In the latest shake-up at the State Department, one of Donald Trump’s most aggressive foreign aid reformers, Pete Marocco, is reportedly out of the picture—following a tense back-and-forth with Secretary of State Marco Rubio over how U.S. foreign assistance should be handled.
A Sudden Exit from a Controversial Role
Pete Marocco, who had returned to the State Department just weeks ago to oversee foreign aid as Director of Foreign Assistance, has now allegedly been let go.
His departure comes after a short but explosive stint where he pushed through massive cuts to U.S. foreign aid programs.
According to insiders, this wasn’t exactly a mutual decision. A government official claimed Marocco learned only last week that he was being removed.
Details are still murky, and the State Department hasn’t offered a clear explanation.
Clashing Visions on Foreign Aid Strategy
Marocco’s approach clashed hard with Secretary Marco Rubio’s.
While Marocco leaned into sweeping cuts—scrapping nearly all aid programs as part of Trump’s larger effort to slash international spending—Rubio reportedly pushed back, especially on eliminating programs tied to health, humanitarian support, and democracy building.
According to The Wall Street Journal, the pair locked horns during a 90-day audit of aid programs.
Marocco favored gutting most of them, while Rubio argued to protect life-saving operations that aligned with longstanding U.S. policy.
An Architect of Foreign Aid Cuts
Before this fallout, Marocco had already made headlines as the man behind the dismantling of the U.S. Agency for International Development (USAID).
Under the Trump administration’s directive, he oversaw the elimination of roughly 90% of USAID’s foreign contracts.
In a previous message shared with Reuters, Marocco said he planned to “bring value back to the American people” through his role, suggesting he was fully aligned with Trump’s cost-cutting agenda abroad.
A Power Grab at the Inter-American Foundation
Marocco was also at the center of controversy surrounding the Inter-American Foundation (IAF)—a government agency that supports development projects in Latin America and the Caribbean.
After being appointed the agency’s only employee by the Department of Government Efficiency (DOGE), he not only assumed the role of sole board member, but later declared himself president and CEO.
He then canceled every grant the agency was funding—except for one.
The agency had previously employed 48 people, with a reported budget of $60 million and an average salary of $131,000.
By the time Marocco was done, IAF was essentially gutted.
Legal Blowback and a Judge’s Rebuke
Things didn’t end quietly. A federal judge recently ruled that neither Donald Trump nor Pete Marocco had the legal authority to remove IAF president Sara Aviel from her position.
Aviel has since filed a lawsuit, arguing her firing—and that of her team—was unlawful.
U.S. District Judge Loren AliKhan sided with her, stating Marocco’s actions at the IAF had “no legitimate legal effect.”
The court also blocked any future attempts by the Trump administration to reinstate Marocco to the IAF board unless the Senate formally confirms him.
Congress Pushes Back Against Executive Overreach
Several Democrats in Congress have criticized Trump’s actions as a blatant overstep of presidential power.
Senators Joaquin Castro, Cory Booker, Tim Kaine, and Debbie Wasserman Schultz sent a letter to the White House insisting that only Congress can dissolve an agency like the IAF—not the president.
They emphasized that any attempt to dismantle the foundation through executive orders was unconstitutional and a violation of federal law.