Trump Administration Shuts Down Historic USAID Agency

• Trump shuts down USAID
• End of US foreign aid era
• Criticism over humanitarian fallout

According to the EFE news agency, President Donald Trump’s administration announced on Tuesday the definitive closure of the United States Agency for International Development (USAID), created in 1961 and regarded for decades as the world’s largest distributor of humanitarian aid.

The end of USAID marks the close of an era in American foreign policy centered on development and assistance, now replaced by a strategy that, according to its proponents, seeks to align foreign aid strictly with Washington’s security and geopolitical interests.

Secretary of State Marco Rubio confirmed in a statement that the State Department would immediately take over the full management of all US international assistance, consolidating control over funds and programs previously administered by the agency.

Rubio claimed that USAID had failed to fulfill its objectives since the end of the Cold War, while accusing a network of non-governmental organizations of having, in his words, “lived off the backs of American taxpayers.”

Cuts and Closure Process

“This era of inefficiency is officially over. Under the Trump Administration, we will finally have foreign aid that prioritizes our national interests,” Rubio declared, signaling a pivot toward a much more restricted and conditional model of cooperation.

The dismantling of USAID began formally in February, following the initial public spending cuts championed by entrepreneur Elon Musk, who led a fiscal advisory committee that recommended sharply reducing foreign aid.

Since then, thousands of contracts and agreements with NGOs, foreign governments, and international agencies have been canceled, as the budget was reorganized to prioritize what the administration calls “targeted, time-limited aid.”

Rubio, who as a senator had once been one of the strongest advocates for foreign assistance, surprised many in March by announcing the cancellation of 83% of USAID’s cooperation programs, eliminating around 5,200 contracts and projects.

Social Impact of USAID’s Shutdown

During the closure process, it was reported that out of roughly 10,000 employees and contractors employed by USAID in Washington and in over 100 countries, only 294 would remain in place to maintain minimal operations and oversee the transition.

The administration defended the move, arguing that USAID had functioned more as a “charitable organization” rather than as a foreign policy tool. Officials accused the agency of sometimes funding “anti-American groups” or “regime change” initiatives that ultimately backfired.

Rubio insisted that American taxpayers “should not be paying taxes to fund failed governments in distant countries,” promising a new model of aid that would be more narrowly focused, time-bound, and directly overseen by the State Department.

The agency’s closure has sparked fierce criticism from international organizations, academics, and humanitarian experts who warn of the immediate impact on health, education, and crisis-response programs.

Historical Legacy and Uncertain Future

A study by the Barcelona Institute for Global Health (ISGlobal), published in The Lancet, estimates that the US cuts could result in more than 14 million preventable deaths by 2030, due to reduced funding for treatments for HIV/AIDS, malaria, and neglected tropical diseases.

Founded in 1961 by President John F. Kennedy, USAID had served for over six decades as the main arm of U.S. foreign cooperation, with interventions ranging from post-disaster reconstruction to ambitious agricultural, health, and education development programs.

While its supporters viewed it as a tool of soft diplomacy and the projection of democratic values, long-standing critics argued that the agency sometimes served to reinforce Washington’s geopolitical influence rather than address local needs.

With USAID’s official closure now confirmed, the US role in international humanitarian assistance is being fundamentally reshaped, leaving other global powers and organizations to step in and fill the void left by the departure of the world’s largest bilateral aid donor.