The foreign aid agency has failed to advance America’s interests, the US Secretary of State has said

Washington has formally shut down its foreign aid agency USAID, Secretary of State Marco Rubio has announced, branding the organization inefficient and a failure in its core mission.

Long the primary vehicle for funding political and development projects abroad, USAID had “fallen well below” its obligations to advance US interests, Rubio said in a statement on Tuesday. With more than $715 billion in inflation-adjusted spending over the decades, the agency promoted “anti-American ideals and groups,” including DEI, censorship, and regime change operations, while fostering an “NGO industrial complex,” he added.

”This era of government-sanctioned inefficiency has officially come to an end… As of July 1st, USAID will officially cease to implement foreign assistance,” Rubio stated, adding that the State Department has officially absorbed the agency’s functions.

US President Donald Trump launched the process of dismantling USAID shortly after returning to office in January, after accusing the organization – often criticized by conservatives as promoting liberal causes – of being run by “radical lunatics” and facilitating corruption “at levels rarely seen before.”

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As part of Trump’s broader federal waste-cutting initiative, thousands of USAID employees were fired or placed on leave, and billions in aid contracts were frozen or scrapped entirely. The effort has been led by the Department of Government Efficiency (DOGE), a new body tasked with reducing bureaucratic overhead across federal programs.

The consequences of USAID’s closure have drawn concern from health experts and development advocates.

In addition to funding NGOs abroad, USAID played a key role in financing global healthcare programs. Critics warn its dismantling could have long-term effects on global health and development.

According to a study published Monday in The Lancet, the funding cuts could result in over 14 million preventable deaths by 2030 from diseases such as HIV/AIDS and malaria. The authors noted that between 2001 and 2021, USAID-backed programs were estimated to have saved over 91 million lives in low- and middle-income countries.