Overview

• The Trump administration's plan involves renaming USAID as the U.S. Agency for International Humanitarian Assistance and embedding it within the State Department with a limited mandate.
• A federal judge has blocked efforts to shut down USAID, ruling the move likely unconstitutional, complicating the administration's overhaul efforts.
• The proposal includes merging the Millennium Challenge Corporation, International Development Finance Corporation, and U.S. Trade and Development Agency to counter China's Belt and Road Initiative.
• Key politically-oriented programs, such as democracy promotion and religious freedom, would be transferred directly under the State Department's control.
• The administration is preparing a fiscal year 2026 funding request to implement these changes, which requires Congressional approval and amendments to existing laws.