The United States Agency for International Development (USAID) has now reportedly announced significant changes, informing Congress that the State Department will take over most of its responsibilities and ongoing programs.
This transition will lead to the laying off of approximately 4,600 employees across the agency, including those stationed overseas.
Employees have begun receiving Reduction in Force (RIF) notifications, which specify separation dates of either July 1, 2025, or September 2, 2025.
The merger aims to realign U.S. foreign aid with the interests of President Donald Trump’s administration. USAID officials believe that integrating their programs into the State Department will improve the effectiveness, accountability, and consistency of U.S. foreign assistance.
Jeremy Lewin, USAID’s Deputy Administrator, stated that the agency had deviated from its original mission of addressing global crises and supporting allies, becoming inefficient and unwieldy.
By bringing its core humanitarian and strategic programs under the State Department’s authority, the administration hopes to ensure that U.S. foreign affairs reflect a unified voice.
The restructuring is described as a way to maximize the impact of foreign aid while focusing on American strategic interests, rather than eliminating assistance altogether.
Over the next three months, USAID and the State Department will collaborate closely to facilitate the transition, with the State Department assessing its own needs and beginning an independent hiring process for eligible USAID employees.
Notably, a 60-day waiting period applies before rehiring individuals into other government agencies, potentially allowing some laid-off employees to join the State Department soon after.
Currently, USAID oversees 898 active programs with an estimated total cost of $78 billion.
Since January 20, many awards have been terminated, leading to substantial savings for the agency as it prepares for this major reorganization.
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