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Musk says USAID 'beyond repair, working to shut it down

A woman and her daughter attend a medical consultation at a mobile clinic operated by the Institute for Population Health and Development, in partnership with USAID and IOM in Haiti
A woman and her daughter attend a medical consultation at a mobile clinic operated by the Institute for Population Health and Development, in partnership with USAID and IOM in Haiti

Elon Musk, who is heading US President Donald Trump's efforts to shrink the federal government has said there is work under way to shut down the US foreign aid agency, USAID.

Mr Musk, who is also CEO of Tesla and SpaceX, discussed the Department of Government Efficiency (DOGE) in a social media talk on X, which he also owns.

Mr Trump has assigned Mr Musk to lead a federal cost-cutting panel.

The conversation, which included former Republican presidential candidate Vivek Ramaswamy and Republican Senator Joni Ernst and Mike Lee, began with Mr Musk saying they were working to shut down the United States Agency for International Development (USAID).

"It's beyond repair," Mr Musk said, adding that President Trump agrees it should be shut down.

Yesterday, Reuters reported the Trump administration removed two top security officials at USAID during the weekend after they tried to stop representatives from Mr Musk's department from gaining access to restricted parts of the building, three sources said.

The US is the world's largest single donor.

Vegetable seeds are distributed to more than 200,000 households in frontline and de-occupied communities under a USAID programme in Ukraine

In fiscal year 2023, the US 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 yesterday. USAID has a staff of more than 10,000 people.

Mr Trump has ordered a global freeze on most US 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 programmes at risk of elimination.

Speaking more broadly about cutting US expenses and fraud, Mr Musk estimated the Trump administration can cut $1 trillion from the US deficit next year.

He asserted, for example, that "professional foreign fraud rings" are stealing money vast sums by masquerading as or creating fake digital US citizens.

Elon Musk has claimed the agency is 'beyond repair'

Mr Musk did not offer any evidence to support his fraud claim or explain how he reached the amount of $1 trillion.

The online chat comes amid concerns about Mr Musk's access to the US 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 Mr Musk had been handed access to the payment system and what Mr 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," Mr Welch said in an emailed statement.

Mr Musk has the president's support. Asked if Mr Musk was doing a good job, Mr Trump agreed.

"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. He's a smart guy. Very smart. And he's very much into cutting the budget of our federal budget," Mr Trump said yesterday.

Mr Musk's team have been given access to or taken control of numerous government systems.

Reuters reported on Friday, that aides to Mr Musk charged with running the US 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.

Mr 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 Mr Musk assumed command of OPM on 20 January, the day Mr Trump took office, the sources added.

Since taking office 11 days ago, Mr 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.