The Trump administration is reportedly planning to strip the U.S. Agency for International Development (USAID) of its independence and bring it under the control of the State Department, sources familiar with the discussions revealed on Friday. The move, which could take effect through an executive order, marks a significant shift in U.S. foreign aid policy.
Discussions on the matter were held this week at the National Security Council, according to a source. A U.S. official confirmed ongoing talks but stated that no final decision had been made. Meanwhile, signs of the merger are already emerging, with photographs showing USAID office plaques being removed.
Democratic lawmakers swiftly pushed back against the potential restructuring. Senator Chris Murphy hinted at an imminent decision, urging observers to “watch USAID tonight.” Senate Minority Leader Chuck Schumer labeled the move "illegal and against our national interests."
The Trump administration’s plan follows last week’s executive order freezing most U.S. foreign aid. Officials claim the move is part of a review ensuring that aid aligns with the "America First" policy and eliminates wasteful spending. However, experts warn that the freeze is already jeopardizing critical humanitarian programs, including refugee health services, landmine clearance, and HIV treatments.
USAID has historically provided aid to countries lacking U.S. diplomatic ties, such as Iran, fostering diplomatic goodwill. If placed under the State Department, its humanitarian operations could become more politically driven, potentially undermining its mission.
The move also signals a broader reorganization of federal agencies. The newly established Department of Government Efficiency, led by billionaire and Trump adviser Elon Musk, has reportedly been involved in the deliberations.
The restructuring would undo a key decision by former President Joe Biden, who elevated the USAID administrator to a Cabinet-level position. Notably, Trump has yet to appoint a USAID administrator, raising further speculation about the agency’s future.
Meanwhile, the foreign aid freeze is already having widespread consequences, with hundreds of layoffs in the development sector and critical programs in conflict zones facing cancellation. Although Secretary of State Marco Rubio recently issued a waiver for "life-saving humanitarian assistance," experts warn that halting other aid programs could cost lives.
A former senior USAID official described the potential merger as a “seismic shift” that could sideline humanitarian voices in high-level policy discussions.
As the administration pushes ahead with its overhaul, questions remain about whether Trump has the legal authority to dissolve USAID’s independence without congressional approval. The White House and USAID have yet to comment on the matter.