USAID set to merge with State Department on July 1

Jason Leopold and Iain Marlow, Bloomberg News on Mar 28, 2025

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WASHINGTON — The U.S. Agency for International Development will be merged into the State Department by July 1 and “substantially all” of the aid agency’s remaining personnel will be fired, according to a congressional notification sent Friday.

The State Department will assume responsibility for the aid agency’s programming and new jobs will be available to some USAID employees, the State Department’s senior official in the Bureau of Legislative Affairs, Paul Guaglianone, said in a letter accompanying the notification.

“Substantially all USAID personnel will be separated from federal service within the current fiscal year via Reduction-In-Force procedures, consistent with applicable law,” the notification said.

The notice, which said the State Department will propose legislation to “abolish” USAID as an independent agency, could be the death knell for what was once the world’s largest aid agency — with $43 billion in projects in 2023.

Founded in 1961 by President John F. Kennedy, the agency was designed to help alleviate poverty and prevent humanitarian crises from spiraling into U.S. national security concerns.

Working through partner organizations in the U.S. and around the world, USAID has funded everything from health clinics and conservation efforts in Africa to education and health projects across Southeast Asia. It helps developing nations with malaria and monitors for disease outbreaks, while its tag-line — “from the American people” — is emblazoned on sacks of emergency food aid everywhere from active war zones to some of the world’s poorest countries.

The American Foreign Service Association, which represents many U.S. diplomats and USAID staff, criticized the move on Friday, saying the Trump administration’s attack on the agency has lacked transparency.

“AFSA is alarmed by the abrupt and opaque manner in which the dismantling of USAID is being executed, and the profound disruption it is causing to our members’ lives and careers,” said Thomas Yazdgerdi, the organization’s president said in a statement.

USAID had about 10,000 employees at the outset of President Donald Trump’s second term, but that has fallen steeply as Elon Musk and his Department of Government Efficiency launched an all-out assault on the agency.

In an update to Congress this week, USAID said it had just 869 U.S. direct-hire personnel on active duty as of March 21, with 3,848 employees on administrative leave. Around 1,600 employees were previously told they were being fired in late February, with end dates of April 24 and May 26, 2025.

The notification on Friday said it wasn’t clear how many USAID personnel would be hired for new positions at the State Department.

Since he took office, Trump’s administration has slashed 83% of USAID’s contracts, with Secretary of State Marco Rubio saying publicly he planned to subsume the once-independent agency within the State Department.

The moves may still be subject to legal challenges by USAID contractors, agency employees or their unions, which have challenged previous aspects of the Trump administration’s crackdown on USAID. It’s not immediately clear whether Democratic lawmakers, who have called the administration’s shutdown of USAID illegal, will move to stop it.