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Trump Officials Push for USAID Overhaul: Renaming and Revamped Foreign Aid on the Table
Washington, March 20 (Reuters) - The Trump administration has put together a proposal to restructure how Washington allocates millions of dollars in international assistance, based on an internal document suggesting reduced financing for sectors deemed more consistent with America's global strategic objectives.
The proposal, reviewed by Reuters, emerges at this time an unprecedented push by President Donald Trump and billionaire Elon Musk To reduce the size of the federal government, which they argue squanders taxpayers' funds on initiatives that do not promote U.S. interests.
Trump requested a 90-day halt on all U.S. international assistance On his inaugural day, he took an action that led to subsequent stop-work orders suspending numerous projects under the U.S. Agency for International Development across the globe. This has endangered the distribution of critical food and medical assistance, plunging international humanitarian aid initiatives into disarray.
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More: The USAID intended to use 'soft power,' but unexpectedly found itself targeted by DOGE. Here’s what happened.
USAID itself has been largely dismantled , with much of its staff put on leave or let go and more than 80% of its grants terminated.
The memorandum contends that the present framework for U.S. foreign aid is overly extensive, excessively expensive, and has not succeeded in decreasing certain countries' reliance on American support. It suggests that funds ought to be distributed with a more targeted, strategic approach.
"This blueprint proposes a re-imagined U.S. international assistance structure and set of operating principles that promises measurable returns to America while also projecting American soft power, enhancing our national security; and countering global competitors including China," the memo said.
More: DOGE vs. Institute of Peace: Standoff leads to police intervention, board overhaul
The internal memo will be sent to U.S. Secretary of State Marco Rubio for review, a source familiar with the document said. The memo was first reported by Politico .
While it was not clear how much of the proposal would be adopted, it represents one of the most detailed examinations of how the Trump administration intends to transition USAID, an organization established in 1961 by Democratic President John F. Kennedy.
The proposal suggests eliminating almost two dozen USAID bureaus and proposes changing the organization’s name to the U.S. Agency for International Humanitarian Aid.
Limited mandate
The newly established "specialized" entity would be integrated into the State Department with its scope confined to providing humanitarian aid, responding to disasters, addressing global health issues, and ensuring food security.
More: The Supreme Court will not stop a judge's directive mandating that the Trump administration provide funds to international organizations.
The proposal suggests relocating all "politically-focused initiatives" like democracy advocacy, religious liberty enhancement, and gender equality advancement to the State Department for direct management.

"A State Department spokesperson stated that they are dedicated to achieving President Trump and Secretary Rubio’s foreign policy goals by striving to be as innovative, agile, and concentrated as feasible," when questioned regarding the memorandum.
On Tuesday, a federal judge blocked Musk and the government efficiency department From moving forward with closing USAID, arguing that their attempts to shut down the organization probably went against the U.S. Constitution.
More: Judge says USAID shutdown attempt 'probably' violates constitutional rights.
Initially, it wasn’t evident how the decision would impact USAID’s activities or if it would result in bringing back any employees. The organization’s recently appointed leadership team, several of whom took office earlier this week, outlined forthcoming actions for the upcoming months in an independent internal USAID memo distributed on Wednesday.
One of the key priorities, they said in the email seen by Reuters, would be to administer the around 1,000 ongoing life-saving humanitarian aid programs.
"We are committed to ensuring ongoing programs remain functional and can service beneficiaries in need," it said.
The other priorities are to ensure the "safety, dignity and productivity" of USAID personnel during the transition and to work with Congress and Rubio to formulate a vision for how USAID is handed over to the State Department.
The memo was signed by Kenneth Jackson, who was appointed this week as chief financial officer of USAID and Jeremy Lewin, who was named as chief operating officer and is performing the duties of deputy administrator for policy. Lewin was named as a DOGE staffer this month by the COO of the Consumer Financial Protection Bureau.
This article originally appeared on USA TODAY: Trump officials propose renaming USAID and revamping foreign aid
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