USAID to Dismiss or Place Most Workers on Leave Over Budget Slashes

The US Agency for International Development (USAID) is reportedly planning to lay off or place on leave most of its workforce, as the Trump administration advances its aggressive cost-cutting strategy.

A notice on USAID’s website confirmed that around 1,600 employees based in the United States will lose their jobs in a reduction-in-force effort. Meanwhile, the agency’s global workforce will be placed on administrative leave, except for those involved in mission-critical functions, core leadership roles, or specially designated programs.

This move is a significant step in Donald Trump’s long-standing efforts to dismantle USAID, which employs over 10,000 people worldwide and manages billions in humanitarian and development programmes.

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Earlier this month, the agency had announced an administrative leave directive for all staff, though it was temporarily blocked by legal challenges. However, a federal judge lifted the order on Friday, clearing the way for the administration’s cuts to proceed.

USAID to Dismiss or Place Most Workers on Leave Over Budget Slashes

USAID stated on Sunday that employees who will continue working will receive official notification by 5:00 pm (2200 GMT). The agency also confirmed it would cover return travel expenses for staff based overseas.

“In the coming week, we will provide details on how to retrieve personal items from the former USAID workspaces and return government issued devices,” USAID said in its statement.

Trump and his billionaire ally Elon Musk have accused USAID of being riddled with fraud, though they have provided little evidence to support their claims.

With an annual budget exceeding $40 billion, USAID is mandated by Congress and runs a wide range of programs, from governance initiatives to life-saving food assistance. While the agency has long been criticized for high overhead costs and questions about program effectiveness, it has also played a key role in US foreign policy, serving as a tool of global soft power.

The massive reduction in USAID’s workforce raises concerns over the future of US-funded humanitarian aid. Critics argue that dismantling the agency could have far-reaching consequences, especially in regions dependent on US assistance.

For now, the Trump administration’s bold restructuring of USAID has set the stage for one of the most dramatic shake-ups in the history of US foreign aid policy.

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