Elon Musk Announces Shutdown of USAID with Trump’s Backing, Ignites Controversy

Tech billionaire Elon Musk revealed late Monday that he and President Donald Trump are moving to shut down the U.S. Read more

Feb 3, 2025 - 15:02
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Elon Musk Announces Shutdown of USAID with Trump’s Backing, Ignites Controversy

Tech billionaire Elon Musk revealed late Monday that he and President Donald Trump are moving to shut down the U.S. Agency for International Development (USAID), escalating their campaign to overhaul the federal government. Musk, who heads Trump’s government efficiency initiative, made the announcement during an audio-only appearance on his social media platform, X, claiming the agency is "beyond repair" and "hopeless."

Musk stated that the decision to dismantle USAID has "the full support of the president," adding that he had discussed the matter with Trump multiple times. "I actually checked with him a few times and said, ‘Are you sure?’" Musk recounted. "He said, ‘Yes.’" However, Musk did not clarify the legal authority behind the move, which would require congressional approval under the 1974 Impoundment Control Act.

The announcement follows a chaotic weekend at USAID, where the agency’s security director and deputy were placed on administrative leave after attempting to block Musk’s Department of Government Efficiency (DOGE) from accessing secure systems. DOGE employees reportedly threatened to call U.S. Marshals to gain entry, raising concerns about the administration’s aggressive tactics.

USAID, established by President John F. Kennedy in 1961, has an annual budget of approximately $40 billion and plays a critical role in global humanitarian efforts, including disaster relief, health programs, and economic development. Trump has already frozen most U.S. foreign aid pending a 90-day review, aligning with his "America First" policy.

Musk’s sweeping reforms extend beyond USAID, as he hinted at plans for the "wholesale removal of regulations" across federal agencies. "Regulations should be default gone," he declared, emphasizing the urgency of the administration’s efforts. "This is our shot. This is the best hand of cards we’re ever going to have. Now or never."

The move has sparked widespread criticism, with legal experts and Democratic lawmakers arguing that shutting down USAID without congressional approval would violate federal law. Meanwhile, Republican Senator Joni Ernst expressed support for Musk’s assessment, though the broader Republican response remains unclear.

As the Trump administration continues its aggressive restructuring of the federal government, the potential shutdown of USAID marks a pivotal moment in its ongoing battle with Congress and the federal bureaucracy.

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