Trump Administration Proposes Overhaul of U.S. Foreign Aid Structure

The Trump administration has proposed a significant restructuring of U.S. foreign aid, focusing on “aligning funding with U.S. geopolitical interests”.

The proposal calls for scaling back the scope of foreign assistance, arguing that the current system is too broad and costly, while also failing to reduce foreign dependency on U.S. aid. The plan suggests eliminating several USAID bureaus, renaming the agency to the U.S. Agency for International Humanitarian Assistance, and limiting its role to humanitarian aid, disaster response, global health, and food security.

Politically-oriented programs, such as democracy promotion, would be transferred to the State Department.

The restructuring is part of President Trump's broader effort to “reduce government spending and increase efficiency”. However, a recent federal court ruling has temporarily blocked the closure of USAID, raising uncertainties about the future of the agency's operations. It remains unclear how the court ruling may affect USAID operations or staff reinstatement.

USAID's new leadership outlined priorities for the agency in light of recent developments. Key goals include maintaining approximately 1,000 ongoing humanitarian aid programs, ensuring the safety and productivity of personnel during the transition, and working with Congress and Secretary Rubio on USAID's handover to the State Department. The leadership, including newly appointed CFO Kenneth Jackson and COO Jeremy Lewin, emphasized the importance of continuing aid efforts and providing support to staff. Lewin was named as a DOGE staffer this month by the COO of the Consumer Financial Protection Bureau.

The memo with proposed changes was first reported by Politico.