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USAID Notifies Congress of Dissolution as State Department Takes Over

The Trump administration moves forward with dismantling USAID, issuing layoff notices to 4,600 employees and transferring operations to the State Department by September 2025.

U.S. Secretary of State Marco Rubio and Suriname's President Chan Santokh attend a press conference, in Paramaribo, Suriname, March 27, 2025. REUTERS/Nathan Howard/Pool
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Overview

  • USAID has formally notified Congress of its dissolution, with operations to be fully transferred to the State Department by September 2, 2025.
  • Layoff notices have been issued to 4,600 USAID employees, with some eligible to apply for State Department roles after a 60-day waiting period.
  • The restructuring has already resulted in the termination of over 5,300 aid programs, totaling $75.9 billion in funding cuts.
  • The Trump administration frames the move as a measure to enhance efficiency and align foreign aid with U.S. strategic interests.
  • Critics warn of significant humanitarian and geopolitical fallout, alongside legal and political challenges to the administration’s authority to dissolve the independent agency.