Musk Hints At Shutting Down USAID, Calls It An Agency Beyond Repair

Top Billionaire Elon Musk has indicated that the United States Agency for International Development (USAID) may soon be shut down.Musk who is leading US President Donald Trump’s federal cost-cutting initiative, during a discussion on X stated that the agency is “beyond repair,” adding that Trump supports its closure. On February 2, Musk accused USAID of being “a criminal organisation” without providing any evidence and added “Time for it to die”.

Most USAID staff were instructed not to report to the agency's Washington headquarters on Monday and to work remotely, according to an email reviewed by Reuters. The message added that "further guidance will be forthcoming." Reuters also reported that the Trump administration removed two senior security officials at USAID over the weekend after they tried to prevent representatives from Musk's Department of Government Efficiency (DOGE) from accessing restricted areas of the building, citing three sources.

This move is part of a broader restructuring effort led by Musk’s DOGE, which aims to significantly cut government spending.

How Will This Impact Globally?

As one of the largest official development aid agencies in the world, USAID plays a vital role in global humanitarian efforts. In 2023, the US provided $72 billion in aid, supporting programs such as women’s health in conflict zones, clean water access, HIV/AIDS treatment, and energy security.

USAID accounted for 42% of all humanitarian aid tracked by the United Nations in 2024.

The suspension of US foreign aid has already disrupted key programs, including field hospitals in Thai refugee camps, landmine clearance in conflict zones, and medical treatments for millions suffering from diseases like HIV.

Aid organizations warn that if USAID is permanently shut down, it could lead to severe humanitarian crises worldwide. Countries that depend on US aid for economic development, disaster relief, and security could face major setbacks, potentially allowing rival global powers to fill the gap.

Established in 1961 by President John F. Kennedy during the Cold War as a means to counter Soviet influence through economic aid and development, USAID’s potential dismantling has ignited a heated debate in Washington. Trump and his Republican allies argue that foreign aid is wasteful and should be redirected to support "America First" policies, while Democrats contend that eliminating USAID oversteps executive power.

Senator Chris Murphy has condemned the move as an abuse of executive authority, and House Foreign Affairs Committee Chair Brian Mast has suggested that moving USAID under the State Department would allow for more centralized control.

Meanwhile, concerns are mounting about Musk’s growing influence within the federal government.