Sponsors (12)
The bill trades immediate federal spending reductions and a centralized oversight structure for USAID functions against large, immediate harms to foreign aid recipients, weakened U.S. diplomatic influence, and significant transition and operational costs.
Taxpayers: federal outlays for USAID programs would stop immediately, reducing near-term federal spending on foreign assistance.
State Department and federal oversight: USAID assets and liabilities would transfer to the Secretary of State, centralizing diplomatic foreign assistance oversight under State.
Foreign partners and vulnerable beneficiaries: U.S. development, humanitarian, and assistance programs would halt immediately, cutting aid worldwide and directly harming populations that rely on U.S. support while undermining long‑term U.S. influence and development diplomacy.
Taxpayers and contractors: terminating contracts and grants could create financial losses, legal liabilities, and transition costs borne by U.S. agencies, contractors, and ultimately taxpayers.
State Department operations and program delivery: a rapid transfer of USAID assets/liabilities could strain State's capacity, causing operational disruption and slowing or degrading delivery of remaining programs.
Based on analysis of 2 sections of legislative text.
Halts USAID operations by barring Federal funds for USAID functions, rescinds its unobligated balances, and transfers its assets/liabilities to the Secretary of State.
Introduced February 5, 2025 by W. Greg Steube · Last progress February 5, 2025
Immediately stops USAID from carrying out any of its statutory functions by prohibiting the use of Federal funds for those activities, rescinds all unobligated balances that had been made available to the USAID Administrator as of the day before enactment, and directs that any remaining USAID assets or liabilities be transferred to the Secretary of State. The measure effectively halts U.S. foreign assistance operations managed by USAID and shifts responsibility for any remaining assets or liabilities to the State Department.