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September 25, 2026
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USAID Shuttered and Merged into State Department Amid Policy Shift

The U.S. Agency for International Development (USAID) was officially shut down on Tuesday, with its core functions being absorbed by the State Department. The decision, driven by the Trump administration’s policy realignment, has sparked backlash from both Democratic and Republican leaders.

Under the restructuring plan, only select USAID operations—those aligning with current administration priorities—will continue within the State Department. Programs that don’t fit into this new framework are being phased out entirely.

Former President Barack Obama criticized the move, describing the dismantling of USAID as “a colossal mistake” that could undercut decades of progress in international development. George W. Bush also voiced concern, pointing to the uncertainty surrounding PEPFAR, a major global AIDS relief initiative launched during his presidency.

President Trump has long been skeptical of U.S. foreign aid programs, arguing that they often fail to serve national interests. This reorganization reflects his administration’s broader push to reduce international aid spending and refocus American foreign policy priorities.

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