Pull to refresh
Logo
Daily Brief
Following
Why Ranks Sign Up
The dismantlement of USAID

The dismantlement of USAID

Rule Changes

Trump administration's systematic shutdown of America's 64-year-old foreign aid agency

July 1st, 2025: USAID Ceases Operations

Overview

Hours after taking office on January 20, 2025, President Trump signed an executive order freezing all U.S. foreign aid for 90 days. Stop-work orders shuttered HIV clinics in Ivory Coast, refugee camps lost infrastructure support, and 3.8 million women lost access to contraceptive care.

By March, the administration had terminated 5,800 contracts, fired over 1,600 employees, and placed nearly all of USAID's 4,700 workers on leave. Secretary of State Marco Rubio took control of the agency, calling it "completely unresponsive" and announcing plans to absorb what remains into the State Department.

Judge Carl Nichols, a Trump appointee, blocked the administration on February 7 from placing 2,200 workers on leave and reinstated 500. He said overseas workers in dangerous locations would face irreparable injury from losing email, payment, and security warnings. On February 21—just two weeks later—Nichols reversed course when unions couldn't prove irreparable harm, and mass firings began at the $35 billion agency that saved 25 million lives through PEPFAR in 55 countries.

Key Indicators

4,700
USAID employees placed on leave
Nearly the agency's entire workforce, with only mission-critical personnel exempted
1,600
Jobs eliminated in reduction in force
Terminated positions as of February 2025, with thousands more cuts coming
5,800
Contract awards terminated
USAID programs canceled by State Department review completed February 25
$35B
Annual USAID budget managed
Foreign assistance funding controlled by the agency in FY2024
25M
Lives saved by PEPFAR since 2003
HIV/AIDS program implemented through USAID, now frozen indefinitely
14 days
Duration of court protection
Time between Judge Nichols' initial restraining order and its dissolution

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

Sign up to generate historical perspectives on this story.

Play

Exploring all sides of a story is often best achieved with Play.

Log in to play. Track your picks, climb the leaderboards. Log in Sign Up
Predict 4 ways this could play out. Contrarian picks score more — points lock when the scenario resolves. Log in to play
Timeline Five events from this story — drag them oldest to newest. Log in to play
Connections Sixteen names from the news. Find the four hidden groups of four. Log in to play

People Involved

Organizations Involved

Timeline

November 1961 July 2025

15 events Latest: July 1st, 2025 · 11 months ago Showing 8 of 15
Tap a bar to jump to that date
  1. USAID Ceases Operations

    Latest Administrative

    Official end of USAID's authority to implement foreign assistance. Remaining programs transferred to State Department control.

  2. Pete Marocco Leaves State Department

    Personnel

    The architect of USAID's dismantlement departs amid reported tensions between Rubio team and MAGA movement.

  3. Final Workforce Terminations Announced

    Workforce Reduction

    Administration announces termination of remaining 900 USAID employees, effective July 1 or September 2.

  4. State Department Terminates 5,800 Contracts

    Administrative

    Completed review results in cancellation of 5,800 USAID contract awards and 4,100 State grants. Programs across 55 countries shut down.

  5. 4,700 USAID Workers Placed on Leave

    Workforce Reduction

    Midnight deadline: nearly entire USAID workforce placed on paid administrative leave. Termination letters begin going out for 1,600 positions.

  6. USAID Staff Ordered on Leave

    Administrative

    Directive issued: all USAID direct hire personnel globally to be placed on administrative leave Friday at 11:59 PM, except mission-critical functions.

  7. Rubio Takes Control of USAID

    Leadership

    Secretary of State announces he's acting USAID administrator, effectively placing agency under State Department control. Names Marocco as deputy.

  8. Pete Marocco Orders Aid Freeze

    Administrative

    Newly installed as State's Foreign Assistance Director, Marocco sends cable ordering immediate halt to new aid spending and stop-work on existing contracts.

  9. Trump Freezes All Foreign Aid

    Executive Action

    Hours after inauguration, Trump signs EO 14169 pausing all U.S. foreign development assistance for 90 days. Stop-work orders follow.

  10. Samantha Power Sworn In as Administrator

    Leadership

    Power becomes first USAID administrator to serve on National Security Council, elevating agency's profile under Biden.

  11. Kennedy Creates USAID

    Founding

    President Kennedy signs Foreign Assistance Act and executive order establishing USAID to unify U.S. development aid programs during the Cold War.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1887-1995

Interstate Commerce Commission Abolishment (1995)

The ICC was the federal government's first independent regulatory commission, created in 1887 to regulate railroads. It grew into a powerful agency with broad authority over transportation. By the 1970s, deregulation movements targeted it as outdated and bureaucratic. Congress passed legislation gradually stripping its powers through the 1980s. In 1995, Congress voted to abolish it entirely, transferring remaining functions to the Surface Transportation Board.

Then

Agency functions transferred to smaller entity without major disruption to transportation regulation.

Now

Became the template for how to properly eliminate a federal agency: through legislation, not executive fiat.

Why this matters now

The ICC precedent shows that abolishing federal agencies requires congressional approval—exactly what Trump is trying to bypass with USAID.

1973-1974

Nixon's Failed Attempt to Abolish OEO (1973)

President Nixon tried to dismantle the Office of Economic Opportunity by refusing to spend appropriated funds and scattering its programs across other agencies without congressional authorization. Federal courts ruled the impoundment unconstitutional. Congress fought back, but the agency was weakened. Reagan finally succeeded in abolishing OEO in 1981—by working with Congress to pass legislation, not unilateral executive action.

Then

Courts blocked Nixon's unilateral dismantlement; agency limped forward in damaged form.

Now

Established that presidents cannot abolish agencies alone, but persistent executive hostility can functionally gut them before courts intervene.

Why this matters now

Trump is repeating Nixon's strategy with USAID: create facts on the ground through mass firings, then dare courts to restore what's already destroyed.

1980-present

Department of Education Nearly Abolished (1980s-present)

Since its creation in 1979, the Department of Education has been a Republican target. Reagan campaigned on abolishing it but never had the votes. Subsequent Republican presidents and Congress members proposed elimination bills that went nowhere. The department survived through congressional protection, even as conservatives succeeded in constraining its regulatory reach and funding growth.

Then

Department survived all abolishment attempts through congressional resistance.

Now

Demonstrated that agencies with strong constituencies and clear statutory authority are difficult to eliminate without overwhelming political will.

Why this matters now

USAID lacks the domestic constituency that saved Education—foreign aid has few voters defending it, making Trump's unilateral dismantlement politically easier.

Sources

(19)