The U.S. foreign aid agency could shrink from 10,000 employees to under 300 amid sweeping budget reductions.
The United States Agency for International Development (USAID) is on the brink of a major downsizing, potentially cutting its workforce from around 10,000 to fewer than 300 employees globally. This drastic reduction follows significant budget cuts under the Trump administration, which has placed most employees, including those stationed abroad, on administrative leave as part of a broader cost-cutting initiative.
Affected staff will be notified that they are being placed on leave starting at midnight Friday, with only a small number of essential workers remaining. A notice on the agency’s website indicates plans for the return travel of employees and the termination of non-essential contractors. Of the current workforce, only 294 individuals have been identified as essential, according to one of the unions representing USAID staff.
These cuts, which are backed by President Trump’s advisor Elon Musk, have caused disruptions to global aid programmes, with many already frozen in multiple countries. Public opinion has shown increasing scepticism regarding foreign aid, particularly among Republicans, where a March 2023 AP-NORC poll revealed that as many as 90% felt the U.S. was overspending on foreign assistance.
The United States is the world’s largest donor of humanitarian aid, with a presence in over 60 countries. Much of its efforts are carried out through contractors, making the proposed cuts even more consequential. The reduction in USAID staff would severely impact the agency’s ability to deliver critical services worldwide, something former USAID Administrator Brian Atwood has called “outrageous.” Atwood warned that such a move could devastate the agency that has saved millions of lives.
Unions representing USAID employees, including the American Foreign Service Association (AFSA), have filed a lawsuit against the plan, which they argue is unconstitutional. The suit claims that the dismantling of USAID is not authorised by Congress and violates federal law. The lawsuit demands the immediate appointment of a new acting director for USAID, the reopening of its facilities, and the restoration of its grants and contracts, among other actions. It also seeks a judicial halt to the implementation of the plan, citing the urgency of resuming vital aid programmes.
According to the lawsuit, the Trump administration’s actions have resulted in a global humanitarian crisis, halted crucial aid operations, and jeopardised American jobs and national security. Thousands of USAID employees are set to be affected, with a formal notice confirming the leave for all direct hire personnel starting at 11:59 PM EST on Friday.
Despite the cuts, U.S. Secretary of State Mike Pompeo defended the administration’s position, assuring USAID workers in Guatemala that the U.S. would continue its foreign aid efforts, though he emphasised that these initiatives must align with U.S. national priorities.
