State Department to Integrate USAID Operations Amid Major Agency Overhaul

FIRST ON FOX: The State Department is set to assume control over the remaining programs and operations of the U.S. Agency for International Development, effectively dismantling USAID’s status as an independent agency. This significant transition has been confirmed through an internal memo from USAID, which was obtained by Fox News Digital.

Historically, USAID has operated independently, focusing on delivering aid to impoverished nations and providing development assistance. However, President Trump took a different approach by appointing Secretary of State Marco Rubio as acting administrator of the agency in February. This shift arose from concerns that USAID was not effectively promoting U.S. core interests.

Merger for Streamlined Operations

The State Department is preparing to officially absorb USAID programs as part of a merger designed to enhance operational efficiency in delivering foreign aid. According to the internal memo, this restructuring will involve significant staff reductions, impacting thousands of USAID employees.

Jeremy Lewin, the USAID Deputy Administrator for Policy and Programming and Chief Operating Officer, articulated the administration’s perspective in a recent statement. Lewin noted that consolidating USAID’s vital humanitarian efforts under the State Department will improve the accountability and strategic impact of these foreign assistance programs. He emphasized the goal of ensuring that the U.S. government projects a unified voice in international matters.

Staff Reductions and Transition Details

With plans to retire USAID as an independent entity, the Department of State is advancing with a reduction in force that will affect over 4,650 personnel. Notifications regarding employment status began Friday, with separation dates set for July 1 or September 2.

As the transition unfolds over the next few months, the State Department will take on responsibility for USAID programs while evaluating staffing needs. There will be a separate hiring process for positions related to these programs, allowing eligible former USAID employees the opportunity to apply as staff members begin to transfer or close down their operations.

The USAID memo elaborated on the hiring process, stating that further details will be communicated as they are finalized, likely by April or May.

Controversial Cuts and Priorities

This announcement coincides with broader budget cuts instituted by the Trump administration, particularly through initiatives led by the Department of Government Efficiency, overseen by Elon Musk, CEO of SpaceX and Tesla. USAID has faced scrutiny for redundancies and programs deemed misaligned with current administration policies. Examples of criticized spending include a $1.5 million project aimed at promoting diversity, equity, and inclusion in Serbia, and a $70,000 funding initiative supporting a DEI-themed musical in Ireland.

Rethinking Foreign Assistance

On March 11, Rubio revealed that after a six-week review, the State Department plans to terminate more than 80% of USAID’s programs, which translates to a reduction of approximately 5,200 out of 6,200 initiatives.

In his statement to Fox News Digital, Rubio remarked that foreign assistance, when executed effectively, should advance national interests, bolster border security, and enhance relationships with key allies. He criticized the previous trajectory of USAID, explaining that it had deviated from its original objectives, leading to minimal gains coupled with exorbitant costs.

Rubio highlighted the administration’s commitment to realigning foreign assistance programs to better serve U.S. interests and citizens. He reaffirmed that the essential life-saving projects would continue while prioritizing strategic investments that strengthen both allies and the United States.

Implications for Future Foreign Aid Initiatives

As the State Department takes over USAID’s responsibilities, this pivotal transformation signals a new chapter in U.S. foreign assistance. Stakeholders will closely monitor how these changes will reshape diplomatic efforts and aid delivery globally.

The integration may present both challenges and opportunities. Analysts and advocates for international aid are already raising concerns regarding the implications of this merger on the effectiveness and reach of U.S. assistance in the developing world. It remains to be seen how the streamlined operations will affect relationships with partner nations and the global perception of American aid efforts.

The coming months will be crucial as the State Department undertakes this ambitious overhaul, working to define its role in international humanitarian initiatives while attempting to navigate the complex dynamics of global politics.