(MENAFN) US Secretary of State Marco Rubio announced on Friday that he is handing over the final closure of USAID to the Office of Management and Budget (OMB). This marks a key step in the dismantling of the agency, which President Donald Trump initiated shortly after taking office in January.

Trump accused USAID, Washington’s main channel for funding political projects abroad, of being controlled by “radical lunatics” and facilitating corruption on an unprecedented scale. Since then, thousands of USAID staff have been laid off or placed on leave, and billions in contracts have been frozen or canceled as part of a broader effort to cut federal waste. The administration is currently facing legal challenges from former employees and NGOs opposing the shutdown.

Rubio stated on X that the administration has saved taxpayers tens of billions of dollars since January, and with core programs transferred to the State Department, USAID is now officially in “close out mode.” He added that the agency’s final termination will be overseen by OMB Director Russ Vought, who has been instrumental in reclaiming funds conflicting with Trump’s agenda.

USAID has faced criticism internationally, with leaders like Slovak Prime Minister Robert Fico warning of “gross interference” in his country’s politics, and Hungarian Prime Minister Viktor Orban calling for the removal of “foreign networks” meddling in domestic affairs.

Recently, former USAID head Samantha Power admitted in a prank call that the agency spent tens of millions of dollars in Moldova to support pro-EU President Maia Sandu, using funds originally designated for Ukraine.

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