The Trump administration has prepared a proposal to review the structure of distributing billions of dollars in foreign aid, according to an internal memo that calls for funding fewer areas that it believes better serve US geopolitical interests.
This is reported by Reuters.
The proposal, which Reuters has seen, comes amid efforts by US President Donald Trump and billionaire Elon Musk to shrink the federal government, which they say is misusing taxpayer money for purposes that do not serve US interests.
The memo argues that the current structure of US foreign aid is too broad, too expensive and has failed to reduce some countries' dependence on American aid. The funding should be distributed with a narrower, more strategic focus.
“This blueprint proposes a re-imagined U.S. international assistance structure and set of operating principles that promises 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 Secretary of State Marco Rubio for review, according to a source familiar with the document.
While it was unclear how much of the proposal would be adopted, it is one of the most detailed studies yet of how the Trump administration intends to transform USAID, an organization founded in 1961 by Democratic President John F. Kennedy.
The proposal would eliminate nearly two dozen USAID bureaus and rename the agency the U.S. Agency for International Humanitarian Assistance.
The new “specialized” agency would be embedded within the State Department, with its mandate limited to humanitarian assistance, disaster response, global health, and food security.
It also proposes that any “politically-oriented programs,” such as those promoting democracy, religious freedom, and women’s empowerment, be transferred to the State Department for direct management.
On his first day in office, Trump ordered a 90-day pause in all U.S. foreign aid. This action, along with subsequent orders to halt many USAID programs, jeopardized the delivery of vital food and medical aid, throwing global humanitarian relief efforts into chaos. USAID itself has been largely dismantled, with more than 80% of its grants cut.
On Tuesday, a federal judge blocked Musk and the Department of Government Efficiency from continuing to work on closing 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’s operations or whether it would result in the reinstatement of any of its employees. The agency’s new leaders, some of whom were appointed this week, outlined next steps for the coming months in a separate internal USAID email sent on Wednesday.
One key priority, the email, obtained by Reuters, said, will be to administer about 1,000 ongoing life-saving humanitarian assistance programs.
“We are committed to ensuring ongoing programs remain functional and can service beneficiaries in need,” the letter said.
Other priorities include ensuring the “safety, dignity, and productivity” of USAID personnel during the transition, and working with Congress and Rubio to articulate a vision for how USAID will transition 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 serves as deputy administrator for policy. Levin was appointed to DOGE this month by the chief operating officer of the Consumer Financial Protection Bureau.
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