Breaking: Trump Administration Cancels Most USAID Programs, Folds Others into State Department

The Trump administration is canceling most of the U.S. Agency for International Development’s programs and folding the remaining initiatives into the State Department.

Secretary of State Marco Rubio announced early Monday that 83 percent of USAID’s programs, or 5,200 contracts, will be terminated and approximately 1,000 contracts will be administered by the State Department.

“The 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States,” Rubio said on X.

“In consultation with Congress, we intend for the remaining 18% of programs we are keeping (approximately 1000) to now be administered more effectively under the State Department.”

Rubio thanked the Department of Government Efficiency for its work on reforming USAID, the biggest project DOGE has pursued to date. Billionaire Elon Musk, head of DOGE, took the lead on dismantling USAID last month because of its long history of wasteful spending and funding for left-wing projects worldwide.

Rubio took over as acting USAID administrator in February and initiated a review of its spending shortly after Musk declared war against the agency and set his sights on tearing it up. He was personally involved in the review process for USAID grants, the State Department said in an internal memo, as NR previously reported.

The memo said the cuts to 5,800 multi-year USAID projects are worth an estimated $54 billion. Rubio’s review of USAID grants was part of State’s broader review of U.S. foreign aid that President Trump ordered at the start of his term. The State Department identified approximately $60 billion of foreign aid cuts in total during its ongoing review process.

Critics of Musk’s plan for USAID expressed concerns about the fate of the agency’s global health and humanitarian aid programs. Rubio did not specify which USAID programs the State Department would begin managing, but the memo said food assistance initiatives and healthcare programs such as medical treatments for tuberculosis, HIV, and malaria would be kept in place.

“Tough, but necessary. Good working with you,” Musk said, replying to Rubio’s post.

“The important parts of USAID should always have been with Dept of State.”

The New York Times reported last week that Musk and Rubio clashed over Rubio’s handling of the State Department during the Trump administration’s recent cabinet meeting where Trump reined in DOGE’s power.

“ELON AND MARCO HAVE A GREAT RELATIONSHIP. ANY STATEMENT OTHER THAN THAT IS FAKE NEWS!!!” Trump said Saturday on Truth Social, seemingly responding to the Times report.

Trump decided to give his cabinet appointees the last word on hiring and spending decisions, with DOGE taking an advisory role. The president remains enthusiastic about DOGE’s mission and praised Musk’s work when announcing the change to DOGE’s responsibilities.

Trump made the changes after several DOGE missteps resulted in the firing and quick rehiring of government employees working on crucial programs such as the maintenance of America’s nuclear weapons and a health program for 9/11 survivors.