Musk says USAID to be shut down in government cost-cutting drive

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(Corrects paragraph 8 to say the United States is the world’s largest single donor.)

By David Shepardson and Chris Sanders

WASHINGTON (Reuters) -Billionaire Elon Musk, who is heading U.S. President Donald Trump’s drive to shrink the federal government, gave an update on the effort early Monday, saying work is underway 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 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.

Meanwhile, most USAID staffers were told not to report to the agency’s headquarters in Washington on Monday and to work remotely, according to a copy of an email to personnel reviewed by Reuters. “Further guidance will be forthcoming,” the note said.

On Sunday, Reuters reported the Trump administration removed two top security officials at USAID during the weekend after they tried to stop DOGE representatives from gaining access to restricted parts of the building, three sources said.

Trump later on Sunday told reporters that USAID has “been run by a bunch of radical lunatics,” adding: “We’re getting them out, and then we’ll make a decision.”

The U.S. 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.

A TRILLION DOLLARS

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 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 figure of $1 trillion.

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.

Asked Sunday if Musk was doing a good job, Trump said: “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.”

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 U.S. 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 on Jan. 20, 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.

(Reporting by David Shepardson, Chris Sanders and Jonathan Landay in Washington and Peter Henderson in San Francisco; Editing by Michael Perry, Susan Heavey and Ros Russell)