12 SEPTEMBER-OCTOBER 2025 | THE FOREIGN SERVICE JOURNAL TALKING POINTS OIG Flags Gaps as State Formally Absorbs USAID The State Department officially took over USAID’s remaining foreign assistance programs on July 1. Secretary of State Marco Rubio announced that aid will now be delivered “with more accountability, strategy, and efficiency.” In recorded farewell messages shared privately with USAID staff, former Presidents George W. Bush and Barack Obama condemned the move, with Obama calling the dismantling of USAID a “colossal mistake.” Humanitarian groups are already reporting major disruptions; the International Rescue Committee alone lost 40 percent of its funding and was forced to shutter critical programs in conflict zones. A May 2025 Inspector General report warned the transition was only “partially” aligned with Government Accountability Office (GAO) best practices. Though Congress was notified on March 28, State had just 96 days to complete the first phase. The working group guiding the shift is set to dissolve simultaneously, with no long-term leadership structure in place. Meanwhile, 898 active USAID awards worth $78 billion, including $8.3 billion still unobligated, are transferring to State. Despite newly authorized staffing levels—308 direct hires, 370 local employees, and 40 personal services contractors—the department lacks a strategic workforce plan or a full implementation road map, according to the report. OIG’s three recommendations— to establish lasting leadership, finish the road map, and design a workforce strategy—remain unresolved in practice. Critics cite a new Lancet study projecting more than 14 million additional deaths by 2030 due to USAID cuts, including millions of children under the age of 5. In describing this new approach, Secretary of State Marco Rubio said the U.S. is “prioritizing trade over aid, opportunity over dependency, and investment over assistance.” Online Passport Renewal Triumph Thanks to the State Department’s firstever online passport renewal system, Americans can now submit applications, upload photos, and pay fees without leaving home. Since its public launch in September 2024, the system has processed more than 2 million renewals and dramatically reduced wait times, earning a 97 percent approval rating in agency surveys. Led by Luis Coronado Jr., chief information officer at the Bureau of Consular Affairs, and Matthew Pierce, managing director for passport services, the effort transformed a decadesold process that hadn’t changed since the 1970s. (See story below for more on Coronado and Pierce.) Inspired by everyday consumer tech, the team overcame outdated systems and institutional skepticism to deliver this leap forward in federal customer service. Officials say the success of the passport system is opening doors for more digital upgrades, possibly including visas and other citizen services. 2025 Sammies: Excellence in Public Service The 2025 Samuel J. Heyman Service to America Medals, known as the Sammies, honor extraordinary federal employees whose work delivers meaningful results for the nation. Several foreign affairs professionals were among this year’s winners. Kathleen Kirsch of USAID was honored for her role in helping Ukraine withstand devastating Russian attacks on its energy infrastructure. She coordinated the rapid delivery of critical supplies to keep power and heat flowing to millions through the harsh winter months. From the State Department, Luis Coronado Jr. and Matthew Pierce earned recognition for launching the first-ever online passport renewal system. Their modernization effort reduced wait times by replacing a decades-old, paper-based process. As of May 2025, more than 2 million Americans had used the new system. The Chinese are laughing every day at the moves of this administration. I speak to them, and they just can’t believe the self-destruction on the economic and diplomatic front. … The president’s budget has us spending $100 billion a year just on nuclear weapons—my favorite topic—more than twice as much as what we spend on diplomacy that is meant to prevent war and conflict around the world. —Tom Countryman, retired FSO and former assistant secretary of State for international security and nonproliferation, on NPR, July 11. Contemporary Quote Talking Points offers a snapshot of recent developments affecting the Foreign Service. The following items were finalized for publication on July 21, 2025.
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