Billionaire entrepreneur Elon Musk, who leads President Donald Trump's federal cost-cutting initiative, announced plans to shut down the U.S. Agency for International Development (USAID) as part of a broader effort to shrink the government.
Speaking on a social media talk on X early Monday, Musk described USAID as "beyond repair" and confirmed that President Trump supports the decision. Musk, who also heads Tesla and SpaceX, was joined in the discussion by former Republican presidential candidate Vivek Ramaswamy and Senators Joni Ernst and Mike Lee.
The move comes as part of the Department of Government Efficiency (DOGE), the panel Musk leads to identify federal budget cuts. USAID, the world’s largest single donor, disbursed $72 billion in global assistance in fiscal year 2023, supporting programs ranging from women’s health and clean water to HIV/AIDS treatment and anti-corruption efforts.
Musk claimed the administration could cut $1 trillion from the U.S. deficit next year, citing alleged fraud in foreign aid, though he provided no evidence to support his claims.
The announcement follows reports that the Trump administration removed two top security officials at USAID over the weekend after they resisted DOGE representatives' attempts to access restricted areas within the agency.
USAID’s website remains offline, and concerns are mounting over the fate of critical humanitarian programs. Trump's "America First" policy, which includes a global freeze on most U.S. foreign aid, has raised alarms internationally, with refugee aid, landmine clearance, and HIV treatments at risk of elimination.
Musk’s expanding influence over government systems, including reported access to the U.S. Treasury’s payment infrastructure, has sparked criticism from lawmakers. Senator Peter Welch (D-VT), a member of the Senate Finance Committee, condemned Musk's access as a "gross abuse of power" and called for greater transparency.
Despite the backlash, Trump continues to back Musk's leadership. "He's a big cost-cutter," Trump said on Sunday. "Sometimes we won't agree with it... but I think he's doing a great job. He's a smart guy. Very smart."
Musk’s team has also reportedly taken control of the Office of Personnel Management (OPM), locking career civil servants out of systems containing sensitive data on millions of federal employees.
Since returning to office 11 days ago, Trump has initiated a sweeping overhaul of the federal government, dismissing hundreds of civil servants and installing loyalists across key agencies.
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Start your day informed with the AnewZ Daily Brief. Here are the top stories for the 10th of September, covering the latest developments about AI and technology.
U.S. President Donald Trump has pledged to send every American adult a $5,000 payment if the Republicans keep control of the House of Representatives and the Senate in November's midterm elections.
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