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The new "specialized" body will be incorporated into the State Department and its mandate will be limited to humanitarian assistance, disaster response, global health and food security.
The Trump administration has prepared a proposal to overhaul the structure of how Washington distributes billions of dollars in foreign aid, according to an internal memo that calls for funding fewer areas that it sees as better aligned with US geopolitical interests.
The proposal, seen by Reuters, comes amid an unprecedented push by President Donald Trump and billionaire Elon Musk to shrink the federal government, which they say is misusing taxpayer money for causes that do not advance US interests.
Trump ordered a 90-day pause in all U.S. foreign aid on his first day in office. That action, and subsequent stop-work orders that halted many U.S. Agency for International Development (USAID) programs around the world, have jeopardized the delivery of life-saving food and medical aid, throwing global humanitarian relief efforts into chaos.
USAID itself has largely disintegrated, with a large portion of its staff furloughed or dismissed and more than 80% of its grants cut.
The memorandum argues that the current structure of U.S. foreign aid is too broad, too costly, and has failed to reduce some countries' dependence on U.S. aid. It says funding should be divided into narrower strategic focus.
" This plan proposes a reimagined U.S. international assistance structure and a set of operating principles that promise measurable returns to America, while also projecting American soft power, enhancing our national security; and countering global competitors, including China," the memo said.
The internal memo will be sent to U.S. Secretary of State Marco Rubio for review, a source familiar with the document said. The memo was first reported by Politico.
While it was not clear how much of the proposal would be approved, it represents one of the most detailed examinations of how the Trump administration intends to move forward with USAID, an organization founded in 1961 by Democratic President John F. Kennedy.
The proposal calls for eliminating nearly two dozen USAID offices and renaming the agency the U.S. Agency for International Humanitarian Assistance.
The new "specialized" body will be incorporated into the State Department and its mandate will be limited to humanitarian assistance, disaster response, global health and food security.
He also proposes that any "politically oriented programs," such as promoting democracy, religious freedom, and women's empowerment, be transferred to the State Department to be handled directly.
" We are committed to implementing President Trump and Secretary Rubio's foreign policy objectives by being as innovative, agile, and focused as possible ," a State Department spokesperson said when asked about the memorandum.
A federal judge on Tuesday blocked Musk and the Department of Government Efficiency from proceeding with the shutdown of USAID, saying their efforts to shut down the agency likely violate the U.S. Constitution.
It was not immediately clear how the decision would affect USAID operations or whether it would lead to the reassignment of any of its staff. The agency’s new leaders, some of whom were installed this week, outlined the next steps for the coming months in a separate internal USAID email sent Wednesday.
One of the top priorities, they said in the first email from Reuters, would be managing about 1,000 ongoing life-saving humanitarian assistance programs.
" We are committed to ensuring that ongoing programs remain operational and can serve beneficiaries in need ," he said.
Other priorities are to ensure the "safety, dignity and productivity" of USAID personnel during the transition and to work with Congress and Rubio to formulate a vision for how USAID will hand over to the State Department.
The memorandum was signed by Kenneth Jackson, who was named USAID’s chief financial officer this week, and Jeremy Lewin, who was named chief operating officer and is serving as deputy administrator for policy. Lewin was appointed to DOGE this month by the COO of the Consumer Financial Protection Bureau./Adapted from “Pamphlet” by “Reuters”
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