Trump's administration may transfer USAID under the State Department's control, revealing potential impacts, according to media reports.
The administration of American President Donald Trump is considering the possibility of cutting the U.S. Agency for International Development (USAID) and transferring its control to the State Department. This could have "dramatic consequences."
This was reported by RBK-Ukraine citing Reuters.
Two sources familiar with the discussions informed Western media that this scenario is being contemplated by the Trump administration as part of a significant overhaul of how Washington allocates foreign aid globally.
Discussions regarding the potential transfer of USAID to the State Department were held this week at the U.S. National Security Council, said a person familiar with the matter, according to Reuters.
A U.S. official also confirmed that relevant steps were discussed but noted that final decisions have not yet been made.
Politico previously reported on this potential move by U.S. authorities.
The Trump administration announced that it is conducting a review to ensure that U.S. foreign aid, amounting to tens of billions of dollars worldwide, aligns with the new president's "America First" foreign policy and is not a "waste of taxpayer money."
The White House is contemplating the end of USAID's independence
One of Reuters' sources indicated that the White House is examining the legal authorities that Trump could use to issue an order to end USAID's independence. However, it remains unclear whether the U.S. president has the authority to issue such an order bypassing Congress.
The source also relayed that officials from the newly created "Department of Government Efficiency," led by billionaire and Trump advisor Elon Musk, have also been involved in discussions and frequently visited USAID's headquarters in downtown Washington this week.
What consequences would the subordination of USAID to the State Department have?
According to Reuters, if USAID comes under the control of the State Department, it is likely to have "dramatic consequences for global humanitarian assistance from the world's largest donor."
It is also noted that Trump’s freezing of most U.S. foreign aid has already disrupted the development industry, leading to hundreds of layoffs and jeopardizing "thousands of other jobs."
As a result of the cessation of overseas aid programs, various initiatives are facing challenges, including field hospitals in Thai refugee camps, demining efforts in conflict zones, and the distribution of medical supplies to treat millions suffering from diseases like HIV.
In the 2023 fiscal year, the U.S. allocated a total of $72 billion in aid worldwide. The United States provided 42% of all humanitarian assistance tracked by the UN in 2024.
Let us also remind you that USAID supports humanitarian programs in Ukraine, including the restoration of schools, provision of medical services, and repair of critical energy infrastructure.
As previously reported, on January 21, U.S. President Donald Trump announced a 90-day suspension of all foreign aid programs to review their compliance with his foreign policy. On January 24, the U.S. State Department issued an order for a "suspension of operations" for all existing foreign aid and also halted the disbursement of new aid.
It was also reported that the U.S. Agency for International Development (USAID) branch in Ukraine also suspended its projects and funding.
Recently, President Volodymyr Zelensky stated that key humanitarian programs in Ukraine will operate using domestic funds. The head of state explained that this was a necessary step after the U.S. halted funding.
For more details on the situation, read the separate RBK-Ukraine article "USAID on pause. Why billions of dollars have been frozen for Ukraine and what the consequences will be".