The United States Agency for International Development (USAID) is reportedly undergoing a major restructuring, with plans to merge the agency under the U.S. State Department.
As part of this transition, Secretary of State Marco Rubio has been appointed as the acting administrator of USAID, according to sources familiar with the matter.
CBS News senior White House reporter Jennifer Jacobs first broke the news, citing sources who confirmed that USAID will now fall under the purview of the State Department.
While the agency will continue to function as a humanitarian aid organization, the restructuring is expected to result in workforce reductions as part of broader efforts to streamline foreign aid operations.
🚨 Scoop: USAID will be merged into the State Department with cuts in the workforce, but it will remain a humanitarian aid entity, sources told @saraecook and me. Trump admin expected to announce the moves in coming days. Discussions of reductions in funding were still fluid…
— Jennifer Jacobs (@JenniferJJacobs) February 3, 2025
ABC News also reported that Rubio’s appointment was confirmed by internal sources. Additionally, USAID employees were informed via an agency-wide email that headquarters facilities would be closed to personnel on Monday, February 3, citing instructions from leadership.
The email did not provide specific details on how the restructuring will impact USAID’s day-to-day operations moving forward.
USAID has long operated as an independent agency within the U.S. government, focused on providing foreign aid, disaster relief, and development assistance across the world.
Bringing it under the State Department is a significant shift in how the U.S. handles its diplomatic and humanitarian efforts, consolidating control of foreign aid under the executive branch’s chief diplomatic arm.
Critics argue that this move could politicize aid distribution, potentially aligning USAID’s initiatives more closely with U.S. foreign policy objectives rather than maintaining its traditionally independent mission.
Supporters, however, suggest that integrating USAID into the State Department will reduce inefficiencies, eliminate redundant programs, and enhance coordination between diplomatic and humanitarian efforts.
As of now, there has been no official statement from the White House, the State Department, or USAID regarding the specifics of the transition.
However, with Secretary Rubio now overseeing USAID, further organizational changes and budget adjustments are expected in the coming weeks.
This is a developing story.