Musk says USAID to be shut down in cost-cutting drive, says it's 'beyond repair'
- 03 Feb 2025
Billionaire Elon Musk, who is heading US President Donald Trump's drive to shrink the federal government, gave an update on the effort early on Monday, saying work is underway to shut down the US foreign aid agency USAID.
Musk, who is also CEO of Tesla and SpaceX, discussed the Department of Government Efficiency (DOGE) in a social media talk on Monday on X, which he also owns. Trump has assigned Musk to lead a federal cost-cutting panel.
The conversation, which included former Republican presidential candidate Vivek Ramaswamy and Republican Senators Joni Ernst and Mike Lee, began with Musk saying 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 the Trump administration removed two top security officials at USAID during the weekend after they tried to stop representatives from Musk's Department of Government Efficiency (DOGE) from gaining access to restricted parts of the building, three sources said.
USAID is the world's largest single donor.
In fiscal year 2023, the US 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.
Field hospitals in Thai hospitals affected
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 US 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 programmes at risk of elimination.
Speaking more broadly about cutting US expenses and fraud, Musk estimated the Trump administration can cut $1 trillion from the US deficit next year.
He asserted, for example, that "professional foreign fraud rings" are stealing vast sums by masquerading as or creating fake digital US citizens.
Musk did not offer any evidence to support his fraud claim or explain how he reached the amount of $1 trillion.
Concerns over Musk's access
The online chat comes amid concerns about Musk's access to the Treasury system, first reported by the New York Times, that sends out more than $6 trillion 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 monies from the government.
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 on Sunday if Musk was doing a good job, 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 has been given access to or has taken control of numerous government systems.
Reuters reported on Friday that aides to Musk charged with running the US government human resources agency have locked career civil servants out of computer systems that 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.
