Washington, United States (Enmaeya News) — The U.S. Agency for International Development (USAID), the country’s largest foreign aid agency, has experienced significant disruptions over the past six months. Following an executive order issued on Jan. 20, 2025, that froze foreign aid funding pending a 90-day review, USAID saw widespread program halts, staff reductions, and operational changes.
Though the planned review did not appear as scheduled, the freeze triggered an immediate stop-work order affecting new and ongoing projects. Thousands of staff members were placed on administrative leave, and many critical humanitarian programs faced uncertainty.
Aid officials described the situation as challenging and unpredictable.
“It feels like being in a boxing ring, facing multiple attacks with no clear way to defend,” said one aid official who spoke in January.
Rapid Unraveling
One week after the funding freeze, USAID partners around the world received stop-work notices. Nonprofits and contractors struggled to understand the full impact while USAID began reducing its own workforce. On Jan. 28, nearly 60 senior executives were placed on leave for noncompliance with the freeze, and contractors supporting health and humanitarian programs were dismissed.
Marcia Wong, former deputy assistant administrator for humanitarian aid, noted early concerns that these actions could fundamentally change USAID’s operations.
On Jan. 29, USAID issued a blanket stop-work order to all implementing partners, including those not yet directly informed. Questions arose over whether PEPFAR, the U.S. global HIV/AIDS program, would be exempt. Secretary of State Marco Rubio announced waivers for lifesaving aid programs, but these were reportedly difficult to obtain, and payments to organizations continued to face delays.
Department of Government Efficiency and Further Changes
The Department of Government Efficiency (DOGE), led by Elon Musk, began overseeing spending cuts at USAID. On Feb. 2, around 1,000 contractors lost access to USAID systems without prior notice, limiting communication for those working in conflict zones. Shortly afterward, USAID staff in Washington were notified of upcoming office closures.
A USAID official described the situation as “like being trapped inside a burning house with no way to stop the fire,” reflecting the strain experienced by personnel.
By Feb. 7, nearly all USAID direct hires were placed on administrative leave. Initial plans called for reducing the workforce to fewer than 300 employees, later adjusted to approximately 600.
Legal Challenges and Program Cuts
The widespread program cancellations prompted lawsuits from advocacy groups and major contractors in early February. Courts issued mixed rulings, with some temporarily blocking layoffs and stop-work orders, while others allowed them to proceed. By late February, about 1,600 USAID staff remained on leave.
The administration also moved to reduce or eliminate smaller federal agencies connected to foreign aid, including the U.S. African Development Foundation and the U.S. Institute of Peace.
Despite court orders to restore funding, the administration announced in mid-March plans to cut 83% of USAID programs, canceling 5,200 projects and transferring roughly 1,000 to the State Department under a new organizational structure.
In April, the State Department unveiled a reorganization aimed at modernization, involving changes across multiple bureaus and offices.
Budget Proposal and Future Outlook
The 2026 budget proposal requested an 85% reduction in foreign aid spending. Lawsuits continue, and many USAID employees remain on leave while most programs stay suspended.
Secretary Rubio defended the funding changes, stating in May, “No children are dying on my watch.”
As the agency’s restructuring continued, about 300 USAID staff transferred to the State Department to assist with closing out operations. However, a clear long-term plan for U.S. foreign aid has yet to be publicly outlined.
A former senior USAID official told Devex in June, “Everyone is quick to say what USAID did wrong. Nobody can say what they want to do instead.”
