State Takes Over Foreign Assistance Amid Data Gaps and Guidance Shortfall

The GAO report confirms that the Department of State became the primary provider of U.S. foreign assistance after the State Department announced that USAID ceased administering foreign assistance awards as of July 1, 2025. The review covered nine agencies from January 2025 through May 2026.

USAID terminated approximately 6,780 of 7,510 foreign assistance awards between January 2025 and March 2026, representing cumulative obligations of $79.1 billion from the awards' inception through March 2026. The remaining active awards, now managed by State, represented about $52.1 billion as of March 2026.

All nine agencies decreased staff, including both headquarters and overseas personnel, during the same period. USAID's worldwide workforce fell from about 13,600 staff in January 2025 to 241 staff in April 2026. State was unable to produce data on its staffing levels for the eleven months the GAO requested, limiting its ability to plan operational requirements and address oversight needs.

State also lacks documented guidance to ensure that foreign assistance decisions are consistent and effective. Without agencywide standards, officials may make ad hoc or inefficient decisions that could waste taxpayer money or lead to legal disputes.

GAO issued three open recommendations to State: (1) direct the Chief Acquisition Officer and relevant bureaus to keep the MyGrants database accurate and up to date; (2) direct the Chief Human Capital Officer and Comptroller to generate comprehensive workforce composition data; and (3) ensure the Office of Policy Planning develops, documents, and communicates agencywide guidance aligning foreign assistance decisions with foreign policy priorities. State agreed with the recommendations and indicated it can generate workforce data and will consider the guidance recommendation in future planning cycles.