Trump To Merge USAID With State Department Will Be Sending Out RIF Notices
The United States Agency for International Development (USAID) formally notified Congress on Friday that the agency will transfer the majority of its functions and active programs to the U.S. Department of State. The restructuring marks a major realignment in U.S. foreign aid policy and represents the most extensive overhaul of USAID since its founding in 1961.
All USAID personnel, including foreign and civil service staff, are set to receive Reduction in Force (RIF) notices. An estimated 4,600 employees will be affected. According to a USAID official, staff will begin receiving notifications via email within minutes of the announcement. Each notice will include a final separation date, either July 1, 2025, or September 2, 2025.
The move reflects the Trump administration’s broader strategy to consolidate foreign aid operations under the Department of State, aligning all foreign policy and assistance initiatives directly with presidential priorities. Officials argue the change will streamline operations, reduce duplication, and increase accountability and strategic effectiveness.
USAID Deputy Administrator and Chief Operating Officer Jeremy Lewin stated that the agency had deviated from its original mission of responding to global crises and supporting allies. “The independent establishment of USAID has grown inefficient and unwieldy, too often contradicting rather than reinforcing the foreign policy of the President and nation,” he said in a statement.
Lewin emphasized that the move is not an elimination of U.S. foreign assistance, but a restructuring designed to increase efficiency and focus on measurable returns.
“By bringing USAID’s core life-saving and strategic aid programs under the umbrella of the State Department, this Administration will significantly enhance the efficiency, accountability, uniformity, and strategic impact of foreign assistance programs,” he said.
The Department of State will begin a parallel hiring process to assess its staffing needs and will consider USAID employees for roles where appropriate. Due to federal rules, the agency must wait 60 days before rehiring individuals into other government roles. This timeline allows for transition planning ahead of the formal shutdown of USAID operations.
Currently, USAID oversees 898 programs with a total estimated cost of $78 billion, including $8.3 billion in remaining unobligated funds. Since January 20, the agency has terminated 5,341 awards, totaling $75.9 billion, and has recaptured $27.7 billion in unobligated funds.
The transition period will span the next several months, during which USAID and the State Department will coordinate the handover of all operations. Officials anticipate full program integration or closure by September 2, 2025.