Elon Musk, the billionaire CEO of Tesla and SpaceX, is spearheading President Donald Trump’s initiative to reduce the size of the federal government.
In a recent social media discussion on X (formerly Twitter), Musk revealed that efforts are underway to shut down the United States Agency for International Development (USAID), citing inefficiency and mismanagement.
Musk, who heads the Department of Government Efficiency (DOGE), a federal cost-cutting panel appointed by Trump, discussed the plan during a live chat with former Republican presidential candidate Vivek Ramaswamy and Republican Senators Joni Ernst and Mike Lee. He described USAID as “beyond repair” and confirmed that Trump supports its closure.
Elon Musk, heading President Trump's cost-cutting panel, asserts that USAID is ‘beyond repair’ and is working towards its shutdown. Meanwhile, USAID staff have been advised to work remotely amid this development https://t.co/CQOy76mehl pic.twitter.com/65RoDL4xW0
— Reuters (@Reuters) February 3, 2025According to an internal email reviewed by Reuters, most USAID staff were instructed to work remotely on Monday, with further guidance pending. The agency’s website was also reportedly offline over the weekend, raising questions about its operational status.
Over the weekend, two top security officials at USAID were removed after attempting to block DOGE representatives from accessing restricted areas of the agency’s headquarters. Trump criticized USAID, calling it “run by a bunch of radical lunatics” and vowing to “get them out.”
Impact of USAID’s Potential Closure
USAID, the world’s largest single donor, disbursed $72 billion in global assistance in fiscal year 2023. Its programs include initiatives for women’s health, clean water access, HIV/AIDS treatment, energy security, and anti-corruption efforts. The agency provided 42% of all humanitarian aid tracked by the United Nations in 2024.
NEW: Employees of the U.S. Agency for International Development (USAID) based out of D.C. were ordered overnight not to come into the office Monday and to work from home; comes after Elon Musk said that he and President Trump are shutting down the agency. https://t.co/fV0GHwMS0T
— NBC News (@NBCNews) February 3, 2025If USAID is shut down, critical programs such as field hospitals in Thai refugee camps, landmine clearance in war zones, and life-saving drug distribution could face elimination.
The move aligns with Trump’s “America First” policy, which includes a global freeze on most U.S. foreign aid. This policy has already caused significant concern among international partners and humanitarian organizations.
Musk’s Broader Cost-Cutting Goals
During the discussion, Musk claimed that the Trump administration could cut $1 trillion from the U.S. deficit next year by addressing inefficiencies and fraud. He alleged that “professional foreign fraud rings” exploit U.S. systems, though he provided no evidence to support this claim.
Musk’s team has access to several government systems, including the Treasury payment system, which handles over $6 trillion annually and contains sensitive data for millions of Americans. This has raised concerns among lawmakers, including Senator Peter Welch, who called it a “gross abuse of power.”
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Musk’s aides have also taken control of the Office of Personnel Management (OPM), locking career civil servants out of systems containing personal data for millions of federal employees.
Despite concerns, Trump praised Musk’s efforts, calling him a “big cost-cutter” and stating, “Sometimes we won’t agree with it, and we’ll not go where he wants to go. But I think he’s doing a great job.”
