Thousands of USAID Employees to be Placed on Leave Amid Trump's Effort to Shrink Government

What Happened?

Thousands of employees at the United States Agency for International Development (USAID) will be placed on leave by Friday night amid sweeping reduction measures by the Trump administration.

In a USAID shared statement online, 'On Friday, February 7, 2025, at 11:59 p.m. (EST) all USAID direct hire personnel will be placed on administrative leave globally.'

The exception was designated for personnel responsible for mission-critical functions in specially designated programs.

Preparation plans are being made for personnel posted outside the U.S., the agency added.

That includes paid return travel accommodation back within 30 days to the U.S.

While the USAID is expected to remain a humanitarian aid entity, the Trump administration announced it will reportedly be merged into the State Department.

President Trump appointed Secretary of State Marco Rubio as acting USAID director during this process.

Billionaire Elon Musk, co-leading the Department of Government Efficiency (DOGE), had reportedly said he and Trump discussed in great detail and both agreed that USAID should be shut down.

Democratic Congress members were reportedly denied entry into the USAID headquarters building Monday as federal law enforcement officers restricted their access.

The agency's website also went offline on Saturday without explanation.

Why it Matters

This process of dismantling the USAID comes after President Trump issued an executive order for a 90-day pause on almost all foreign assistance worldwide.

The USAID, established in 1961, oversees the humanitarian efforts of roughly 120 countries globally.

Foreign aid from the U.S., including USAID, accounts for less than 1% of the federal budget.

But Secretary of State Rubio has stated that U.S. tax dollars should further U.S. national interests.

'USAID has a history of sort of ignoring that and deciding that they're somehow a global charity,' Rubio said according to reports.

Trump's move to shut down the agency would still require congressional approval as it was established by an act of Congress.

In the meantime, thousands of furloughs and layoffs continue while Trump and his administration find ways to address the nation's debt deficit.

Some companies that rely on USAID contracts are reportedly at risk of imminent bankruptcy.

According to NBC News, several different law firms have been approached as USAID employees and contractors are discussing potential lawsuits.

Sen. Peter Welch expressed in an emailed statement that Musk's role in DOGE is 'a gross abuse of power by an unelected bureaucrat, and it shows money can buy power in the Trump White House.'

House Speaker Mike Johnson defended Musk's DOGE role Wednesday and his efforts to cut government spending.

'The executive branch of government in our system has the right to evaluate how executive branch agencies are operating,' Johnson said. 'It's not a power grab.'

He added that the executive branch is acting 'within the scope of their authority.'

How it Affects You

Trump is pushing forward with his vision of downsizing the government.

Most of the federal government has been operating under a temporary funding measure that expires in March.

Republicans on Capitol Hill have been pressured to answer if recent moves by the Trump administration are constitutional.

It may create a challenge for bipartisan vote measures that will require a unified Congress to accomplish budget goals to avert a future shutdown.