The United States Agency for International Development (USAID) will officially cease its foreign aid operations on Tuesday, Secretary of State Marco Rubio announced, signaling a dramatic shift in U.S. foreign assistance policy.
Rubio said the country would move away from a “charity-based model” and instead focus on targeted, limited assistance that promotes sustainable development and trade partnerships.
“We will favor those nations that have demonstrated both the ability and willingness to help themselves and will target our resources to areas where they can have a multiplier effect and catalyze durable private sector, including American companies, and global investment,” he wrote.
The decision marks the full transfer of USAID’s functions to the State Department, part of former President Donald Trump’s broader effort to streamline the federal government and realign foreign aid with his “America First” doctrine.
“This new model,” Rubio added, “would prioritize trade over aid and investment over assistance,” asserting that the strategy would also help the U.S. better counter China’s growing global influence.
Since taking office, the Trump administration has frozen or slashed billions in aid, insisting that U.S. taxpayer money should only support programs aligned with its strategic goals. These sweeping cutbacks have effectively shut down USAID, leading to mass layoffs and disruptions in global humanitarian efforts.
The consequences have been severe. According to The Lancet, dismantling USAID could result in over 14 million additional deaths by 2030. USAID has played a critical role in global health, particularly in low- and middle-income nations, especially in Africa.
Reuters reported that a key USAID contract to provide emergency rape survivor kits in the conflict-ridden eastern Democratic Republic of the Congo was recently canceled, leaving thousands without vital medication.
Established in 1961 by President John F. Kennedy, USAID was a cornerstone of U.S. foreign policy during the Cold War, aimed at curbing Soviet influence through coordinated development efforts. The agency has long been the world’s leading humanitarian donor, with the U.S. contributing at least 38% of global aid tracked by the UN. Last year alone, $61 billion in foreign assistance was disbursed, half of which was through USAID.
Programs now affected by the cuts include the globally recognized President’s Emergency Plan for AIDS Relief (PEPFAR). With sub-Saharan Africa still at the center of the AIDS pandemic, aid reductions have restricted access to life-saving antiretroviral drugs, particularly among vulnerable groups like gay men and sex workers.
Trump has argued that the U.S. contributes disproportionately to global aid and has urged allies to contribute more.
A senior State Department official described the USAID model as a “failed engagement,” claiming it did not sufficiently reduce dependency on U.S. support.
“We want to see more investment from our partners, co-investment,” the official said. “We want to see trade deals, compacts, agreements to work together on stuff.”
The closure of USAID has drawn rare bipartisan criticism. Former Presidents George W. Bush and Barack Obama reportedly expressed concern during a private video conference with members of the USAID community.
“Gutting USAID is a travesty and it’s a tragedy. Because it’s some of the most important work happening anywhere in the world,” Obama said.