Trump administration ends USAID, transferring foreign aid to State Department; over 5,200 programs cut amid protests.

Rubio Announces Sweeping Overhaul of U.S. Foreign Aid

Secretary of State Marco Rubio declared Tuesday that the United States Agency for International Development (USAID) will no longer manage American foreign assistance, with all continuing programs now shifting under the direct authority of the State Department. The move is part of President Donald Trump’s wider government efficiency campaign and marks a major transformation in U.S. foreign aid policy.

Rubio made the announcement in a detailed statement, sharply criticizing USAID’s effectiveness in recent decades. “Beyond creating a globe-spanning NGO industrial complex at taxpayer expense, USAID has little to show since the end of the Cold War. Development objectives have rarely been met, instability has often worsened, and anti-American sentiment has only grown,” he wrote. The State Department will take over all approved foreign assistance programs beginning July 1, aiming to prioritize projects that “advance American interests” with increased oversight and efficiency.

The restructuring follows a Department of Government Efficiency (DOGE) review that identified waste and questionable spending, such as $1.5 million to promote diversity, equity, and inclusion in Serbia’s business sector and a $70,000 grant for a diversity-themed musical in Ireland. Citing these and other examples, Rubio said, “This era of government-sanctioned inefficiency has officially come to an end.”

Thousands of Programs Cut as Aid Focuses on National Interest

According to Rubio, more than 80% of USAID’s programs—over 5,200 out of 6,200—will be canceled as a result of the review. Only projects aligning with administration priorities and national interests will continue, now managed by the State Department. Rubio emphasized, “We will finally have a foreign funding mission in America that prioritizes our national interests.”

The cuts have provoked fierce opposition from Democratic lawmakers and activists, who argue that many of the affected programs are critical to global health, human rights, and development. Academy Award-winning actress Charlize Theron, speaking at her Africa Outreach Program event, condemned the decision. “The world feels like it’s burning because it is. Foreign aid cuts brought HIV and AIDS programs in my home country of South Africa to an absolute standstill,” Theron said, warning that lives have already been lost as a result.

Theron also criticized the Trump administration’s broader policies, pointing to recent immigration raids in Los Angeles and expressing concern for women, LGBTQ individuals, and others she said are “increasingly being erased.” She described the situation as “absolutely heartbreaking” and called for action: “There is hope in standing up, organizing, protesting, voting and caring for each other, and refusing to accept that this is the new normal.”

Despite the backlash, the administration maintains that the realignment will lead to greater accountability and strategic use of American foreign aid, putting national interests first. The outcome of this sweeping shift will have lasting implications for U.S. engagement around the world—and for the many communities that have long relied on American support.