Trump Administration to Place Most USAID Employees on Leave, Layoffs Ahead

Tue Jul 01 2025 21:39:34 GMT+0300 (Eastern European Summer Time)
Trump Administration to Place Most USAID Employees on Leave, Layoffs Ahead

In a controversial move, the Trump administration signals a significant reduction in the workforce at USAID.


The administration's decision comes following a federal ruling that allows the layoffs of up to 2,000 employees as part of a broader effort to cut costs.



The Trump administration has announced that the majority of USAID employees will be placed on administrative leave starting midnight Sunday, impacting around 8,000 staff members, as per a communication from the Office of the Administrator shared with CBS News. Alongside this, up to 2,000 employees face layoffs happening under a "reduction in force" initiative following a series of previous attempts by President Donald Trump to downsize the agency, which has garnered legal challenges.

Recently, a federal judge, Carl Nichols, cleared the path for the administration’s plans after lifting a temporary injunction that had paused the layoff efforts. The email to employees indicates that certain "designated personnel" performing essential functions or holding leadership positions will be exempt from this round of leaves and layoffs, although the exact number of exempt employees remains uncertain.

This announcement forms part of what critics perceive as a broader agenda to shrink the federal workforce in the name of cost reduction, fueled by Trump and his advisor, billionaire entrepreneur Elon Musk. Musk, an outspoken critic of U.S. funding for foreign aid, reportedly pushed employees within the federal bureaucracy to quantify their achievements recently, emphasizing a shift towards accountability in government roles.

During a conservative convention outside Washington, Trump reiterated his criticism of USAID, branding it as a "left-wing scam" and claiming that its operations have been effectively terminated, with discussions about relocating the agency's functions to accommodate Customs and Border Patrol.

Meanwhile, Musk has made stark claims about the agency, labeling it a "criminal organization" and alluding to a discussion with Trump about potentially dismantling it, though such assertions lack any substantiated evidence.

USAID, which employs approximately 10,000 staff members, sees two-thirds of its workforce stationed overseas, according to the Congressional Research Service. The administration further mentioned that it would cover voluntary return travel expenses for overseas employees affected by the recent administrative changes, highlighting the potential disruption in international humanitarian efforts as a result of these actions.

Significantly, experts caution this move could have detrimental impacts on global health initiatives and broader foreign aid given the breadth of assistance provided by USAID, a point underscored by the World Health Organization, stating fifty countries could be affected by this freeze on aid.

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