This announcement continues a major reorganization that the USAID has been addressing as directed by the Trump administration. This courageous act is sending tremors across the global aid sector. USAID, created by the Foreign Assistance Act of 1961, has been formally and statutorily under the secretary of state. In Fiscal Year 2023, it served as the primary distribution channel for U.S. foreign aid, administering roughly half – around $36 billion of $72 billion total – U.S. foreign aid. Despite its pivotal role, USAID has faced massive layoffs, with 1,600 employees losing their jobs on Friday, leaving only a handful of staff members. At least two-thirds of those left have either been terminated, suspended or placed on administrative leave, including employees assigned overseas.
The plan’s reorganization agenda would combine USAID’s independent policy functions into the Department of State, dramatically removing them from any congressional oversight by placing them under executive control. The fallout from the restructuring has led to the shuttering of USAID’s headquarters in Washington, DC. Workers had just 15 minutes to collect their things before being escorted out. There is a concern among critics that the Trump administration is overreaching its executive authority to disband an entire department, like USAID. Officials are quick to stress that the agency’s essential lifesaving aid programs are untouched and going strong. Contracts have been widely affected, with 83 percent of contracts being canceled.
Restructuring Amid Layoffs and Criticism
Even as USAID is confronting this development, the agency has unfortunately been the victim of drastic personnel cuts. An internal memo cautioned staff that all positions would be subject to elimination except those mandated by statute. As part of this large-scale reorganization at USAID, all of the agency’s contracts have been terminated too, covering 83 percent of its agreements. Though these changes have raised many eyebrows, leadership wants to assure everyone that their ability to respond to disasters abroad is not affected by these changes.
“Like any restructuring, there will inevitably be disruptions from Secretary Rubio down. We are committed to ensuring that USAID personnel remain safe and that the agency’s ongoing lifesaving aid programmes remain both intact and operational.” – Tammy Bruce
Critics on both sides of the aisle claim that with these drastic measures, the Trump administration is overstepping its bounds. Administration officials claim that these measures are necessary. They are convinced that if they do these things, foreign aid will be distributed far more efficiently and effectively.
Operational Continuity Amid Organizational Changes
Even through all of the structural and personnel changes, acting strategically in response to international emergencies is USAID’s most important priority. The agency continues to play an essential role in international disaster response efforts, such as providing aid following earthquakes in Myanmar and Thailand. Officials say the continued realignment won’t affect these essential functions.
“We are ready to move now. So there has been no impact on our ability to perform those duties, those requests for aid if and when they come in,” – Tammy Bruce
In defending the reorganization, Secretary of State Marco Rubio even admitted that disruptions are likely. He stressed that they are making accommodations in the near term to ensure the worst impacts don’t threaten USAID’s chief missions.
Executive Control and Future Implications
The other real change is the consolidation of USAID functions under the Department of State. This new approach changes the game for how the U.S. conducts foreign assistance. The cut is in step with the Trump administration’s overall goal of eliminating what it calls unnecessary government functions. It does beg the question of how aid is going to be distributed moving forward and how development efforts will be coordinated.
“With any major change, there’s going to be disruption,” – Tammy Bruce
USAID is undergoing a remarkable change in the way it operates. Observers and stakeholders are keeping a watchful eye on how implementation of these changes will affect global aid initiatives and the agency’s long-term role in international development.
