The United States Agency for International Development (USAID) is set to merge with the State Department in a move that will significantly reduce its workforce, according to multiple US officials speaking to CBS News. While the merger will consolidate operations, USAID will remain a key player in humanitarian aid, officials confirmed.
The Trump administration is expected to announce these changes in the coming days, though the final extent of the funding cuts remains unclear. Secretary of State Marco Rubio, who has been appointed the acting administrator of USAID, confirmed his new role while traveling in El Salvador. He later delegated the day-to-day responsibilities to another individual, though their identity was not disclosed.
USAID is responsible for overseeing US humanitarian, development, and security programs in approximately 120 countries. It also plays a vital role in supporting US commercial interests by fostering economic growth in developing nations. However, with foreign aid accounting for less than 1% of the federal budget, Rubio has emphasized the need for US tax dollars to further national interests, criticizing USAID for allegedly straying from this focus in favor of global charity.
The merger could spark legal challenges, as USAID was established by Congress in 1961, meaning the president would need congressional approval to shut it down. USAID has been operating under a temporary funding measure set to expire in March.
The announcement comes amid controversy surrounding a security incident at USAID headquarters on Monday, allegedly tied to efforts by officials from the Department of Government Efficiency (DOGE), led by Elon Musk, to access USAID systems. The incident led to the firing of two top security officials and the resignation of Matt Hopson, USAID’s chief of staff.
Musk, an adviser to the Trump administration, has been vocal about his support for shutting down USAID, claiming that the president agreed with his stance after detailed discussions. However, not all senior advisers within the Trump administration are in favor of completely dissolving the agency.
