USAID officially stopped implementing foreign assistance as of July 1, as the Trump administration seeks to realign international aid with its policies, U.S. Secretary of State Marco Rubio announced.

"Foreign assistance programs that align with administration policies — and which advance American interests — will be administered by the State Department," Rubio said in a statement on Substack.

The Trump administration has set its sights on the U.S.'s chief foreign aid agency, accusing it — despite little evidence — of fraud and of promoting a "liberal" or "leftist" agenda. Roughly 83% of USAID's programs, or around 5,200 contracts, were terminated in March, and thousands of workers were laid off.

Founded in 1961, USAID has played a crucial role in humanitarian relief worldwide and has overseen thousands of programs supporting democracy-building, human rights, and economic development.

"USAID had decades and a near-infinite taxpayer budget to advance American influence, promote economic development worldwide, and allow billions to stand on their own two feet," Rubio said.

"Beyond creating a globe-spanning NGO industrial complex at taxpayer expense, USAID has little to show since the end of the Cold War."

Contradicting Rubio's comments, experts and former U.S. officials have criticized the decision and pointed to potentially devastating humanitarian consequences. Research by The Lancet estimated that USAID funding cuts could result in 14 million deaths by 2030, including 4.5 million children younger than 5.

"We will not apologize for recognizing America's longstanding commitment to life-saving humanitarian aid and promotion of economic development abroad must be in furtherance of an America First foreign policy," Rubio said.

The chief U.S. diplomat presented the step as part of President Donald Trump's broader policies aimed at requiring international allies and partners to pay a greater share for projects around the world.

"Americans should not pay taxes to fund failed governments in faraway lands. Moving forward, our assistance will be targeted and time limited. We will favor those nations that have demonstrated both the ability and willingness to help themselves," Rubio said.

Since the start of Russia’s full-scale invasion, USAID has provided $2.6 billion in humanitarian aid to Ukraine, as well as $5 billion in development assistance and more than $30 billion in direct budget support to Kyiv.

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The White House has recommended terminating U.S. funding for multiple programs that investigate war crimes worldwide, including Russian war crimes in Ukraine, Reuters reported on June 26.

Since U.S. President Donald Trump's inauguration in January, the administration has imposed sweeping layoffs and budget cuts, targeting foreign aid, media outlets, and federal workers. Many of the cuts have directly impacted programs assisting Ukraine.

The Trump administration's Office of Management and Budget (OMB) on June 25 recommended canceling funds for nearly two dozen programs that investigate and seek accountability for war crimes, two U.S. sources familiar with the matter told Reuters. The outlet also reviewed internal government documents to support their claims.

The targeted programs include groups investigating Russian war crimes in Ukraine, as well as atrocities in Myanmar, Syria, Iraq, Nepal, Sri Lanka and the Gambia.

Multiple programs designated for termination are operating in Ukraine, three sources told Reuters. One of the groups is Global Rights Compliance, which gathers evidence of Russian war crimes across the country, including torture and sexual violence. Another is Legal Action Worldwide, a legal aid organization that supports efforts to prosecute suspects accused of perpetrating war crimes in Ukraine.

The State Department will have the opportunity to appeal the OMB's recommendation, though two U.S. officials told Reuters that Secretary of State Marco Rubio is not likely to advocate for most of the programs.

Rubio could potentially argue to preserve a few key programs, such as those supporting the prosecution of Russian war crimes in Ukraine, one source said.

According to an internal State Department email viewed by Reuters, the department has until July 11 to submit their arguments on behalf of preserving any of the targeted war crimes accountability programs.

The Trump administration's funding cuts have already impacted humanitarian aid and civil society programs across Ukraine as the country faces its fourth year of Russia's full-scale invasion. One of Trump's first acts in his second term was to freeze all U.S. foreign assistance for 90 days. He then worked alongside former ally Elon Musk to dismantle the U.S. Agency for International Development (USAID).

Among the defunded organizations is Ukraine Conflict Observatory, the leading U.S.-backed initiative documenting Russia's abduction of Ukrainian children. A part of Yale University's Humanitarian Research Lab, the group will end its efforts to track and monitor illegally deported Ukrainian children as of July 1 due to funding cuts.  

The White House also previously disbanded the U.S. Justice Department's War Crimes Accountability Team and fired a coordinator responsible for collecting data on Russian war crimes in Ukraine.

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