Billionaire Elon Musk, who is leading US President Donald Trump‘s efforts to make drastic cuts to federal spending, said today that he is working to close the US Agency for International Development (USAID).
Musk, the head of Tesla and SpaceX, discussed the work of the newly created Department of Government Efficiency (DOGE) – which he leads – with users at X, which he owns, today. Trump has asked Musk to rein in federal government spending and make it more efficient.
Joining the debate were Vivek Ramaswamy – a former candidate for the Republican nomination – and Republican senators Johnny Ernst and Mike Lee.
Musk said they are working to shut down USAID. “It’s not fixable,” he assessed.
Yesterday Sunday the world’s richest man had attacked USAID via a post on X, in which he said the agency “is a criminal organisation”, adding: “Did you know that USAID, using your tax dollars, funded research into biological weapons, including Covid-19, that killed millions of people?”.
Also yesterday Reuters reported that two top USAID security officials were suspended on Saturday night for opposing giving Musk’s representatives access to sensitive data.
USAID is the world’s largest donor of humanitarian aid. In fiscal year 2023, the US provided $72 billion in aid around the world, in programs covering women’s health services, access to clean water, HIV/AIDS treatments, energy security and anti-corruption. In 2024, the agency provided 42% of all humanitarian assistance recorded by the UN.
Trump has called for a freeze on nearly all US aid under his “America First” policy, causing shockwaves among humanitarian organizations.
Referring more broadly to US spending cuts and tackling corruption, Musk estimated that the Trump administration could reduce the US deficit by a trillion dollars next year.
Meanwhile, there is concern in the US after the New York Times, which reported that Musk gained access to the Treasury Department’s system, which makes payments of $6 trillion a year on behalf of federal agencies and which contains the personal information of millions of Americans who receive benefits, tax refunds and other government benefits.
Democrat Peter Welch, a member of the Senate Finance Committee, has demanded an explanation for why Musk gained access to the payment system, which he alleged contains sensitive personal data of taxpayers.
However, Musk appears to have the support of the US president. When asked if Musk is doing a good job, Trump replied, “He’s very good at cutting spending. Sometimes we won’t agree with that and we won’t go where he wants. But I think he’s doing a very good job. He’s a smart guy, very smart. And he’s very much reducing our federal budget.”
Musk’s team has gained access to many government systems. For the 11 days since taking over the US presidency, Trump has embarked on a major restructuring of the federal government by firing or sidelining hundreds of civil servants in his first steps toward cutting red tape and appointing people loyal to him.
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