USAID Nears Full Dismantling as Russ Vought Takes Helm, Billions in Savings Claimed

Secretary of State Marco Rubio announced Friday that the U.S. Agency for International Development (USAID) is officially in "close out mode," with Office of Management and Budget (OMB) Director Russ Vought now overseeing the final stages of the agency's dissolution. The move follows a period of significant restructuring and budget cuts, which Rubio claimed have saved taxpayers "tens of billions of dollars" since January. This development marks a critical step in the Trump administration's broader effort to reshape federal agencies and spending.

Rubio, who has held multiple acting roles within the administration, stated on social media, "I joked with @POTUS that I had four jobs. He told me to give one to my friend @RussVought47. So I did." He added, "Since January, we’ve saved the taxpayers tens of billions of dollars. And with a small set of core programs moved over to the State Department, USAID is officially in close out mode. Russ is now at the helm to oversee the closeout of an agency that long ago went off the rails. Congrats, Russ."

USAID, once a key independent agency for international aid, has been systematically dismantled under the current administration. Earlier this year, President Trump appointed Rubio as acting administrator, leading to an 83 percent reduction in programs, including vital food, water, and medical aid. The remaining functions were absorbed by the State Department on July 1, effectively ceasing USAID's independent operations.

Russ Vought, confirmed as OMB Director in February 2025, is a prominent architect of The Heritage Foundation's Project 2025, a blueprint advocating for a radical reshaping of the federal government. Known for his fiscal conservatism and desire to "put them [federal bureaucrats] in trauma," Vought's appointment signals the administration's commitment to aggressively reduce what it deems "woke" spending across federal agencies. He is also currently serving as acting director of the Consumer Financial Protection Bureau.

The claimed savings include efforts to claw back nearly $5 billion in foreign aid through "pocket rescissions," a budgetary tool that allows the president to let allocated funds expire without direct congressional action. This practice has drawn strong condemnation from congressional watchdogs and lawmakers, who argue it illegally undermines the legislative branch's "power of the purse" and erodes constitutional checks and balances. Senator Susan Collins (R-ME) stated, "Any effort to rescind appropriated funds without congressional approval is a clear violation of the law."

The controversial dismantling of USAID and the transfer of its final oversight to Vought underscore the administration's intent to implement its "America First" agenda, prioritizing domestic interests and significantly reducing foreign aid. Critics, however, warn that such cuts could have severe humanitarian consequences and weaken U.S. influence abroad.