Washington: Billionaire entrepreneur Elon Musk, leading U.S. President Donald Trump’s initiative to downsize the federal government, provided an update on Monday regarding efforts to dismantle the United States Agency for International Development (USAID).
Musk, who also serves as CEO of Tesla and SpaceX, discussed the progress of the Department of Government Efficiency (DOGE) during a conversation on X, the social media platform he owns. As part of his broader cost-cutting mandate, Trump appointed Musk to lead a federal review aimed at eliminating inefficiencies within government agencies.
In a discussion featuring former Republican presidential candidate Vivek Ramaswamy and Republican Senators Joni Ernst and Mike Lee, Musk confirmed that work was underway to shut down USAID.
“It’s beyond repair,” Musk stated, emphasizing that President Trump supports the decision to dismantle the agency.
USAID Staff Told to Work Remotely
Following these remarks, most USAID employees were instructed not to report to the agency’s Washington headquarters on Monday and were advised to work remotely. According to an internal email reviewed by Reuters, staffers were informed that “further guidance will be forthcoming.”
On Sunday, Reuters reported that two senior security officials at USAID were removed from their positions over the weekend after attempting to block DOGE representatives from accessing restricted areas of the agency’s offices, according to three sources familiar with the matter.
Later that day, Trump told reporters that USAID had “been run by a bunch of radical lunatics,” adding, “We’re getting them out, and then we’ll make a decision.”
USAID’s Global Impact and Funding Freeze
The U.S. remains the largest single donor of foreign aid worldwide. In the 2023 fiscal year, the country disbursed $72 billion across various initiatives, including women’s health in conflict zones, clean water access, HIV/AIDS treatments, energy security, and anti-corruption programs. In 2024, the U.S. accounted for 42% of all humanitarian aid tracked by the United Nations.
However, Trump has implemented a global freeze on most U.S. foreign aid as part of his “America First” policy, leading to widespread concerns about its impact. Programs at risk of elimination include field hospitals in Thai refugee camps, landmine clearance in war zones, and life-saving treatments for diseases such as HIV.
USAID’s website appeared to be offline on Saturday, and some users reported accessibility issues on Sunday. The agency employs over 10,000 people worldwide.
Musk’s Broader Cost-Cutting Agenda
Musk, addressing broader government spending reductions, estimated that the Trump administration could cut $1 trillion from the U.S. deficit in the next fiscal year.
He also claimed that “professional foreign fraud rings” were siphoning off substantial sums by posing as fake digital U.S. citizens. However, Musk did not provide any evidence to substantiate these claims or explain how he arrived at the $1 trillion figure.
Musk’s involvement in cost-cutting measures has raised concerns about his influence over federal financial systems. The New York Times previously reported on his potential access to the Treasury system, which processes more than $6 trillion annually in government payments, including Social Security benefits and tax refunds.
Democratic Senator Peter Welch, a member of the Senate Finance Committee, criticized Musk’s role, stating in an email, “It’s a gross abuse of power by an unelected bureaucrat, and it shows money can buy power in the Trump White House.”
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Musk’s Growing Influence in Government
Trump, when asked about Musk’s performance, responded, “He’s a big cost-cutter. 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.”
Musk’s team has reportedly gained access to or taken control of multiple government systems. Reuters reported on Friday that officials overseeing the U.S. government’s human resources agency had been locked out of key databases containing personal information on millions of federal employees.
Since Trump’s inauguration on January 20, his administration has aggressively reshaped the federal workforce, firing or sidelining hundreds of civil servants while installing loyalists in key positions. Musk’s swift moves to consolidate control over agencies such as the Office of Personnel Management (OPM) suggest that his role in reshaping the government’s structure is only expanding.
