USAID to shut down by September under Musk directive

The United States Agency for International Development (USAID), a cornerstone of American humanitarian outreach for over six decades, is being dismantled under the directive of Elon Musk’s Department of Government Efficiency.

Former senior officials and sources familiar with the situation confirmed the agency’s closure will be finalised by September.

A conference call held on Monday between USAID’s human resources office and regional bureaus revealed that more than 10,000 locally hired staff in over 60 countries will be terminated by August. Additionally, hundreds of U.S. diplomats and civil servants assigned to the agency abroad are also receiving layoff notices.

A summary of the call reviewed by Reuters stated: “Every position eliminated; 100 percent of the agency is rif’d (Reduction in Force) or will be.” All overseas operations are to be shut down, and some of USAID’s functions will be absorbed by the State Department.

President Donald Trump, along with Musk—his appointed advisor for streamlining government operations—began the dismantlement in February. The move is part of an effort to align foreign assistance with Trump's “America First” agenda. The State Department has not responded to requests for comment.

So far, over 5,000 aid programmes have been terminated. Hundreds of contractors were fired, and thousands of USAID staff placed on administrative leave. Musk has accused the agency of being a “criminal” operation, while Trump has labelled it as corrupt and ideologically compromised—both claims made without evidence.

The cuts impact major humanitarian efforts in countries like Ukraine, Jordan, and the Democratic Republic of Congo. Aid to the West Bank and Gaza—already stretched by war—has also been disrupted. The Congressional Research Service notes USAID channels most of its funds to health, education, and emergency response initiatives.

Critics warn that sudden termination of local staff could breach labour laws in host countries and destabilise already fragile regions. As of now, 600 U.S. diplomats assigned to USAID overseas are set to be dismissed by July, when the agency plans to close “all programmatic work.”

Once regarded as the world’s largest bilateral aid organisation, USAID is being erased—quietly, rapidly, and without public debate. The consequences may echo well beyond the agency’s final days.

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