Musk says shutting down USAID in government cost-cutting drive
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Elon Musk, leading US President Trump's initiative to reduce the federal government, is working to dismantle USAID, freeze most foreign aid, and cut government expenses.
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Elon Musk speaks at an indoor Presidential Inauguration parade event in Washington, on January 20, 2025. (AP)
Billionaire Elon Musk, who is leading US President Donald Trump's initiative to reduce the size of the federal government, provided an update on the effort Monday, stating that they are working to dismantle the US foreign aid agency, USAID.
Musk, CEO of Tesla and SpaceX, discussed the Department of Government Efficiency (DOGE) during a social media talk on X, the platform he owns. Trump has tasked him with heading a federal cost-cutting panel.
During the discussion, which featured former Republican presidential candidate Vivek Ramaswamy and Republican Senators Joni Ernst and Mike Lee, Musk reiterated that shutting down USAID is a primary focus of the initiative.
Musk said, "It's beyond repair," adding that President Trump agrees it should be shut down.
On Sunday, Reuters reported that the Trump administration removed two top security officials at USAID during the weekend after they tried to stop representatives from billionaire Musk's Department of Government Efficiency (DODGE) from gaining access to restricted parts of the building, three sources said.
USAID is the largest single donor globally, with the US distributing $72 billion in aid during fiscal year 2023.
In 2024, USAID accounted for 42% of all humanitarian aid tracked by the United Nations.
USAID's website was offline over the weekend, and some users couldn’t access it. The agency employs over 10,000 staff members.
Trump's 'America First' policy
As part of his "America First" policy, Trump has ordered a global freeze on most US foreign aid, putting programs like field hospitals in Thai refugee camps, landmine clearance, and HIV treatments at risk. Musk, speaking on reducing US expenses and fighting fraud, estimated the Trump administration could cut $1 trillion from the deficit next year, citing "professional foreign fraud rings," but offered no evidence for his claims.
The Treasury system manages over $6 trillion in annual payments for federal agencies and stores the personal data of millions of Americans who receive Social Security, tax refunds, and other government benefits.
A member of the Senate Finance Committee, Democrat Peter Welch, demanded an explanation as to why Musk was granted access to the payment system, which, according to Welch, includes sensitive taxpayer data.
"It's a gross abuse of power by an unelected bureaucrat and it shows money can buy power in the Trump White House," Welch said in an emailed statement.
Trump supports Musk's efforts, praising him as a smart cost-cutter. That said, Musk's team has gained control of various government systems, including the Office of Personnel Management (OPM), where they’ve locked career civil servants out of critical systems containing personal data.
Musk has quickly installed allies at OPM since Trump's inauguration, as part of a broader push to downsize the bureaucracy and replace civil servants with loyalists.
