In a significant shift in U.S. foreign policy, President Donald Trump has announced plans to integrate the U.S. Agency for International Development (USAID) into the State Department. This move aims to streamline operations and align foreign aid initiatives more closely with national interests.
Established in 1961 by President John F. Kennedy during the Cold War, USAID has played a central role in providing international assistance. The agency disbursed $43.79 billion in 2023, supporting 130 countries with various humanitarian efforts, including poverty alleviation, disease prevention, and promoting economic growth. USAID is particularly active in strategically significant nations such as Ukraine, Ethiopia, and Somalia.
However, critics argue that aligning USAID with the State Department could politicize its operations, potentially limiting its ability to provide humanitarian aid to countries with which the U.S. has no diplomatic relations, such as North Korea or Iran. USAID’s ability to operate independently in regions requiring humanitarian assistance, often bypassing political considerations, has been a key element in its success.
The decision to merge USAID with the State Department is part of a broader strategy to enhance the efficiency and effectiveness of U.S. foreign assistance programs. By consolidating these agencies, the administration seeks to reduce redundancy and ensure that aid efforts are more directly aligned with diplomatic objectives. A senior White House official noted that President Trump plans to notify Congress about this initiative soon, according to Reuters.
Elon Musk, CEO of Tesla and SpaceX, has been appointed to oversee the restructuring process. Musk’s involvement underscores the administration’s commitment to bringing innovative leadership to government operations. His role will focus on integrating USAID’s functions into the State Department and implementing efficiency measures.
Musk held a live session on X Spaces saying he spoke in detail about USAID with the president. “He agreed we should shut it down…It became apparent that its not an apple with a worm it in. What we have is just a ball of worms. You’ve got to basically get rid of the whole thing. It’s beyond repair…We’re shutting it down,” he said, according to AP News.
The proposed merger has elicited strong reactions from lawmakers. Senate Minority Leader Chuck Schumer expressed concerns, stating that dissolving USAID as an independent agency would be “illegal and against our national interests.” He emphasized the importance of maintaining an independent development voice within the U.S. government.
“The Administration’s decisions to place senior leaders throughout the agency on leave; to terminate ongoing programs without reviewing their efficacy and value simply because of how they were labeled under the previous Administration; and to freeze ongoing foreign assistance without engaging in meaningful consultation and transparency with Congress—including to ensure compliance with the law—have created a maelstrom of problems that have put our nation at risk and undermined American credibility around the globe,” Sens. Jeanne Shaheen, Brian Schatz, Reps. Gregory Meeks, and Lois Frankel (D-Fla.) expressed in a letter, The Hill reported.
Legal experts suggest that the merger may require congressional approval, as reorganizing executive branch agencies typically involves legislative consent. The administration’s approach to this process remains under scrutiny, with potential legal challenges anticipated.
USAID has been instrumental in delivering humanitarian assistance and promoting development worldwide. The merger raises questions about the future of U.S. foreign aid programs and their capacity to address global challenges effectively. Critics warn that consolidating these agencies could lead to a diminished focus on development priorities, potentially impacting millions who rely on U.S. assistance.
As the merger progresses, stakeholders are closely monitoring its impact on U.S. foreign policy and international relations. The integration of USAID into the State Department represents a significant shift in the U.S. government’s approach to foreign assistance, with potential long-term effects on global development efforts.