PolicyBrief
H.R. 1123
119th CongressFeb 7th 2025
To abolish the United States Agency for International Development, and for other purposes.
IN COMMITTEE

This bill abolishes the United States Agency for International Development (USAID), redirecting its assets and responsibilities to the Secretary of State.

Marjorie Greene
R

Marjorie Greene

Representative

GA-14

LEGISLATION

Federal Bill Seeks to Shut Down USAID, Transferring All Assets to Secretary of State

Alright, here's the deal: a new bill just dropped, and it's proposing to completely abolish the United States Agency for International Development (USAID) – the folks who handle a huge chunk of U.S. foreign aid and development projects around the world. Effective immediately upon enactment, this legislation would cut off all federal funding to USAID, essentially shutting it down. It also claws back any money USAID hasn't spent yet and dumps all of its remaining assets and liabilities on the Secretary of State's desk.

From Aid to State: What Changes?

This bill isn't about tweaking a few programs; it's a full-stop on USAID's operations. Think of it like this: imagine you're running a small business, and suddenly your entire operating budget vanishes, and all of the financial responsibilities are transferred to another already busy department. All funds, both incoming and unspent, are redirected. Any ongoing projects, contracts, or commitments USAID had? Those are now the State Department's problem. The bill, in Section 1, specifically states that no federal funds can be given to USAID, and any unspent balances are rescinded. This could impact everything from global health initiatives to disaster relief efforts that USAID currently manages.

Real-World Ripple Effects

Let's say you're a contractor working on a USAID-funded project to improve water sanitation in a developing country. If this bill passes, your funding could dry up overnight. Or, picture a non-profit organization that relies on USAID grants to provide educational resources in conflict zones. That support could vanish, leaving vulnerable populations in the lurch. The bill essentially transfers all of USAID's responsibilities – and its headaches – to the Secretary of State. Whether that office has the bandwidth or expertise to effectively manage these programs is a big, unanswered question. It's like asking your accountant to suddenly take over all marketing and sales. It could be done, but it’s a big shift with potentially major consequences.

The Bigger Picture: Centralization and Challenges

This move essentially consolidates a significant amount of power and responsibility within the State Department. While proponents might argue this streamlines operations, it also raises concerns about potential politicization of aid. It also begs the question of how efficiently the State Department can absorb these new duties, and whether this is a step toward a more centralized, less specialized approach to international development. It's a major shake-up with potentially far-reaching, and almost certainly disruptive, consequences for how the U.S. engages with the world.