The State Department Announces the Official Closure of USAID After Months of Cuts

In a major and controversial decision, the U.S. State Department has announced it is shutting down the U.S. Agency for International Development (USAID)—a key agency responsible for distributing foreign aid. The move follows a federal appeals court ruling in favour of the Trump administration and Elon Musk’s Department of Government Efficiency (DOGE).

The ruling allows the administration to go ahead with its plans to dissolve the agency, which had been in operation since 1961.

State Department to Absorb USAID’s Work

In an internal memo obtained by ABC News, newly appointed deputy director Jeremy Lewin—formerly with DOGE—told USAID employees that the State Department will take over many of USAID’s functions and programs.

According to the memo:

• USAID will no longer function as an independent agency
• Some staff may be rehired under the State Department
• All non-statutory positions (not required by law) will be eliminated

The memo claims this restructuring will lead to more efficiency, accountability, and consistency in foreign aid efforts and will allow the U.S. to “speak with one voice” in international affairs.

Legal Drama: Appeals Court Allows Shutdown to Proceed

Earlier this month, a lower court had ruled that dismantling USAID was likely unconstitutional. But on Friday, the 4th U.S. Circuit Court of Appeals reversed that decision, saying the Trump administration may legally proceed.

Judge A. Marvin Quattlebaum Jr., in a concurring opinion, wrote:

“Unconventional does not necessarily equal unconstitutional.”

This means the administration can now continue with its controversial plan to dismantle the agency, reduce its workforce, and shut down its Washington, D.C. headquarters.

Trump Administration and DOGE Push for Full Closure

For over a year, the Trump administration and DOGE have worked to reduce USAID’s influence by:

• Laying off thousands of employees
• Cutting funding for over 80% of programs
• Phasing out offices and overseas operations

Secretary of State Marco Rubio, in a statement, confirmed the administration is moving forward with shutting down USAID completely and shifting all foreign aid efforts to the State Department.

“Thanks to President Trump, this misguided and fiscally irresponsible era is now over,” Rubio said.

He added that the U.S. will still support life-saving programs but with a new focus on strategic investments that benefit U.S. interests.

Critics Raise Concerns About Global Impact

Critics have strongly opposed the decision, warning that dissolving USAID could:

• Reduce U.S. influence abroad
• Hurt vulnerable communities that rely on U.S. aid for health care, food, and emergency help
• Weaken long-standing diplomatic relationships

Legal experts say that shutting down a federal agency typically requires congressional approval, and multiple court challenges are still ongoing.

Congress Notified, Changes to Begin by July 1

The State Department confirmed that Congress has been notified about plans to reorganize USAID’s work under the department, with changes expected to take effect by July 1, 2025.

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