Elon Musk working to close U.S. foreign aid agency, USAID

February 03, 2025 (MLN): Billionaire Elon Musk, who is heading U.S. President Donald Trump's efforts to shrink the federal government, gave an update on the effort early Monday, saying they are working to shut down the U.S. foreign aid agency USAID.

Musk, who is also CEO of Tesla and SpaceX, discussed the Department of Government Efficiency (DOGE) in a Monday social media talk on X, which he also owns.

Trump has assigned Musk to lead a federal cost-cutting panel.

The conversation included former Republican presidential candidate Vivek Ramaswamy, Republican Senator Joni Ernst, and Mike Lee.

It began with Musk stating that they were working to shut down the United States Agency for International Development (USAID).

"It's beyond repair," Musk said, 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 over the weekend, as Reuters reported.

The officials were dismissed after attempting to stop representatives from billionaire Musk's Department of Government Efficiency (DOGE) from gaining access to restricted parts of the building, according to three sources.

USAID is the world's largest single donor.

In fiscal year 2023, the U.S. disbursed $72 billion of assistance worldwide on everything from women's health in conflict zones to access to clean water, HIV/AIDS treatments, energy security and anti-corruption work.

It provided 42% of all humanitarian aid tracked by the United Nations in 2024.

The website of USAID appeared to still be offline on Saturday and some users could not access it on Sunday.

USAID has a staff of more than 10,000 people.

Trump has ordered a global freeze on most U.S. foreign aid as part of his "America First" policy which is already sending shockwaves around the world.

Field hospitals in Thai refugee camps, landmine clearance in war zones, and drugs to treat millions suffering from diseases such as HIV are among the programs at risk of elimination.

Speaking more broadly about cutting U.S. expenses and fraud, Musk estimated the Trump administration can cut $1 trillion from the U.S. deficit next year.

He asserted, for example, that "professional foreign fraud rings" are stealing money vast sums by masquerading as or creating fake digital U.S. citizens.

Musk did not offer any evidence to support his fraud claim or explain how he reached the amount of $1tr.

The online chat comes amid concerns about Musk's access to the Treasury system, first reported by the New York Times.

The system sends out more than $6tr per year in payments on behalf of federal agencies and contains the personal information of millions of Americans who receive Social Security payments, tax refunds, and other government monies.

Democrat Peter Welch, a member of the Senate Finance Committee, called for explanations as to why Musk had been handed access to the payment system and what Welch said included taxpayers' sensitive 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.

Musk has Trump's support. Asked if Musk was doing a good job Sunday, Trump agreed.

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. He's a smart guy. Very smart.

And he's very much into cutting the budget of our federal budget.

Musk's team have been given access to or take control of numerous government systems.

Reuters reported on Friday that aides to Musk, charged with running the U.S. government human resources agency, have locked career civil servants out of computer systems.

These systems contain the personal data of millions of federal employees, according to two agency officials.

Musk has moved swiftly to install allies at the agency known as the Office of Personnel Management.

A team, including current and former employees of Musk, assumed command of OPM on Jan. 20, the day Trump took office, the sources added.

Since taking office 11 days ago, Trump has embarked on a massive government makeover, firing and sidelining hundreds of civil servants in his first steps toward downsizing the bureaucracy and installing more loyalists.

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