The U.S. State Department made an official announcement on Friday regarding the closure of the U.S. Agency for International Development (USAID) following a victory by the Trump administration in a federal court battle concerning the cost-reduction measures implemented by the Department of Government Efficiency (DOGE), led by Elon Musk.
“Foreign assistance done right can advance our national interests, protect our borders, and strengthen our partnerships with key allies. Unfortunately, USAID strayed from its original mission long ago. As a result, the gains were too few and the costs were too high,” said Secretary of State Marco Rubio in a statement.
Jeremy Lewin, a former DOGE official, informed staff about the agency’s closure in an internal memo on Friday, stating that the State Department plans to take over many of USAID’s operations and initiatives, according to ABC News.
“Thanks to President Trump, this misguided and fiscally irresponsible era is now over. We are reorienting our foreign assistance programs to align directly with what is best for the United States and our citizens,” Rubio added.
“We are continuing essential lifesaving programs and making strategic investments that strengthen our partners and our own country. This is yet another promise made and delivered to the American people.”
Members of Congress were notified about the decision to move USAID’s operations under the State Department by July 1, while discontinuing the parts of the agency that do not align with the administration’s priorities.
USAID, with an annual budget of approximately $40 billion, played a crucial role in funding global health and aid programs, but faced consistent criticism from Republican lawmakers for financing what they considered left-wing initiatives.
House Foreign Affairs Committee Chairman Brian Mast (R-Fla.) had raised concerns about specific USAID grants, such as $2.5 million for electric vehicle projects in Vietnam, $47,000 for a transgender opera in Colombia, and $32,000 for the creation of a transgender comic book in Peru, as initially reported by the Daily Mail.
The decision to shut down the agency had been in progress but gained momentum after a ruling from a federal appeals court on Friday. A three-judge panel from the Fourth U.S. Circuit Court of Appeals in Richmond, Virginia, issued a judgment that furthered the administration’s agenda.
Judges Paul Niemeyer, appointed by President George H.W. Bush, and Marvin Quattlebaum, Jr., appointed by President Trump, dismissed an appeal from 26 current and former USAID employees who sought to halt Musk’s decision to terminate employees and contracts within the agency.
The plaintiffs argued that Musk, acting as the DOGE administrator, was unconstitutionally bypassing Congress when he moved to dismantle agency functions.
However, DOJ lawyers contended that Musk, in his role as a senior adviser to Trump, was not acting as the DOGE administrator and that Secretary of State Marco Rubio had approved the budget-cutting measures.
“The only evidence cited by plaintiffs in support of their motion, which was subsequently relied on by the district court, were social media posts and news reports,” wrote Quattlebaum in reference to Maryland federal judge Theodore Chuang’s decision to temporarily halt DOGE’s actions.
“To be sure, Musk claimed involvement in the USAID decisions in those posts and reports. But that is not the point because no one disputes his involvement,” they noted, siding with the Trump administration.
“The question is whether Musk both directed those decisions and did so without the approval or ratification of USAID officials. And no record evidence shows that he did.”
Circuit Judge Roger Gregory, appointed by former President Bill Clinton, agreed with the majority, though he criticized the administration for allegedly infringing on the legislative branch’s role, disrupting the separation of powers.
“We may never know how many lives will be lost or cut short by the Defendants’ decision to abruptly cancel billions of dollars in congressionally appropriated foreign aid. We may never know the lasting effect of Defendants’ actions on our national aspirations and goals,” Gregory stated in his ruling.
“But those are not the questions before the Court today. The question before us is whether Defendants have satisfied their burden for a stay of the district court’s injunction pending their appeal to this Court,” he said.
According to the State Department memo, some USAID employees may be rehired to manage the remaining vital aid programs, while all non-statutory roles at the agency will be eliminated.
“This transfer will significantly enhance efficiency, accountability, uniformity, and strategic impact in delivering foreign assistance programs — allowing our nation and President to speak with one voice in foreign affairs,” the memo read.
“It will also obviate the need for USAID to continue operating as an independent establishment.”
The closure of USAID and the court’s rejection of a temporary restraining order against DOGE’s actions are expected to lead to additional legal challenges.
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