The State Department is officially taking over the remaining operations of the U.S. Agency for International Development (USAID), effectively ending its role as an independent agency, according to an internal memo obtained by Fox News Digital.

USAID has historically operated separately, providing foreign aid and development assistance. However, President Donald Trump appointed Secretary of State Marco Rubio as acting administrator in February, citing concerns that the agency was not serving U.S. interests.

Now, the State Department is finalizing a full takeover of USAID’s programs, with plans to streamline foreign assistance efforts, according to the memo. The move will also result in significant job cuts, affecting thousands of USAID employees.

“By bringing USAID’s core life-saving and strategic aid programs under the umbrella of the State Department, this Administration will significantly enhance the efficiency, accountability, uniformity, and strategic impact of foreign assistance programs — and ensure that our nation and President speaks with one voice in foreign affairs,” said Jeremy Lewin, who is handling USAID’s policy and programming, in a statement to Fox News Digital on Friday.

With this change, USAID will no longer function as an independent agency. More than 4,650 USAID employees will lose their jobs as part of the transition, a senior State Department official said. Layoff notices will begin going out on Friday, with employees set to leave either on July 1 or September 2.

During this transition period, the State Department will oversee USAID’s remaining programs and evaluate staffing needs before launching an independent hiring process. Some USAID employees may apply for new roles at the State Department, while others will assist in shutting down or transferring programs.

“A separate process will be established for hiring personnel into available roles at the State Department,” the USAID memo said. “While the details are still being finalized, we are committed to sharing additional information as soon as it becomes available, likely in April or May.”

The decision is part of a broader effort by the Trump administration to cut government spending. The Department of Government Efficiency (DOGE), led by SpaceX and Tesla CEO Elon Musk, has played a major role in identifying programs for elimination.

USAID has been criticized for funding initiatives that the administration sees as wasteful, including a $1.5 million program promoting “diversity, equity, and inclusion” in Serbia’s workplaces and a $70,000 grant for a “DEI musical” in Ireland.

Rubio announced on March 11 that the State Department had completed a six-week review and decided to eliminate over 80% of USAID’s programs—roughly 5,200 out of 6,200.

“Foreign assistance done right can advance our national interests, protect our borders, and strengthen our partnerships with key allies,” Rubio said in a statement to Fox News Digital on Friday. “Unfortunately, USAID strayed from its original mission long ago. As a result, the gains were too few and the costs were too high.”

“We are reorienting our foreign assistance programs to align directly with what is best for the United States and our citizens,” Rubio continued. “We are continuing essential lifesaving programs and making strategic investments that strengthen our partners and our own country.”