U.S. to Permanently Shut Down USAID

On March 28, the U.S. Department of State and the United States Agency for International Development (USAID) notified Congress of their decision to implement a major organizational restructuring. This includes transferring select USAID functions to the Department of State by July 1, 2025, and terminating programs not aligned with current Administration priorities.

U.S. Secretary of State Marco Rubio explained, ‘Foreign assistance done right can advance our national interests, protect our borders, and strengthen partnerships with key allies. Unfortunately, USAID strayed from its original mission long ago, leading to minimal returns and excessive costs.’

According to Reuters, thousands of USAID employees and Foreign Service officers learned through an internal memo that positions not legally mandated will be phased out in July and September.

Despite concerns surrounding these job cuts and funding reductions, the U.S. government confirmed it will continue providing essential assistance to Myanmar and Thailand in response to the recent earthquake, following President Trump's discussion with Myanmar officials.

Established in 1961, USAID operates globally, with regional missions in Central and Southern Africa, Asia, the Middle East, Latin America and the Caribbean, and Europe. In Ukraine, USAID programs have been particularly active in fighting corruption, supporting economic development, enhancing energy security, and strengthening democratic governance.

Since Russia’s full-scale invasion on February 24, 2022, USAID has provided Ukraine with $2.6 billion in humanitarian aid and $5 billion for development assistance, alongside an additional $30 billion in direct budgetary support.

The closure of USAID programs places numerous Ukrainian NGOs and independent media outlets at significant risk. However, according to Gaze, the European Union is currently considering a €10 million aid package aimed at supporting Ukraine's independent media.