In a landmark shift in U.S. foreign policy, the United States has officially dissolved the U.S. Agency for International Development (USAID), ending more than 60 years of global development operations. The decision was announced on July 1, 2025, by U.S. Secretary of State Marco Rubio.
Founded in 1961 under President John F. Kennedy, USAID has long served as America’s primary vehicle for humanitarian aid, global health initiatives, educational development, agricultural support, and disaster relief in over 100 countries. Over the decades, the agency is estimated to have disbursed more than $715 billion in inflation-adjusted spending.
Rubio cited a new vision under the Trump administration’s “America First” foreign policy, calling the shutdown a move toward greater efficiency, accountability, and strategic alignment in foreign assistance.
“This era of government-sanctioned inefficiency has officially come to an end,” Rubio stated. “Under the Trump Administration, we will finally have a foreign funding mission that prioritizes our national interests.”
This shift follows years of criticism from President Donald Trump, who argued that USAID had become a “drainpipe” of taxpayer dollars with little to show in return. During his tenure as head of the Department of Government Efficiency (DOGE), Elon Musk reportedly backed the plan to shut down the agency.
Rubio pointed to several reasons for ending USAID’s operations. He emphasized the lack of reciprocal support from aid-receiving nations, citing that in 2023, Sub-Saharan African countries supported the U.S. in only 29% of key UN votes, despite receiving $165 billion in U.S. aid since 1991.
He also noted the low return on investment in the Middle East and North Africa, where over $89 billion in aid has not translated into improved U.S. favorability compared to China. Additionally, Rubio pointed to more than $9.3 billion spent in Gaza and the West Bank since 1991, claiming it resulted in increased anti-American sentiment and support for Hamas-linked entities.
Criticism was also directed at non-governmental organizations (NGOs), with Rubio accusing their executives of living “five-star lifestyles” at the expense of the American taxpayer, while the intended beneficiaries remained underserved.
Going forward, all foreign assistance programs that align with administration policies will be administered directly by the U.S. State Department. Rubio said this transition will bring more oversight, efficiency, and alignment with U.S. strategic interests, particularly in countering China’s global influence.
“We will not apologize for ensuring that U.S. foreign aid advances our values and supports our national security,” Rubio emphasized.