The Trump administration is set to eliminate 83% of the programmes under the United States Agency for International Development (USAID) and shift the remaining ones to the State Department, Secretary of State Marco Rubio announced on Monday (March 10).

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This decision shows the swift dismantling of the US' independent humanitarian agency, which had been on the hit list of both President Donald Trump and billionaire Elon Musk. The remaining 1,000 USAID programmes will now be managed under the State Department’s oversight.

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Rubio defends cuts

In a post on X, Rubio said, "After a 6-week review we are officially cancelling 83% of the programmes at USAID. The 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States."

He added, "In consultation with Congress, we intend for the remaining 18% of programmes we are keeping (approximately 1000) to now be administered more effectively under the State Department. Thank you to DOGE and our hardworking staff who worked very long hours to achieve this overdue and historic reform." DOGE, a Musk-backed office, has placed officials in key government roles and played a significant part in reducing federal spending.

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Musk reacts

Musk, who had previously clashed with Rubio, responded to the announcement by saying, “Tough, but necessary.”

“Good working with you. The important parts of USAID should always have been with Dept of State,” Musk added. He has long been a vocal critic of USAID, even once suggesting that it should be "fed into a woodchipper."

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A court filing in late February revealed that the administration had already cancelled nearly 5,800 USAID awards. It stated that Rubio had "made a final decision with respect to each award, on an individualised basis, affirmatively electing to either retain the award or terminate it pursuant to the terms of the instrument or independent legal authority as inconsistent with the national interests and foreign policy of the United States."

The administration’s decision to freeze foreign aid payments and dismantle USAID has faced legal opposition. A federal judge permitted the government to proceed with suspending and terminating staff. However, another judge ruled that the administration must pay nearly $2 billion in outstanding fees for humanitarian work.

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The Supreme Court upheld this ruling last week, though it did not specify when the payments would be made.

USAID has historically distributed billions of dollars annually to combat poverty, address diseases, and respond to crises such as famines and natural disasters. It also supports democracy-building initiatives, independent media, and social development projects.

(With inputs from agencies)