Elon Musk, who is leading US President Donald Trump’s initiative to reduce the size of the federal government, has announced ongoing efforts to dismantle the US foreign aid agency, USAID.
Mr. Musk, also the CEO of Tesla and SpaceX, elaborated on the Department of Government Efficiency (DOGE) during a discussion on the social media platform X, which he owns.
President Trump has appointed Mr. Musk to spearhead a federal cost-cutting panel.
The dialogue, which featured former Republican presidential candidate Vivek Ramaswamy and Republican Senators Joni Ernst and Mike Lee, commenced with Mr. Musk indicating that they were aiming to terminate the operations of the United States Agency for International Development (USAID).
On the previous day, Reuters disclosed that the Trump administration had dismissed two senior security officials at USAID over the weekend after they attempted to block representatives from Mr. Musk’s department from accessing restricted areas within the building, according to three sources.
The United States remains the largest singular donor globally.
Vegetable seeds are being provided to over 200,000 households in frontline and newly accessible communities through a USAID initiative in Ukraine.
In the fiscal year 2023, the US distributed $72 billion in assistance globally, addressing various issues from women’s health in conflict zones to access to clean water, HIV/AIDS treatments, energy security, and anti-corruption efforts. It accounted for 42% of all humanitarian aid tracked by the United Nations in 2024.
As of Saturday, USAID’s website appeared to be down, and some users reported issues accessing it yesterday. The agency employs over 10,000 personnel.
Mr. Trump has implemented a global halt on most US foreign aid as part of his “America First” policy, a move that is causing significant unrest globally. Programs at risk of cancellation include field hospitals in Thai refugee camps, landmine removal in conflict zones, and therapies for millions afflicted by diseases like HIV.
Discussing broader themes of US spending cuts and fraud, Mr. Musk estimated that the Trump administration could reduce the US deficit by $1 trillion in the upcoming year.
He contended that, for instance, “professional foreign fraud rings” are misappropriating vast amounts of money by posing as or fabricating fake digital US citizens.
Mr. Musk has stated that the agency is ‘beyond repair.’
However, Mr. Musk did not provide any proof to substantiate his fraud allegations or clarify how he arrived at the $1 trillion figure.
This online dialogue comes amid worries about Mr. Musk’s access to the US Treasury system, first reported by the New York Times. This system disburses more than $6 trillion per year in payments for federal agencies and contains personal information of millions of Americans receiving Social Security, tax refunds, and other government disbursements.
Democrat Peter Welch, a member of the Senate Finance Committee, demanded clarification on why Mr. Musk was granted access to the payment system, which includes sensitive taxpayer data.
“This is a gross abuse of power by an unelected bureaucrat and illustrates how money can influence power within the Trump White House,” Mr. Welch said in a statement via email.
Mr. Musk has the backing of the president. When asked if Mr. Musk was performing well, Mr. Trump concurred.
“He’s a significant cost-cutter. At times, we might not see eye to eye, and we may not follow his direction. But I believe he’s doing an excellent job. He’s a smart individual. Very smart. And he’s deeply committed to reducing our federal budget,” Mr. Trump stated yesterday.
Mr. Musk’s team has been granted access to or taken charge of several governmental systems.
On Friday, Reuters reported that aides to Mr. Musk responsible for overseeing the US government human resources agency had barred career civil servants from accessing computer systems containing the personal data of millions of federal workers, according to two agency officials.
Mr. Musk has quickly positioned allies within the agency known as the Office of Personnel Management. A team comprising current and former Musk associates took command of OPM on January 20, the same day Mr. Trump assumed office, the sources noted.
Since his inauguration 11 days ago, Mr. Trump has initiated a sweeping government overhaul, dismissing and marginalizing hundreds of civil servants as part of his efforts to downsize the bureaucracy and install more loyal supporters.
