Elon Musk, who is leading U.S. President Donald Trump’s federal cost-cutting initiative, announced Monday that efforts are underway to shut down the United States Agency for International Development (USAID).
During a discussion on X, Musk said USAID is “beyond repair” and that Trump supports its closure. The conversation, which included former Republican presidential candidate Vivek Ramaswamy and Senators Joni Ernst and Mike Lee, highlighted broader efforts by the Department of Government Efficiency (DOGE) to streamline U.S. spending.
As news of the move spread, USAID instructed most of its staff to work remotely, with further guidance expected soon. The decision follows the removal of two top security officials over the weekend after they attempted to block DOGE representatives from accessing restricted areas of the agency’s headquarters.
USAID, the world’s largest single donor agency, disbursed $72 billion in 2023 for programs including women’s health, energy security, HIV/AIDS treatment, and anti-corruption efforts. In 2024, the agency provided 42% of all humanitarian aid tracked by the United Nations. With Trump’s global freeze on U.S. foreign aid, numerous programs, from Thai refugee camp hospitals to landmine clearance efforts, are now at risk.
Musk, who also leads Tesla (TSLA.O) and SpaceX, said the Trump administration aims to cut $1 trillion from the U.S. deficit next year. He claimed that “professional foreign fraud rings” are siphoning vast sums by creating fake digital U.S. identities, though he provided no evidence to support the claim.
Concerns have also emerged over Musk’s access to key government systems, including the U.S. Treasury’s payment system, which processes over $6 trillion annually. Senator Peter Welch criticized Musk’s involvement, calling it “a gross abuse of power” and demanding transparency on why he has access to sensitive taxpayer data.
Despite criticism, Trump defended Musk’s role, calling him a “big cost-cutter”, though he acknowledged that they may not always agree. Musk’s team has also taken control of the Office of Personnel Management (OPM), the agency responsible for federal workforce management, further cementing his influence over Trump’s push to reshape the U.S. government.
