Trump’s cost-cutting strategy includes Elon Musk’s move to shut down USAID

Threatening billions of dollars in US foreign aid, Elon Musk, the leader of Trump’s cost-cutting initiatives, intends to close USAID.

Billionaire Elon Musk has announced plans to shutter the United States Agency for International Development (USAID), which is at the center of US President Donald Trump’s cost-cutting agenda.

In an early Monday social media conversation on X (previously Twitter), Musk called the agency “beyond repair” and stated that Trump is in favor of closing it.

Senators Joni Ernst and Mike Lee, as well as former Republican presidential candidate Vivek Ramaswamy, participated in the discussion, which centered on the work of the recently formed Department of Government Efficiency (DOGE), the cost-cutting group that Trump designated Musk to head.

In 2023, USAID—the biggest single contributor in the world—allocated $72 billion for humanitarian assistance, which included interventions for HIV/AIDS, clean water, women’s health services, and anti-corruption campaigns. In 2024, 42% of all humanitarian aid reported by the UN came from the organization.

Under his “America First” approach, Trump has already placed a block on the majority of US foreign aid, endangering vital international initiatives like clearing landmines in conflict zones and field clinics in Thai refugee camps. Over the weekend, the agency’s website was down, adding to the rumors surrounding its whereabouts. In all, USAID employs almost 10,000 individuals.

There is criticism over Musk’s role in government activities. Two senior USAID security personnel were dismissed over the weekend, according to Reuters, for trying to prevent Musk’s team from entering restricted parts of the organization. Concerns have also been raised regarding Musk’s access to the Treasury system, which was first made public by the New York Times. The Treasury system handles over $6 trillion in payments annually on behalf of federal agencies and holds the personal data of millions of Americans who receive tax refunds, Social Security benefits, and other government funds.

Democratic Senator Peter Welch has referred to Musk’s conduct as “a gross abuse of power” and called for explanations. He voiced worries that Musk’s sway is a reflection of “money buying power in the Trump White House.”

Musk asserts that the Trump administration can reduce the U.S. deficit by $1 trillion in the upcoming year, claiming that “professional foreign fraud rings” are embezzling enormous sums of money by fabricating digital US citizens. He did not, however, offer any proof supporting his assertions.

However, Trump continues to have faith in Musk’s ability to lead. “He’s quite frugal… I think he’s doing a fantastic job, but sometimes we won’t agree. “He’s very intelligent and very interested in reducing the budget,” the president stated.

In his hasty reorganization of the federal government since taking office eleven days ago, Trump has dismissed and marginalized hundreds of public servants.

Two officials from the US government’s human resources office claim that Musk has prevented career civil servants from accessing computer systems that hold the personal information of millions of federal employees.

The Office of Personnel Management is the agency where Musk has quickly installed supporters. OPM was taken over by a group of Musk’s present and former workers on January 20, the day Trump took office.

Both locally and abroad, worries about accountability and the effects of these significant changes are only growing as the government continues its downsizing efforts.