The Trump administration is moving to strip a slimmed-down US Agency for International Development of its independence and put it under State Department control, two sources familiar with the discussions said on Friday, in what would be a significant overhaul of how Washington allocates US foreign aid.
The National Security Council hosted discussions this week on the topic, a person familiar with the matter said. A US official confirmed there have been discussions about such a move but said no final decisions had been made.
The administration last week froze US foreign aid, saying it is conducting a review to ensure the tens of billions of dollars worth of such assistance worldwide is aligned with President Donald Trump's "America First" foreign policy and not a waste of taxpayer money.
One source said the White House was exploring legal authorities that Trump could use to issue an executive order to end USAID's independence and that he could sign such a directive as soon as Friday night or Saturday.
"Watch USAID tonight," Democratic Senator Chris Murphy, a member of the Senate Foreign Relations Committee, said in a post on X on Friday evening.
It was unclear if Trump has the legal authority to bypass Congress and order USAID's merger into the State Department.
Senate Minority Leader Chuck Schumer, citing a "rumor" that Trump planned to dissolve USAID as an independent agency, said in an X post that such a move would be "illegal and against our national interests."
Photographs of USAID offices reviewed by Reuters showed that the plaques embossed with the agency's official seal had been removed, a sign that the merger into the State Department was in the works.
USAID and the White House did not immediately respond to requests for comment. The State Department referred questions to USAID.
The source said that officials from the newly established Department of Government Efficiency led by billionaire and Trump adviser Elon Musk were also involved in the deliberations and frequented USAID headquarters in downtown Washington this week.
Since taking office on January 20, Trump has issued a raft of executive orders that fulfill a campaign vow to remake a federal bureaucracy that he accuses of opposing him during his first term.
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. One source with knowledge of USAID's workings said the move would be a big departure in particular for the agency's humanitarian operations.
USAID has in the past been able to assist countries with which the United States has no diplomatic relations, including Iran. That has sometimes helped build bridges, the source said, adding that this benefit could be lost if its operations were purely tied to political objectives.
If the move were to proceed, it would eliminate the Cabinet post for the USAID administrator created by former President Joe Biden. Trump has yet to name a USAID administrator, a move that added to concerns that he might be considering taking away its autonomy.
Trump's freeze on most US foreign aid has already upended the development sector, both at home and overseas, forcing hundreds of layoffs and putting thousands of other jobs at risk. 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 (Sh9.3 trillion) 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 per cent of all humanitarian aid tracked by the United Nations in 2024.
Following Trump's executive order last week, the State Department issued worldwide stop-work directives, effectively freezing all foreign aid with the exception of emergency food assistance in a move that experts warned risked killing people.
US Secretary of State Marco Rubio issued earlier this week an additional waiver for "life-saving humanitarian assistance" while Washington undertakes the 90-day review Trump initiated just hours after he came into office on January 20.
Current and former USAID officials told Reuters this week that a purge of senior USAID staff appeared designed to silence any dissent.
A former senior USAID official said bringing the agency under the State Department would be a "seismic shift."
"This moves the United States government to a place where the humanitarian voice will not be in high-level policy discussions," the official said.
