The United States Agency for International Development (USAID) will officially cease its foreign aid operations starting July 1, 2025. From now on, foreign aid programs that align with the administration’s policies and promote American interests will be managed by the U.S. Department of State.
This is reported by Kyiv24
“Where once there was a rainbow of unknown logos on life-saving assistance, there will now be one recognizable symbol: the American flag. Recipients deserve to know that the aid they receive is not a handout from an unknown NGO, but an investment from the American people.”
New Aid Strategy
U.S. Secretary of State Marco Rubio explained that USAID previously focused on the UN, multinational NGOs, and the global community, rather than American taxpayers who funded its budget. The agency presented its programs as charitable rather than as tools of American foreign policy.
Under the new rules, U.S. aid will become targeted and time-limited. Priority will be given to countries that have demonstrated the ability and willingness to help themselves. Resources will be directed to areas where a multiplicative effect and private sector involvement, including American companies and global investments, are possible.
History and Transformation of USAID
USAID was established in 1961 and had a planned budget of $42.8 billion for 2025 to provide assistance to other countries. In early 2025, U.S. President Donald Trump froze USAID assistance to foreign states for 90 days as part of a policy to reduce government spending.
According to the new policy, the U.S. Department of State has taken over the management of USAID. According to Marco Rubio, this will allow for programs to be carried out with greater accountability, strategy, and effectiveness. In March 2025, it was announced that 83% of the agency’s programs would be canceled.