In a move that has sparked widespread debate, Pete Marocco, the acting deputy administrator of the U.S. Agency for International Development (USAID), has officially transferred control of the agency to Jeremy Lewin, an official from the Department of Government Efficiency (DOGE). The decision marks a significant shift in the administration of U.S. foreign aid programs, aligning with President Donald Trump’s broader effort to restructure and reduce the federal government.
Marocco, who was tasked with overseeing USAID’s downsizing and restructuring, informed colleagues of the transition in an internal email on Tuesday. USAID is now under control, accountable, and stable, he wrote, before announcing his return to his role as Director of the State Department’s Foreign Assistance Bureau. The Department of Government Efficiency, led by officials with a background in cost-cutting and federal restructuring, has been instrumental in reshaping multiple agencies under the Trump administration. Lewin, who will now oversee USAID, has been actively involved in DOGE’s cost-slashing initiatives, including those influenced by business magnate Elon Musk. His appointment follows months of financial audits and evaluations meant to reassess the agency’s priorities.
The transition also coincides with phase three of a 90-day review of all U.S. foreign aid programs, an initiative mandated by President Trump’s executive order on his first day in office. The order called for a comprehensive assessment of foreign aid spending, program efficiency, and overall alignment with U.S. national interests. In a statement to CBS News, Marocco described USAID’s internal challenges as being far worse than anticipated. He claimed his team identified tens of billions of dollars being funneled through 27 different payment systems, characterizing it as an industrial aid complex that no longer served national security or humanitarian interests. Following the review, approximately 1,000 programs were deemed essential, while the fate of others remains uncertain.
Marocco also announced the appointment of Ken Jackson as USAID’s Deputy Administrator for Management and Resources, a role that includes serving as the agency’s Chief Financial Officer (CFO). However, Jackson’s influence is not limited to USAID. DOGE announced via social media platform X that Jackson had also been appointed as acting president of the U.S. Institute of Peace (USIP), a federal organization known for its work in conflict resolution and diplomacy.
USIP, founded by Congress in 1984, has long been tasked with preventing conflicts and promoting peace deals. However, its role and funding have recently come under scrutiny as part of the Trump administration’s efforts to reduce federal expenditures and shift resources away from traditional diplomatic approaches. Tensions escalated last Friday when DOGE officials, accompanied by two FBI agents, arrived unannounced at USIP headquarters. According to the institute’s outside legal counsel, the agents were informed that USIP operates as a private, non-executive branch agency, prompting them to leave. However, they returned on Monday, at which point then-president George Moose publicly accused DOGE of breaking into the building.
The White House responded swiftly, with press aide Anna Kelly stating that Moose had already been removed from his position and that Jackson had taken control as acting president. Ken Jackson is now in place and is accessing the agency he now runs, Kelly wrote on X. The administration further asserted that USIP had failed to comply with an executive order signed by President Trump in February, which sought to reduce its operational authority to the statutory minimum.
USIP is the latest in a series of federal institutions facing restructuring under DOGE, but it is not the only one facing legal pushback. On Tuesday, the institute filed for a restraining order to block the Trump administration’s takeover. However, by Wednesday, a federal judge denied the request, allowing the administration to proceed with its actions. The broader federal overhaul by DOGE has also drawn increasing legal scrutiny. On the same day, a federal judge ruled that Elon Musk and DOGE had likely violated the U.S. Constitution when they unilaterally acted to shut down USAID operations. The ruling has only intensified the legal and political firestorm surrounding the administration’s aggressive push to downsize and streamline federal agencies.
The Trump administration’s efforts to reduce the size and scope of U.S. foreign aid programs have been praised by conservatives and criticized by human rights and diplomatic groups alike. Supporters argue that USAID and other agencies have long been plagued by bureaucratic inefficiencies, redundant programs, and unnecessary spending. The federal government has wasted billions on programs that lack oversight and accountability, said a Republican congressional aide who supports the administration’s approach. This restructuring is necessary to ensure that taxpayer dollars are being spent effectively and in line with national interests. However, critics warn that dismantling USAID and restricting USIP’s influence could significantly undermine U.S. diplomatic efforts and humanitarian initiatives worldwide.
Slashing USAID’s budget and sidelining the U.S. Institute of Peace in favor of cost-cutting measures is reckless, said a former senior USAID official. These changes not only weaken America’s role in global development but also diminish its diplomatic credibility. With ongoing legal battles, public outcry, and an uncertain path forward, the situation remains fluid. The Trump administration appears determined to push forward with its federal restructuring agenda, while critics prepare for an escalating legal and political fight.
With Marocco stepping aside, Lewin taking charge at USAID, and Jackson overseeing both USAID and USIP, the next phase of the administration’s government efficiency initiative is expected to move swiftly. However, with legal challenges mounting, the outcome of this sweeping federal restructuring effort remains uncertain. The fight over USAID, USIP, and DOGE’s expanding influence is shaping up to be a pivotal moment in the Trump administration’s push to redefine U.S. government operations, with implications that could reverberate well beyond 2026.