The Trump administration, led by Secretary of State Marco Rubio, has announced the cancellation of 83% of programs at the US Agency for International Development (USAID), with intentions to merge the remaining programs under the State Department. This decision marks a significant shift in the management of humanitarian aid efforts, aiming to streamline operations and align them with national interests. Rubio clarified that the remaining 1,000 USAID programs will now be administered by the State Department, following a review process that led to the termination of 5,800 USAID awards.

The move to consolidate USAID programs has been described as a historic reform, supported by Elon Musk and his office, which has been advocating for federal spending cuts. Musk, known for his critical stance towards USAID, expressed approval of the decision, stating that the important aspects of USAID should have always been under the Department of State.

However, the administration’s actions have faced criticism and legal challenges. Reports indicate that the terminations of USAID awards have disrupted lifesaving programs and caused confusion among humanitarian officials. Questions have been raised regarding the impact of these changes on ongoing projects and aid distribution worldwide.

The administration’s foreign aid freeze and restructuring of USAID have triggered legal battles, with conflicting court rulings on payment obligations for humanitarian work. While the Supreme Court upheld a ruling requiring the administration to pay nearly $2 billion in unpaid fees, the timeline for disbursement remains uncertain.

Overall, the restructuring of USAID programs under the State Department reflects a significant shift in US foreign aid policy, with potential implications for global humanitarian efforts and diplomatic relations.