US Government to Shut Down USAID by July 2025

USAID Staff Informed of Job Cuts as Agency Faces Shutdown

By DTD- On Apr 2, 2025

Washington D.C. — The U.S. government confirmed on Friday that it will shut down the United States Agency for International Development (USAID) by July 2025. This move follows a push by former President Donald Trump to reduce foreign aid spending, drawing strong criticism both domestically and abroad.

In an official statement, U.S. Secretary of State Marco Rubio announced that the Department of State and USAID have informed Congress of their intention to reorganize the agency, realigning key functions to the State Department by 1 July 2025. Rubio further stated that the State Department would also phase out USAID functions that do not align with the current Administration’s priorities.

“Unfortunately, USAID strayed from its original mission long ago,” Rubio said. “The gains were too few, and the costs were too high.”

USAID, which was established by the U.S. Congress in 1961, has historically played a critical role in global humanitarian aid, managing an annual budget of nearly $43 billion—over 40 percent of the world’s foreign humanitarian assistance. However, the Trump administration’s focus on reducing foreign aid expenditures led to dramatic cuts, beginning with an executive order freezing aid for 90 days upon Trump’s inauguration in January. While some humanitarian programs were exempted from the freeze, many others were severely scaled back.

Staff members of USAID, the agency’s independent operations severely impacted by the budget reductions, were informed Friday that their positions would be eliminated, except for those mandated by law. A memo from Jeremy Lewin, acting head of the agency, also indicated that most of USAID’s operations would be retired in the coming months.

The move to eliminate USAID has sparked widespread condemnation. Critics argue that the closure of the agency would significantly hinder global development, diplomatic relations, and the U.S.’s ability to respond to crises worldwide. The proposal’s approval marks the end of USAID’s prominent role in international aid as it faces its planned shutdown within the next year.