The Trump administration is planning to strip the United States Agency for International Development (USAID) of its independence by placing it under the control of the State Department.
If implemented, the move would mark a significant shift in Washington’s foreign aid allocation policy, reports Reuters.
According to sources, the National Security Council discussed the matter this week, with a US official confirming the deliberations but stopping short of confirming any final decision.
Last week, the Trump administration ordered a freeze on foreign aid, stating that billions of dollars in global assistance must be reviewed to ensure alignment with President Trump’s "America First" foreign policy and to prevent potential misuse of taxpayer funds.
A source indicated that the White House is currently examining the legal framework to enable Trump to curtail USAID’s independence via executive order. The president may sign an order as early as Saturday.
However, legal ambiguities remain regarding whether Trump possesses the authority to merge USAID with the State Department without congressional approval.
Senate Minority Leader Chuck Schumer, citing speculation, warned that Trump intends to dismantle USAID as an independent agency. In a post on X (formerly Twitter), Schumer asserted that such a move would be unlawful and against national interests.
Neither USAID nor the White House has issued an official response to these reports.
Sources indicate that Elon Musk, a Trump adviser currently leading the newly established Office of Government Efficiency, has been involved in discussions regarding USAID’s restructuring.
He has reportedly visited the agency’s headquarters in Washington multiple times this week.
Since assuming office on 20 January, Trump has aggressively pursued his campaign pledges through executive orders.
During his first term in 2016, he vowed to reform a federal bureaucracy he viewed as adversarial.
Should USAID be placed under the State Department’s jurisdiction, its role as the world’s largest single donor agency could be severely compromised, potentially disrupting life-saving aid initiatives worldwide.
A source with knowledge of the agency’s operations warned that such a move would significantly impact USAID’s humanitarian efforts.
Historically, USAID has provided development assistance to countries with no formal diplomatic ties to the US, including Iran. If its operations are politically repurposed, these vital engagements may cease.
Moreover, should Trump’s plan come to fruition, the administrator role at USAID, established under former President Joe Biden, would be eliminated.
