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Trump Administration Pushes Controversial Overhaul of USAID

A federal judge has temporarily blocked further dismantling of USAID, but the administration continues efforts to restructure and rename the agency under the State Department.

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Pete Marocco, deputy administrator-designate at the U.S. Agency for International Development (USAID), arrives to meet with members of Congress to discuss foreign assistance, on Capitol Hill in Washington, D.C., U.S. March 5, 2025.
Protesters hold placards as Pete Marocco, deputy administrator-designate at the U.S. Agency for International Development (USAID), attends a meeting with members of Congress to discuss foreign assistance, on Capitol Hill in Washington, D.C., U.S. March 5, 2025.
People protest as Pete Marocco, deputy administrator-designate at the U.S. Agency for International Development (USAID), attends a meeting with members of Congress to discuss foreign assistance, on Capitol Hill in Washington, D.C., U.S. March 5, 2025.

Overview

  • The Trump administration plans to rename USAID as the U.S. Agency for International Humanitarian Assistance (IHA) and place it under the Secretary of State's authority.
  • A federal judge ruled that efforts to dismantle USAID likely violated the Constitution, halting further actions, though the administration continues to push its restructuring agenda.
  • The proposed overhaul includes merging USAID with other agencies, focusing on U.S. geopolitical interests, and incorporating blockchain technology for aid distribution transparency.
  • USAID has been significantly reduced, with 83% of its programs terminated and its workforce cut to fewer than 300 employees from 10,000.
  • Critics warn that the restructuring has disrupted global humanitarian efforts, while proponents argue it aligns foreign aid with U.S. strategic priorities.