The United States Agency for International Development (USAID) has announced that the majority of its employees will either be placed on administrative leave or dismissed by midnight on Sunday. The decision is a continuation of President Donald Trump’s broader effort to shrink federal agencies and cut foreign aid spending.
According to a notice posted on USAID’s website, approximately 1,600 employees based in the United States will be laid off as part of a “reduction-in-force” initiative. Meanwhile, all other staff members directly employed by USAID will be placed on administrative leave globally, with the exception of those engaged in “mission-critical functions, core leadership, and specially designated programs.”
This move represents a significant step in Trump’s plan to scale down USAID, an organization with over 10,000 employees that operates humanitarian and development programs worldwide. Earlier this month, the agency had already signaled its intention to place all staff on administrative leave, a directive that quickly faced legal challenges. However, a federal judge lifted the suspension order on Friday, allowing the administration to proceed with its restructuring plan.
The agency confirmed in a statement on Sunday that employees who will continue working would be notified by management no later than 5:00 PM (2200 GMT). Additionally, USAID assured overseas staff that it would cover return travel expenses for those affected by the layoffs.
“In the coming week, we will provide details on how to retrieve personal items from the former USAID workspaces and return government-issued devices,” the statement read.
The Trump administration has long been critical of USAID, with claims—though largely unproven that the agency is riddled with fraud. Supporters of the budget cuts, including billionaire donor Elon Musk, argue that USAID is plagued by inefficiencies and excessive overhead costs. Nevertheless, USAID’s $40 billion annual budget is allocated by Congress, funding programs that range from governance and economic development to life-saving food assistance for impoverished nations.
Despite criticisms regarding the efficiency of some of its programs, USAID has been a key instrument of American “soft power,” leveraging humanitarian and development aid to build international influence. The agency’s role in global diplomacy has historically positioned the U.S. as a leader in foreign aid, but the current administration’s moves signal a dramatic shift away from this approach.
With these latest developments, the fate of USAID remains uncertain. The coming weeks will determine how the agency, its employees, and its global partners will adapt to this unprecedented downsizing.
