised USAID’s legacy in farewell messages. Obama called the dissolution “inexplicable” and warned it would go down in history as a “colossal mistake.”
Trump first sought to dismantle USAID shortly after returning to the White House in January, accusing the agency of wasteful spending and promoting values contrary to U.S. interests. On Inauguration Day, he signed an executive order freezing all U.S. foreign aid pending a review to ensure compliance with his administration’s policies—particularly those related to abortion, family planning, inclusion, and diversity.
The freeze shocked the international development community. Founded by President John F. Kennedy in 1961, USAID managed an annual budget of $42.8 billion, accounting for 42% of global humanitarian aid. Its sudden shutdown has left many UN agencies and NGOs struggling to compensate for the loss of critical funding.
In May, speaking before a congressional committee, Rubio rejected claims that people would die due to aid reductions, calling such studies based on “flawed assumptions” and asserting that vital aid would continue through the State Department.