U.S. Dismantles USAID, Shifts Foreign Aid Control to State Department

Reported by Kokcha News Agency:
In a significant shift in U.S. foreign aid policy, Secretary of State Marco Rubio announced on Tuesday, July 1, that the U.S. Agency for International Development (USAID) will no longer manage U.S. foreign assistance programs. Rubio stated that USAID has failed in its mission and is no longer aligned with current U.S. strategic interests.

Aid to Be Managed by State Department
Rubio confirmed that all U.S. foreign aid efforts will now be handled directly by the Department of State. Only programs that align with U.S. government policies and advance American national interests will be allowed to continue.

“Developing nations had grown dependent on USAID assistance,” Rubio said during a press briefing. “Future aid will be conditional, strategic, and aligned with American interests abroad.” He described the move as a realignment rather than a retreat from global engagement.

Mounting Criticism and Budget Cuts
The announcement follows growing criticism of USAID’s effectiveness and calls within the Trump administration for tighter control over foreign spending. USAID has already faced budget cuts and diminished authority since Trump took office.

Potential Humanitarian Consequences
A recent global impact study warns that the termination of U.S. financial assistance—particularly in health, education, and food security—could result in the deaths of over 14 million people worldwide within five years. Aid experts argue that removing USAID without sustainable alternatives puts millions at risk in developing regions.

USAID’s Legacy
Established in 1961 under President John F. Kennedy, USAID has been a cornerstone of U.S. humanitarian and development outreach. It has funded critical programs in more than 100 countries, including vaccination campaigns, post-disaster reconstruction, and women’s education initiatives.

Criticism of the Decision
Critics argue that eliminating USAID’s operational role will erode U.S. global influence and dismantle decades of soft diplomacy. As global crises—from climate change to refugee displacement—intensify, many fear this policy shift could leave vulnerable communities without support and deepen geopolitical instability.