The United States Agency for International Development (USAID) officially closed its doors on July 1, 2025, with its remaining functions and programs now fully taken over by the U.S. State Department. This decision wraps up a lengthy process initiated by the administration, which included significant cuts to foreign aid, widespread layoffs, and the end of many development and humanitarian efforts around the globe. Secretary of State Marco Rubio emphasized that moving forward, foreign aid programs will be managed by the State Department, focusing on aligning with U.S. national interests and ensuring "greater accountability, strategy, and efficiency."

The shutdown of USAID, an independent agency that has been around since 1961, has sparked strong backlash from a wide range of humanitarian groups, former government officials, and global health experts. Many critics argue that this closure will lead to serious humanitarian issues, especially in developing countries that depend on U.S. aid for health care, food security, and crisis management. Recent reports, including a study from The Lancet, have raised alarms about a potential spike in preventable deaths—some estimates suggest millions could occur by 2030—due to the sudden halt of essential programs, particularly those focused on maternal and child health, HIV/AIDS, and malnutrition.

In defense of the decision, the administration claims that USAID's "charity-based" model was ineffective and didn't always align with American interests. Secretary Rubio declared that this "era of government-sanctioned inefficiency has officially come to an end," stating that future aid will prioritize trade, investment, and opportunities rather than fostering dependency. While a few high-priority programs are expected to continue under the State Department's oversight, the majority of USAID's extensive array of projects, which spanned over 100 countries, have been scrapped.

The transition has left many partners and beneficiaries in a state of uncertainty, with concerns about the continuity of vital services and the potential for operational gaps. The move represents a fundamental shift in U.S. foreign policy, signaling a re-evaluation of the nation's approach to global engagement and development assistance. The coming months will reveal the full impact of this historic change on international aid efforts and the lives of millions worldwide.