Musk Says USAID Shutting Down in Cost-Cutting Government Initiative

Elon Musk has announced plans to shut down the U.S. Agency for International Development (USAID) as part of a government cost-cutting initiative. Musk, who leads the Department of Government Efficiency (DOGE) under President Donald Trump, made the announcement during an X Spaces discussion early Monday morning. "We’re shutting it down," Musk declared, adding that Trump had "concurred" with his assessment. "I confirmed with him several times. 'Are you certain?' Yes, we are shutting it down," Musk stated.

USAID, established in 1961 by President John F. Kennedy, has been a cornerstone of U.S. foreign aid efforts, with a budget of approximately $40 billion in 2023. Critics argue that dismantling the agency could undermine U.S. global influence and national security by creating a vacuum for rivals like China to fill in developing nations. Democratic lawmakers have raised concerns about Musk’s influence in government operations, with Senate Minority Leader Chuck Schumer stating that the president cannot unilaterally close a federal agency without Congressional approval.

The announcement follows a tense weekend at USAID, where two senior security officials were placed on administrative leave after denying DOGE personnel access to classified systems due to their lack of security clearances. Musk described USAID as "beyond repair" and "a criminal organization," asserting that its operations should cease entirely. The Trump administration has also frozen most foreign aid pending a review.