USAID workforce on leave as Trump reshapes foreign aid

Thousands of USAID employees face uncertainty as the agency undergoes sweeping restructuring.

A cargo container displaying signage for the U.S. government's humanitarian agency, USAID, stands beside a tricycle in Manila on February 4, 2025. Photo by Jam Sta Rosa/AFP/Getty Images

By Clarisa Sendy and Widya Putri

The U.S. Agency for International Development (USAID) is facing a dramatic workforce reduction, with nearly its entire global staff placed on leave by the end of Friday, according to an official memo posted online Tuesday night. The decision, which impacts thousands of employees worldwide, has sparked uncertainty about the agency’s future under the Trump administration.

The notice outlined that only a small group of “designated personnel responsible for mission-critical functions, core leadership, and specially designated programs” would be exempt from the mass leave order. Employees classified as direct hires will be placed on paid leave, while those stationed abroad will be required to return to the United States within 30 days. USAID has pledged to cover travel expenses for the relocations. Contractors, unless deemed essential, will be laid off.

This sudden restructuring has sent shockwaves through the agency, raising concerns among lawmakers, diplomats, and aid workers. Many believe the move is part of a broader effort by the Trump administration to dismantle USAID and shift its responsibilities under the State Department, which is now led by Secretary of State Marco Rubio.

USAID employees face uncertainty as shutdown looms

USAID, which employs approximately 10,000 people globally, has been in a state of turmoil since President Trump issued an executive order last month to halt all foreign aid. The latest announcement exacerbates fears that the agency’s humanitarian and development operations could soon be shuttered.

In a strongly worded internal email obtained by The New York Times, the American Foreign Service Association, which represents career diplomats, condemned what it called an “unnecessary and drastic action.” The organization also stated it was “exploring legal avenues” to protect its members from forced leave or job losses.

The news of the furloughs came just hours after 1,400 U.S.-based USAID employees were informed they had been placed on indefinite administrative leave, according to two sources familiar with the order. Around 100 senior officials had already been sidelined, and several hundred contractors were terminated through stop-work orders.

Pete Marocco, a controversial State Department official overseeing USAID’s day-to-day operations, issued a memo confirming that the 1,400 employees would remain on leave “until otherwise notified.” His leadership has been met with internal resistance, with critics accusing him of fast-tracking an agenda aimed at gutting the agency.

Families scramble as USAID staff face forced relocations

The directive has caused significant distress for USAID personnel stationed abroad, many of whom are in the middle of long-term assignments. Employees are now scrambling to make urgent relocation plans while grappling with frozen projects and uncertain futures.

The timing has also created logistical challenges for families. Many USAID employees have children enrolled in foreign schools, with semesters in progress. The agency’s public notice indicated that exceptions may be considered on a case-by-case basis, particularly for education, medical, or pregnancy-related concerns.

However, executing such a large-scale relocation will be a daunting task. The U.S. government has not attempted a mass withdrawal of personnel on this scale in recent history. Some USAID employees are based in conflict zones, where evacuation would require military assistance. The financial burden of this operation is also expected to be immense.

Shutdown chaos as USAID headquarters locks out employees

Further complicating the situation, USAID’s Washington headquarters has been effectively shut down. Political appointees from the Trump administration reportedly ordered the closure this week, locking employees out of their email accounts and internal systems.

Adding to the turmoil, a group of young men from a task force led by billionaire Elon Musk—who has been acting as a special government adviser—made sweeping changes to the agency’s technology infrastructure. The group allegedly attempted to access classified materials within a secure area, leading to a confrontation with USAID’s top security directors. Following the dispute, both security officials were placed on leave. The agency’s chief of staff resigned shortly afterward.

Trump administration’s push to cut foreign aid funding

The restructuring of USAID aligns with the Trump administration’s broader efforts to drastically reduce U.S. foreign aid spending. The agency oversees a significant portion of the country’s aid budget, which totals between $60 billion and $70 billion annually—less than 1% of total federal spending.

President Trump and his advisers, including Musk, have been vocal about their desire to eliminate what they view as unnecessary foreign aid expenditures. Their goal is to redirect funding toward domestic priorities while consolidating USAID’s functions within the State Department.

The changes have also affected the State Department itself. On Monday, officials issued a stop-work order to about 60 Washington-based contractors working on democracy and human rights programs focused on authoritarian regimes. The move signals a broader rollback of foreign aid initiatives that promote democratic governance.

Marco Rubio defends USAID overhaul amid criticism

U.S. Secretary of State Marco Rubio disembarks from a plane at La Aurora International Airport in Guatemala City on February 4, 2025. Photo by Johan Ordonez/AFP/Getty Images

Senator Marco Rubio, who took control of USAID as acting administrator on Monday, has defended the restructuring efforts, insisting that the administration’s actions are not about eliminating foreign aid but rather reforming its management.

“This is not about getting rid of foreign aid,” Rubio said in a Fox News interview. “But we have rank insubordination. USAID employees have been completely uncooperative, so we had no choice but to take dramatic steps to bring this thing under control.”

His remarks have been met with skepticism from Democratic lawmakers, who argue that dismantling USAID is not within the administration’s legal authority.

Legal battle looms over USAID’s fate

Congressional Democrats have vowed to challenge the administration’s actions, citing a recent Congressional Research Service report stating that the president does not have the unilateral power to abolish USAID. The report emphasizes that congressional approval would be required to restructure, merge, or eliminate the agency.

“Because Congress established USAID as an independent agency within the executive branch, the president does not have the authority to abolish it,” the report states.

Despite this, leading Republicans have supported the move, framing it as a necessary step toward fiscal responsibility. Senator Jim Risch, chairman of the Senate Foreign Relations Committee, applauded the effort, arguing that merging USAID with the State Department is an idea that has been discussed for years.

“I’m supportive of the Trump administration’s efforts to reform and restructure the agency in a way that better serves U.S. national security interests,” Risch said.

The uncertain future of USAID

As thousands of USAID employees face an uncertain future, many are left wondering whether the agency will survive in its current form. With Congress divided and legal challenges likely, the next few months could determine whether USAID continues as an independent entity or becomes a subsidiary of the State Department.

For now, the agency’s workforce remains in limbo, waiting for further instructions while navigating one of the most turbulent moments in its history.