Elon Musk, billionaire CEO of Tesla and SpaceX, shared an update on his role in U.S. President Donald Trump’s efforts to reduce the size of the federal government, revealing that work is underway to shut down the U.S. Agency for International Development (USAID). Musk, who leads a federal cost-cutting panel called the Department of Government Efficiency (DOGE), stated that USAID is “beyond repair” and that Trump agrees the agency should be dissolved. This announcement was made during a social media conversation on Musk’s platform, X, which he owns.
Musk’s comments came alongside former Republican presidential candidate Vivek Ramaswamy and Senators Joni Ernst and Mike Lee. In a related move, most USAID staff were told to work remotely, as per an email reviewed by Reuters. The agency has also experienced a shake-up with the removal of two top security officials after they attempted to block DOGE representatives from accessing restricted areas of the agency’s headquarters.
The U.S. has historically been the largest global donor, with USAID contributing significantly to humanitarian efforts such as health programs, clean water access, and anti-corruption work. In fiscal year 2023, the U.S. disbursed $72 billion in foreign aid. However, Trump’s “America First” policy has led to a global freeze on most U.S. foreign aid, impacting critical programs such as field hospitals and disease treatment in developing countries.
During the conversation, Musk also discussed broader efforts to cut the U.S. budget, suggesting that the administration could reduce the deficit by $1 trillion. He claimed that fraudulent foreign operations were siphoning off large sums from the U.S. but did not provide supporting evidence for his statement. This estimate and Musk’s involvement in controlling key government systems have raised concerns, particularly regarding his access to sensitive U.S. Treasury data.
Democrats have questioned the scope of Musk’s influence, with Senator Peter Welch calling it “a gross abuse of power” and pointing out that Musk’s access to taxpayer information could pose serious risks. Meanwhile, Trump praised Musk for his cost-cutting efforts, though acknowledged that not all of Musk’s approaches would be universally agreed upon.