Trump Administration Pushes to Restructure U.S. Foreign Aid Amid Legal Challenges

The proposal seeks to dismantle USAID, consolidate agencies, and align aid with U.S. geopolitical goals, but faces constitutional and Congressional hurdles.

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.