Trump Administration Considers Placing USAID Under State Department: Report

Trump Administration Considers Placing USAID Under State Department: Report

The Trump administration is exploring the possibility of removing the U.S. Agency for International Development (USAID) from its independent status and integrating it under the control of the State Department, according to two sources familiar with the discussions. This move would represent a significant shift in how the U.S. manages foreign aid.

The National Security Council discussed this idea earlier this week, and while no final decision has been made, a U.S. official confirmed that the possibility is under review.

The administration recently froze U.S. foreign aid, citing a need to reassess how billions of dollars in assistance are allocated in accordance with President Trump’s “America First” policy and to ensure taxpayer money is not wasted.

One source noted that the White House is investigating the legal authority Trump could use to issue an executive order to revoke USAID’s autonomy, with the potential for such an order to be signed as early as Friday night or Saturday.

Senator Chris Murphy, a member of the Senate Foreign Relations Committee, posted on X (formerly Twitter) that “USAID’s future will be watched closely.” It remains unclear whether Trump has the legal power to bypass Congress and dissolve USAID’s independence.

Senate Minority Leader Chuck Schumer expressed concerns over the idea, calling it "illegal and against our national interests," following rumors that Trump might dissolve USAID as a standalone agency.

Photographs reviewed by Reuters indicated that USAID offices have removed plaques bearing the agency's official seal, suggesting that a merger with the State Department is being considered.

The White House and USAID did not immediately respond to requests for comment, and the State Department referred questions to USAID. Sources also revealed that officials from the newly formed Department of Government Efficiency, led by Elon Musk, have been involved in discussions about the potential merger and visited USAID’s Washington headquarters.

Since taking office on January 20, Trump has issued a series of executive orders aimed at restructuring the federal bureaucracy, claiming it has worked against him during his first term.

Should USAID be absorbed by the State Department, the impact could be significant for global aid programs. A source familiar with USAID operations noted that the move could especially affect its humanitarian efforts. USAID has often been able to provide assistance to countries like Iran, with which the U.S. has no diplomatic ties, helping to foster goodwill. This could be jeopardized if its operations were aligned solely with political goals.

If the merger goes ahead, it would eliminate the Cabinet position for USAID administrator, a role created by former President Joe Biden. Trump has yet to appoint a new USAID administrator, adding to concerns that he may be considering ending the agency’s independence.

Trump’s freeze on foreign aid has already disrupted the development sector, leading to hundreds of layoffs and putting thousands of jobs at risk. Programs that provide critical services, such as field hospitals in refugee camps and HIV treatments, are among those facing potential cuts.

In fiscal year 2023, the U.S. distributed $72 billion in foreign assistance, covering a wide range of initiatives, from women's health in conflict zones to energy security and anti-corruption efforts. The U.S. accounted for 42% of all global humanitarian aid in 2024, according to United Nations data.

Trump’s recent executive order prompted the State Department to issue stop-work directives for most foreign aid, except for emergency food assistance, in a move that experts warned could lead to fatalities.

Secretary of State Marco Rubio later issued a waiver for "life-saving humanitarian assistance" while the 90-day review initiated by Trump continues.

Current and former USAID officials have suggested that the ongoing reshuffling of senior staff at the agency appears to be aimed at quashing any opposition. A former senior USAID official described the move to bring the agency under the State Department as a “seismic shift,” warning that it would diminish the influence of humanitarian priorities in U.S. policy decisions.

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