The State Department on March 28 officially notified the US Congress that it is effectively dissolving the US Agency for International Development (USAID) and transferring some of its functions, CNN reports.
The reorganization will be carried out by July 1.
The closure of an agency created by Congress without the intervention of the legislative branch is expected to trigger legal challenges.
We recall that the administration of President Donald Trump accused USAID of mismanaging taxpayer money and funding overseas programs that are not in the interest of the US. Current and former USAID employees and humanitarian aid experts have argued that the agency, while imperfect, is responding to vital humanitarian needs.
In its first weeks in office, the Trump administration moved to close USAID and freeze nearly all foreign aid pending a review of those programs.
Thousands of USAID employees have been either fired or furloughed, and billions of dollars in aid contracts have been canceled. Fewer than 900 USAID employees remained on the job as of last week, according to another notice from the agency to Congress.
That led to lawsuits from humanitarian groups and USAID employees, some of whom described harrowing trips home from abroad for which they were not reimbursed.
USAID was a major initial target of Elon Musk's Department of Government Efficiency (DOGE), which is cutting thousands of jobs and programs across the federal government.
In a memo to remaining employees obtained by CNN, Jeremy Lewin, a senior USAID official, said the move would "significantly improve efficiency, accountability, consistency, and strategic impact in the delivery of foreign assistance programs - allowing our nation and the president to speak with one voice on foreign affairs.
Essentially all non-mandatory positions at USAID will be eliminated as part of restructuring.
"Over the next three months, we will work closely with the State Department to build their capacity to assume responsible stewardship of USAID's remaining life-saving and strategic assistance program," Lewin said.
USAID programs that have been authorized to continue by the State Department include "humanitarian assistance, global health functions, strategic investments, and limited national security programs," according to a USAID notification to Congress obtained by CNN.