Tech billionaire Elon Musk announced early Monday that the Trump administration is moving to shut down the U.S. Agency for International Development (USAID), a federal agency responsible for administering foreign aid. The decision is expected to spark significant legal and political challenges, as the agency’s budget is approved by Congress.
Musk made the announcement in an audio-only event on his social media platform X (formerly Twitter), declaring:
“We’re shutting it down. USAID is beyond repair—hopeless. This agency is not an apple with a worm in it. It’s just a ball of worms.”
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The White House has yet to issue an official statement, but President Donald Trump recently criticized USAID, calling it “run by a bunch of radical lunatics.”
Controversial Move Sparks Legal Questions
Musk did not explain the legal basis for shutting down a federal agency without congressional approval. USAID was created in 1961 by executive order under President John F. Kennedy, but its funding—approximately $40 billion in 2023—is allocated by Congress. The 1974 Impoundment Control Act prohibits the president from withholding funds already approved by lawmakers.
“With regard to USAID, I went over it in detail with the president, and he agreed that we should shut it down,” Musk said.
Some Trump aides argue the law is unconstitutional, setting the stage for a potential court battle.
Tensions Rise Within USAID
Musk’s announcement follows chaos within USAID, where more than 50 career civil servants were placed on administrative leave last week. On Saturday, USAID’s director of security and his deputy were also placed on leave after they attempted to prevent Musk’s Department of Government Efficiency (DOGE) employees from accessing secure USAID systems.
According to multiple sources, DOGE staff threatened to call U.S. Marshals to gain access, and they ultimately succeeded. However, it remains unclear what information they obtained.
Impact on U.S. Foreign Aid
USAID plays a critical role in disaster relief, humanitarian aid, and international development programs worldwide. The agency has also collaborated with Musk’s SpaceX, notably in providing 5,000 Starlink satellite internet terminals to Ukraine in 2022.
Foreign policy experts warn that dismantling USAID could create instability in global aid programs. Senator Joni Ernst (R-Iowa), a longtime critic of federal spending, joined Musk’s call and supported the move, but broader congressional approval remains uncertain.
What Happens Next?
Trump has ordered a 90-day freeze on U.S. foreign assistance, pending further review. Meanwhile, Musk has hinted at additional radical changes, including the deregulation of government agencies.
“This is our shot,” Musk said. “Now or never.”
The decision to shut down USAID faces significant hurdles, including legal challenges, congressional pushback, and international diplomatic concerns. Whether the Trump administration can successfully dismantle one of the nation’s largest foreign aid programs remains to be seen.
