Trump Considers Merging USAID into State Department to Cut Costs

What Happened?

The United States Agency for International Development (USAID) will reportedly be merged into the State Department amid significant workforce cuts to come.

While the USAID is expected to remain a humanitarian aid entity, the Trump administration is prepared to announce sweeping moves soon, according to reports.

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

Billionaire Elon Musk, co-leading the Department of Government Efficiency (DOGE), said his team was in the process of 'shutting down USAID.'

'With regards to the USAID stuff, I went over it with (the president) in detail and he agreed that we should shut it down,' Musk stated Monday during a social media conversation.

USAID employees had reportedly received emails informing them the Washington D.C. headquarters would be closed for the day and should work remotely.

Over 600 USAID staffers had been locked out of the aid agency’s computer systems overnight, According to the Associated Press.

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

This comes after DOGE members were reportedly blocked from accessing sensitive USAID data through a U.S. Treasury system.

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

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

Why it Matters

Sen. Brian Schatz (D-Hawaii) told reporters Monday he’s placing a 'blanket hold' on Trump’s State Department nominees in hopes of slowing down the process of key position selections.

Around 60 senior USAID staffers were reportedly placed on leave recently for allegedly attempting to interfere with Trump’s executive order to freeze foreign aid for 90 days.

One senior staffer was put on leave for trying to reverse the order after finding no evidence of wrongdoing within USAID, according to CNN.

Established in 1961, the USAID oversees humanitarian, development, and security programs in about 120 countries worldwide.

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

But Rubio told reporters that 'USAID has a history of sort of ignoring that and deciding that they're somehow a global charity.'

He added that U.S. tax dollars need to further U.S. national interests.

Two-thirds of USAID's 10,000-member workforce reportedly operates overseas.

Most of the work on the ground is carried out by other organizations contracted and funded by the agency, according to BBC News.

Trump's move to shut down the agency would still require congressional approval.

USAID was established by an act of Congress under the John F. Kennedy administration.

How it Affects You

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

Thousands of furloughs and layoffs may continue while Trump and his administration find ways to address the nation's debt deficit.

Many of these moves may shake up the government with a shrinkage to accomplish that goal.