USAID shut down: U.S. foreign aid faces major restructuring
The U.S. Department of State has officially notified Congress of the dissolution of the United States Agency for International Development (USAID), according to a statement released on Friday, March 28.
The reorganization is set to be completed by July 1, with some of USAID’s responsibilities being transferred to the State Department, DW reports.
“Well-managed foreign aid can serve our national interests, safeguard our borders, and strengthen alliances with key partners. Unfortunately, USAID has significantly deviated from its original mission. As a result, its outcomes have been too weak, and costs too high,” said U.S. Secretary of State Marco Rubio.
According to Reuters, the Department of Government Efficiency (DOGE) has informed USAID employees that all positions not mandated by law will be eliminated. Between July and September, all agency staff will receive letters encouraging them to resign.
In its statement, DOGE specified that the State Department will take over “vital and strategic assistance programs” still under USAID’s administration. However, current USAID staff will not be automatically transferred to the State Department, as a “separate and independent hiring process” will take place.
On January 20, President Donald Trump issued an executive order temporarily halting the majority of U.S. foreign aid programs for 90 days to reassess their alignment with his foreign policy.
U.S. aid to Moldova has primarily been distributed through USAID, which has funded projects in the wine industry, energy efficiency, infrastructure, and education. Experts emphasize that Moldova must identify new sources of funding to continue these initiatives, as they have been put on hold by the U.S.
The U.S. has invested more than one billion dollars in Moldova.
Translation by Iurie Tataru
