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State Department to Administer U.S. Foreign Assistance as USAIDprogram role ends

U.S. Department of State press briefing · July 2, 2025
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Summary

Tammy Bruce, State Department spokesperson, announced that the Department of State will assume administration of U.S. foreign assistance programs previously implemented by USAID, saying the change is intended to improve accountability and efficiency.

Tammy Bruce, State Department spokesperson, announced that the Department of State will assume direct administration of U.S. foreign assistance programs previously run by the U.S. Agency for International Development (USAID). Bruce said the change "puts US taxpayers and American priorities first" and said the reorganization is intended to improve "accountability, strategy, and efficiency."

Bruce said the shift follows what she described as a multi-step review and audit of existing aid mechanisms and asserted that some programs were "not in line" with the administration's priorities. She referenced public comments by former USAID and other officials about program delivery rates and said the new structure will place foreign assistance with the regional bureaus inside the State Department so "people who are assigned to those regions... are the experts" overseeing assistance.

A reporter asked whether the reorganization ends foreign aid; Bruce answered, "We are not ending foreign aid. We are making it more nimble. We are operating at the speed of relevancy." She also said some aid has been suspended or cut and that others will remain in place, but she declined to provide a comprehensive, line-by-line list during the briefing.

Reporters pressed for cost details tied to the transitionincluding the expense of returning USAID personnel from field posts and settling contracts. Bruce said the administration will report savings and that some transition costs exist but did not provide a public breakdown at the briefing.

Bruce cited auditing and accountability as central rationales and said the department will be able to show where funds are going and "see results." She read numbers and assertions from past officials about program delivery rates but did not provide new audit documents at the podium.

The briefing included follow-up questions about how regional bureaus will manage grants and contracts previously handled by USAID; Bruce said those functions will be integrated into the bureaus but did not provide detailed implementation steps, timelines, or statutory citations during the session.