Official says USAID contracts canceled and work is being folded into U.S. State Department

Speaker 1, a staff member, said multiple contracts at the U.S. Agency for International Development were canceled and that some work is being folded under the U.S. Department of State. “Yes. We canceled a bunch of contracts in USAID. Some were stupid and outrageous. Others didn't serve the national interest, and others we kept. And we are folding it under the Department of State,” the staff member said.

The staff member said the change is intended to integrate foreign assistance into diplomatic strategy rather than treat it as separate humanitarian charity. “And you know why? Because we want it to be part of the toolbox of foreign policy, not a stand alone. It is not charity. Foreign aid is not charity. It is designed to further the national interest of The United States,” the staff member said.

The comments in the transcript indicate contract cancellations already occurred and that functions are being shifted to the State Department, but the speaker did not specify which contracts, how many, the timeline for the reorganization, or whether additional approvals are required. The transcript also does not identify the speaker by name or provide any written orders or legal citations accompanying the actions.

The remarks frame foreign assistance explicitly as an element of U.S. foreign policy. Beyond the quoted rationale, the transcript contains no additional details about budget changes, congressional notification, or implementation steps.

Requests for further documentation, such as lists of canceled contracts, formal reorganization orders, or implementation timelines, were not part of the provided transcript.