U.S. Capital Building. Image by WASHINGTON — The U.S. State Department formally notified Congress on Friday that it is moving forward with dissolving the United States Agency for International Development (USAID).
The move is part of a broader cost-cutting initiative led by the Department of Government Efficiency (DOGE). The State Department will take over some of USAID’s functions.
According to Secretary of State Marco Rubio, USAID has strayed from its original mission, resulting in high expenditures with limited direct benefits to the United States—the reorganization is set to be completed by July 1.
Marco Rubio said that “eliminating wasteful spending is a priority, and USAID’s current structure no longer aligns with the United States’ strategic interests.”
The Trump administration accused USAID of wasting taxpayer money and funding overseas programs that don’t benefit the United States.
USAID was one of the initial targets of Elon Musk’s Department of Government Efficiency (DOGE), which is cutting thousands of jobs and programs across the federal government.
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The closure of USAID is expected to significantly impact El Salvador, where the agency has been a major player in funding development projects, humanitarian aid, and independent journalism.
El Faro, an independent online newspaper in El Salvador, reported on March 11 that freezing U.S. cooperation funds had already affected 11 Salvadoran media outlets, including El Gato Encerrado.
GatoEncerrado, for example, lost seven out of every ten dollars that the magazine had budgeted for 2025: some $300,000 in total. El Faro Online Newspaper.
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Experts in press freedom have stated that the loss of USAID funding raises concerns about press freedom and the sustainability of independent journalism in the region.
In El Faro’s report, Angélica Cárcamo, the former president of the Salvadoran Journalists Association (APES), remarked that “dependence on U.S. cooperation is a weak point of the Central American press.”
Critics of the Trump administration contend that tearing apart USAID will compromise American influence overseas and weaken relations with countries depending on American aid.
Nonetheless, Salvadoran organizations, including independent journalistic organizations, are preparing for the financial and operational uncertainty that lies ahead.
