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Secretary of State Marco Rubio, now acting head of USAID, accused the agency of being "completely unresponsive." He announced plans to absorb parts of USAID into the State Department, while other functions might face termination. Despite this, legal hurdles remain, as Congress
established USAID as an independent entity. The Congressional Research Service emphasized that dismantling the agency requires legislative
approval.
This restructuring follows President Donald Trump’s freeze on foreign aid, part of his "America First" agenda. The $72 billion disbursed globally by USAID in fiscal year 2023 represented 42% of all humanitarian aid tracked by the United Nations in 2024. Critics argue the freeze undermines U.S. diplomacy, especially in countering China and Russia's influence in developing nations. “The abrupt halt to aid delivery has left implementing partners in financial distress,” noted Patricia Zengerle, a Washington analyst.
Further complicating the situation is billionaire Elon Musk's controversial involvement. Musk, who has labeled USAID a "criminal organization," was tasked with scaling down the agency. His claims have drawn widespread criticism for lacking substantiation and risking the credibility of U.S. humanitarian efforts.
Peter Marocco, newly appointed to oversee USAID operations, conveyed the administration's intent to reorganize during a State Department briefing. He emphasized waivers would only apply to emergency life-saving aid. However, this reassurance offers little solace to the thousands of families affected by the abrupt policy shift.