Elon Musk announced that he and President Donald Trump are in the process of shutting down the U.S. Agency for International Development (USAID). The announcement, made during an audio-only appearance on Musk's social media platform X, marks a significant step in a broader agenda aimed at overhauling federal agencies. Musk and Trump have characterized these agencies as "beyond repair" and "hopeless," indicating a drastic approach to federal governance.
During the announcement, Musk detailed the joint effort with Trump to dismantle USAID, an agency created by President John F. Kennedy in 1961 to administer foreign assistance programs. The agency's closure is part of a wider initiative to streamline government operations, which Musk has previously advocated for. His statements during the call underscored a radical shift in administrative philosophy.
"We're in the process" of "shutting down USAID." – Elon Musk
The announcement comes amid recent tensions at USAID, where the director of security and his deputy were placed on administrative leave. This action followed their attempts to block employees from Musk's Department of Government Efficiency (DOGE) from accessing secure systems at USAID. The situation escalated when DOGE employees threatened to involve the U.S. Marshals after being initially denied access to these systems. They eventually gained access, though it remains unclear what information they obtained.
USAID, with a 2023 fiscal year budget of approximately $40 billion, primarily focuses on foreign aid and international charities. The agency relies on annual appropriations from Congress, which, according to the Impoundment Control Act of 1974, cannot be withheld by the president once approved. This legislative framework presents potential legal challenges to the proposed shutdown.
Musk's announcement did not address these legal hurdles. However, his remarks highlighted a fundamental shift in regulatory philosophy.
"Regulations basically should be default gone. Default gone, not default there, default gone." – Elon Musk
Musk was joined on the call by Sen. Joni Ernst of Iowa, a Republican known for her criticism of federal spending. Ernst expressed agreement with Musk's assessment, adding political weight to the announcement. Their collaboration signals a concerted effort within certain political circles to reduce federal involvement in international aid.
The White House has yet to issue an official response to Musk's announcement. However, reports indicate that Trump administration officials have considered placing USAID under the State Department's authority—a move that could contravene existing congressional legislation establishing the agency's independence.
President Trump has also indicated plans to freeze nearly all U.S. foreign assistance pending a comprehensive 90-day review. This decision aligns with the administration's broader scrutiny of federal spending and international commitments.
"This is our shot. This is the best hand of cards we're ever going to have." – Elon Musk
The potential shutdown of USAID raises questions about the future of U.S. foreign aid and its impact on global partnerships. Established over six decades ago, USAID has played a crucial role in delivering humanitarian assistance and promoting development worldwide. Its closure would represent a significant shift in U.S. foreign policy priorities.