USAID officially stops providing foreign aid as of July 1, all programs to be administered by State Department – Rubio
U.S. Secretary of State Marco Rubio announced the cessation of all foreign aid by the United States Agency for International Development (USAID) as of July 1 and that all U.S. foreign aid programs will now be accountable to U.S. taxpayers.
"As of July 1st, USAID will officially cease to implement foreign assistance. Foreign assistance programs that align with administration policies – and which advance American interests – will be administered by the State Department, where they will be delivered with more accountability, strategy, and efficiency," Rubio said in a statement published on the State Department website.
USAID, he said, has had "decades and a near-infinite taxpayer budget" to expand American influence, promote economic development around the world, and put billions of people on their feet, but "beyond creating a globe-spanning NGO industrial complex at taxpayer expense, USAID has little to show since the end of the Cold War." "Development objectives have rarely been met, instability has often worsened, and anti-American sentiment has only grown. On the global stage, the countries that benefit the most from our generosity usually fail to reciprocate," Rubio said, noting, in particular, that African and Middle Eastern countries that have received large amounts of aid have rarely supported the United States in votes on resolutions at the United Nations.
"The only ones living well were the executives of the countless NGOs, who often enjoyed five-star lifestyles funded by American taxpayers, while those they purported to help fell further behind. This era of government-sanctioned inefficiency has officially come to an end," the secretary of state said.
Rubio also noted the failure of the charity-based model, which has created dependency among developing country leaders. "Americans should not pay taxes to fund failed governments in faraway lands… We will favor those nations that have demonstrated both the ability and willingness to help themselves and will target our resources to areas where they can have a multiplier effect and catalyze durable private sector, including American companies, and global investment. This work is well underway. We are already seeing tremendous progress in making the UN, other allies, and private funds pay a greater share of projects around the world," he said.
The Secretary of State announced the consolidation of fragmented appropriations accounts, the elimination of bureaucratic processes to respond more quickly to crises, and the introduction of new performance criteria. "By empowering diplomats on the ground through regional bureaus, we are creating a fast feedback loop to ensure programs align with American interests and the needs of partner nations. This model will also place us in a stronger position to counter China's exploitative aid model and further our strategic interests in key regions around the world. We will do so by prioritizing trade over aid, opportunity over dependency, and investment over assistance. For Americans and many around the world, July 1st will mark the beginning of a new era of global partnership, peace, investment, and prosperity," Rubio said.