- The U.S. State Department confirmed the shutdown of USAID after a federal court ruling supported the Trump administration's cost-cutting efforts.
- USAID, with a $40B annual budget, faced long-standing GOP scrutiny over spending priorities, accused of straying from its original mission.
- Most USAID functions will merge into the State Department by July 1, with non-priority programs discontinued; some employees may be rehired for critical aid work.
- A federal appeals court rejected a legal challenge, allowing Elon Musk's controversial USAID restructuring to proceed.
- Secretary of State Marco Rubio framed the move as fiscally responsible, claiming it refocuses aid on U.S. interests while ending "misguided" spending.
The U.S. Department of State has announced the closure of the U.S. Agency for International Development (USAID) following a federal court ruling in favor of the Trump administration's cost-cutting efforts.
USAID, which had an annual budget of roughly $40 billion, funded global health initiatives, disaster relief and economic development but had long been a target of Republican scrutiny over controversial grants.
"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," Secretary of State Marco Rubio said.
The State Department would absorb "many" of USAID's functions, while the remaining programs that do not align with the administration's priorities will be discontinued. USAID's operations will be fully integrated into the State Department by July 1.
"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 said. "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." (Related: USAID's overseas labs and reckless research: The real culprit behind disease outbreaks, says biosafety expert.)
Court clears path for Elon Musk's USAID restructuring
In line with this, a State Department memo outlines the next steps: USAID may rehire some employees to oversee remaining "life-saving and strategic aid programming," while "all non-statutory positions" 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 stated. "It will also obviate the need for USAID to continue operating as an independent establishment."
Meanwhile, the Fourth U.S. Circuit Court of Appeals in Richmond, Virginia, rejected a bid to halt Elon Musk's controversial restructuring of the USAID. The 2-1 ruling on March 28 also dissolved a temporary restraining order that had paused the USAID overhaul.
"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 Circuit Judge Marvin Quattlebaum, Jr.
"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. 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."
This has allowed the agency's restructuring to proceed as intended.
Visit BigGovernment.news for more stories about corruption at the USAID.
Watch the video below where a GOP congressman praised Musk for doing the right thing in closing USAID.
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