The administration of US President Donald Trump has announced a significant downsizing of the United States Agency for International Development (USAID), with 1,600 positions set to be eliminated across the country as part of a broader effort to scale back foreign assistance programmes.

According to an official statement issued on Sunday, all USAID personnel in the US—except senior leadership and critical staff—will be placed on paid administrative leave.

The move follows an earlier decision by the administration to halt foreign aid spending, which had already disrupted key global humanitarian efforts.

A notice sent to affected employees, reviewed by Reuters, stated: "I regret to inform you that you are affected by a Reduction in Force action." The email further confirmed that those impacted would be officially removed from federal service by April 24.

The downsizing is being spearheaded by the Department of Government Efficiency, led by billionaire entrepreneur Elon Musk, which has pushed for restructuring the agency.

USAID, long considered a cornerstone of American "soft power," plays a crucial role in providing disaster relief, global health initiatives, and development assistance worldwide.

Two former senior USAID officials estimated that the move would impact a majority of the agency’s 4,600 personnel, including career civil servants and foreign service officers.

"This administration and Secretary (of State Marco) Rubio are shortsighted in cutting into the expertise and unique crisis response capacity of the US," said Marcia Wong, a former senior USAID official. "When disease outbreaks occur or populations are displaced, these USAID experts are the first to respond."

The White House has not commented on the decision, but a federal judge on Friday ruled in favour of the administration, allowing it to proceed with placing thousands of USAID workers on leave. The ruling was seen as a blow to government employee unions, which had been challenging the move in court.

The Trump administration has maintained that the restructuring is necessary as part of a broader review of US foreign assistance. Shortly after assuming office on January 20, President Trump ordered a 90-day freeze on aid programmes, suspending funding for initiatives ranging from famine relief to shelters for displaced persons.

While exceptions have been granted for security and counter-narcotics operations—amounting to $5.3 billion—USAID programs have received exemptions worth less than $100 million, a fraction of the nearly $40 billion the agency previously managed annually.