By Jonathan Landay, Steve Holland and Daphne Psaledakis
WASHINGTON (Reuters) – The Trump administration is considering scaling down the U.S. Agency for International Development and putting it under control of the State Department, two sources familiar with the discussions said on Friday, in a significant overhaul of how Washington allocates U.S. foreign aid worldwide.
The National Security Council (NSC) hosted discussions this week on the topic, a person familiar with the matter said. A U.S. official confirmed there have been discussions about such a move but said no final decisions have been made.
The Trump administration has said it is conducting a review to ensure the tens of billions of dollars worth of U.S. foreign assistance worldwide is aligned with Trump’s “America First” foreign policy and not a waste of taxpayer money.
The White House is exploring legal authorities that U.S. President Donald Trump could use to issue an executive order to end USAID’s independence, one of the sources said. It was unclear whether Trump has the power to issue such an order and bypass Congress.
The source added that officials from the newly established Department of Government Efficiency led by billionaire and Trump adviser Elon Musk were also involved in the conversations and frequented USAID headquarters in downtown Washington this week.
USAID and the White House did not immediately respond to requests for comment. The State Department referred questions to USAID.
If USAID were put under the State Department, it would likely have dramatic consequences for global life-saving aid from the world’s largest single donor.
Trump’s freeze on most U.S. foreign aid has already upended the development industry, forcing hundreds of layoffs and leaving thousands of other jobs at risk. Overseas, field hospitals in Thai refugee camps, landmine clearance in war zones, and drugs to treat millions suffering from diseases such as HIV are among the programs facing the chop.
In fiscal year 2023, the United States disbursed $72 billion of assistance worldwide on everything from women’s health in conflict zones to access to clean water, HIV/AIDS treatments, energy security and anti-corruption work. It provided 42% of all humanitarian aid tracked by the United Nations in 2024.
The potential move was first reported by Politico.
(Reporting by Jonathan Landay, Steve Holland and Daphne Psaledakis, additional reporting by Patricia Zengerle; Editing by Humeyra Pamuk)
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