USAID’s Legacy Ends as Trump Administration Consolidates Foreign Aid Under State Department

The decision to dissolve USAID followed a months-long federal investigation into mismanagement and inefficiency, led by the Department of Government Efficiency (DOGE), an agency created under President Donald Trump to identify wasteful spending. Former DOGE director Elon Musk had characterized USAID as “a viper’s nest of bureaucracy,” while promising reforms that would streamline foreign assistance programs.

As of July 1, USAID’s responsibilities have been formally transferred to the U.S. State Department, with Secretary of State Marco Rubio announcing the change as part of a broader effort to ensure accountability and fiscal discipline in America’s international aid programs. “This era of government-sanctioned inefficiency has officially come to an end,” Rubio stated, adding that future aid initiatives would focus more directly on advancing U.S. strategic interests.

President Trump, who has frequently criticized what he viewed as excessive government spending abroad, highlighted USAID in a March address to Congress while celebrating $22 billion in identified federal waste. He cited a series of grant examples as evidence of misplaced priorities, arguing that taxpayer funds should instead serve programs aligned with American goals.

Founded in 1961 under President John F. Kennedy, USAID became the principal agency for administering foreign aid, supporting global health, economic development, and humanitarian initiatives across more than 100 countries. Its closure marks one of the most significant structural shifts in U.S. foreign policy in recent decades.

While critics warn that the move could reduce America’s influence abroad and disrupt ongoing aid programs, supporters of the reorganization contend that integrating operations under the State Department will provide stronger oversight, clearer accountability, and a renewed focus on measurable outcomes.

The end of USAID closes a major chapter in U.S. diplomacy—one defined by both its achievements and the debates surrounding how America engages with the world.