The U.S. Agency for International Development (USAID) is undergoing a dramatic shake-up as the Trump administration aggressively cuts government spending. By midnight yesterday, most employees at the agency faced either termination or administrative leave, marking one of the most significant workforce reductions in its history.
Thousands of Jobs Slashed
According to an official notice on USAID’s website, approximately 1,600 U.S.-based employees have been laid off in a sweeping “reduction-in-force” initiative. The remaining staff—except those handling mission-critical functions, core leadership roles, or specially designated programs—have been placed on administrative leave worldwide.
This move aligns with former President Donald Trump’s long-standing goal to scale back USAID, an agency that boasts over 10,000 employees and runs a wide range of humanitarian and development programs globally.
Legal Challenges and a Green Light to Cut
Earlier this month, USAID had announced its intent to place all employees on administrative leave. However, the decision was met with legal pushback. On Friday, a federal judge lifted a previous order that had temporarily blocked the Trump administration’s efforts to drastically reduce USAID’s operations.
Impact on Staff and Overseas Operations
Employees who are expected to remain in their positions were notified by management by 5 PM yesterday. For staff stationed abroad, USAID has assured that return travel expenses will be covered.
“In the coming week, we will provide details on how to retrieve personal items from former USAID workspaces and return government-issued devices,” the agency stated in its announcement.
Trump and Musk’s Accusations of Fraud
Trump and his allies, including billionaire donor Elon Musk, have accused USAID of being plagued with “fraud”—though they have provided little concrete evidence to support these claims. Despite such allegations, USAID’s budget of over $40 billion (RM176 billion) is mandated by Congress and funds crucial initiatives, including governance programs and life-saving food assistance.
While the agency has faced scrutiny in the past for high overhead costs and concerns about the effectiveness of some of its programs, its role in global development remains significant. The coming weeks will reveal more about how these cuts will impact ongoing humanitarian efforts and international partnerships.
