Mass Layoffs at USAID as Trump Administration Slashes Spending

 

The U.S. Agency for International Development (USAID) has announced that most of its employees will be either fired or placed on administrative leave by midnight on Sunday, marking a significant step in the Trump administration’s efforts to reduce government spending.

 

According to a statement on USAID’s website, approximately 1,600 employees based in the U.S. will be laid off under a “reduction-in-force” plan. Meanwhile, all other directly hired staff worldwide will be placed on administrative leave, except those involved in mission-critical functions, core leadership, or specially designated programs.

 

This move follows an earlier announcement that all USAID staff would be placed on administrative leave—a decision that was temporarily halted due to legal challenges. However, a federal judge lifted the pause on Friday, allowing the administration to proceed with its plans to scale down the agency, which employs more than 10,000 people and manages humanitarian and development programs globally.

 

Remaining staff members who are required to continue working were expected to receive notifications from management by 5:00 PM (2200 GMT) on Sunday. USAID has also confirmed that it will cover return travel expenses for overseas staff.

 

“In the coming week, we will provide details on how to retrieve personal items from the former USAID workspaces and return government-issued devices,” the agency stated.

 

President Donald Trump and his allies, including billionaire Elon Musk, have accused USAID of widespread fraud, though they have provided little evidence to support these claims. The agency, which operates on a budget exceeding $40 billion mandated by Congress, has long been a crucial tool of U.S. global influence, offering governance programs and life-saving food assistance.

 

Despite some criticism over its operational costs and program effectiveness, USAID has played a central role in U.S. “soft power” diplomacy, using aid and development projects to strengthen international relations.

 

The layoffs and restructuring mark a dramatic shift in U.S. foreign aid policy, raising questions about the future of America’s humanitarian efforts worldwide.