Rubio terminates all USAID overseas positions, dismantling agency after decades of wasteful spending
By isabelle // 2025-06-11
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  • Secretary Rubio orders termination of all USAID overseas positions by September, dismantling the agency after decades of operation.
  • The State Department absorbs remaining programs after slashing 83% of USAID initiatives earlier this year.
  • A State Department cable directs embassies to abolish USAID roles, consolidating foreign aid under Rubio’s control by June 15.
  • USAID faced criticism for wasteful spending, including funding LGBT activism, Egyptian tourism, and groups linked to terrorists.
  • Critics warn of humanitarian risks, but supporters argue consolidation ensures accountability and ends corruption.
In a sweeping move to rein in government bloat and eliminate wasteful spending, Secretary of State Marco Rubio has ordered the termination of all United States Agency for International Development (USAID) overseas positions by September, effectively dismantling the six-decade-old agency. The State Department will absorb the remaining programs after already slashing 5,200 of USAID’s 6,200 initiatives earlier this year. This decisive action marks the culmination of a Trump administration campaign to root out corruption, inefficiency, and politically driven spending that critics argue did little to serve American interests. The directive, outlined in a State Department cable, instructs U.S. embassies in over 100 countries to abolish all USAID roles by September 30. "The Department of State is streamlining procedures under National Security Decision Directive 38 to abolish all USAID overseas positions," the cable states, adding that Rubio’s team will assume control of foreign assistance programming by June 15. The move follows President Trump’s executive order freezing foreign aid pending review as part of a broader push to overhaul what his administration deems a bloated and unaccountable bureaucracy.

A legacy of waste and abuse

For years, USAID has faced accusations of funneling taxpayer dollars into frivolous or ideologically driven projects abroad while failing to deliver tangible benefits to Americans. A White House report from February highlighted egregious examples, including $1.5 million to promote "diversity, equity, and inclusion" in Serbia, $47,000 for a "transgender opera" in Colombia, and $2 million for sex changes and LGBT activism in Guatemala. Other questionable expenditures included $6 million for Egyptian tourism and millions diverted to groups linked to terrorist organizations, including the Taliban. "The waste, fraud, and abuse ends now," the White House declared earlier this year. Critics warn that the abrupt termination of USAID programs could jeopardize vulnerable populations reliant on U.S. aid. Middle East Eye reported that cuts have already left food shipments rotting in Sudanese warehouses amid famine conditions, while exiled human rights activists lost critical funding. However, Rubio and the Trump administration argue that consolidating foreign assistance under the State Department will ensure greater accountability. Supporters of the move contend that USAID’s legacy of inefficiency, including grants for comic books, musicals, and luxury electric vehicles in developing nations, justifies its dissolution. State Department spokesperson Tammy Bruce downplayed the controversy over the termination, calling the cable "nothing new" and reiterating that embassies were already prepared for the transition. “So this was a cable, telling our posts exactly what they were expecting to be told, which is that those positions were being eliminated. So it wasn’t a surprise. It’s nothing new," she said. "And, it is exactly what we previewed, in February and March of this year.”

A new era for foreign aid

With USAID’s overseas roles set to vanish by fall, the State Department faces the monumental task of absorbing its remaining functions. Proponents argue this consolidation will eliminate redundancies and prevent future abuse, while detractors fear a loss of specialized expertise in humanitarian relief. The Trump administration, however, remains steadfast, framing USAID’s demise as a victory for taxpayers. As the deadline approaches, the debate over foreign aid’s purpose will intensify. For Rubio and Trump, the answer is clear: aid must be strategic, transparent, and free from ideological excess. The era of USAID’s unchecked spending, they argue, is over. Sources for this article include: MiddleEastEye.net ABCNews.go.com TheGuardian.com WhiteHouse.gov
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