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Musk Proposes Shutting Down USAID as Part of Government Cost-Cutting Effort
Published On Mon, 03 Feb 2025
Tara Menon
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Elon Musk, the billionaire CEO of Tesla and SpaceX, who is leading President Donald Trump's initiative to reduce the size of the federal government, shared an update on their progress during a social media discussion on X (which Musk also owns) on Monday (Feb 3). He revealed that they are working towards shutting down the U.S. Agency for International Development (USAID) as part of their efforts to streamline government operations. Musk called USAID "beyond repair" and mentioned that Trump supports its closure.
The conversation, which also featured former Republican presidential candidate Vivek Ramaswamy and Republican Senators Joni Ernst and Mike Lee, began with Musk discussing the shutdown of USAID. This comes after Reuters reported that the Trump administration had removed two senior security officials at USAID for attempting to block Musk’s Department of Government Efficiency (DOGE) representatives from accessing restricted areas of the building.
USAID, the world’s largest single donor, allocated $72 billion in assistance worldwide in 2023, supporting various humanitarian and development programs. Musk’s statements came amid concerns about the potential consequences of halting these vital programs, including medical treatments for diseases like HIV and disaster relief efforts. Trump has ordered a freeze on most foreign aid as part of his "America First" policy.
Musk also mentioned efforts to cut U.S. spending and fraud, estimating the Trump administration could reduce the national deficit by $1 trillion in the next year. He claimed that "professional foreign fraud rings" are stealing significant sums of money, though he did not provide evidence to support this claim.
Meanwhile, concerns have arisen about Musk's access to the U.S. Treasury system, which handles over $6 trillion in payments annually and contains sensitive personal data. Democratic Senator Peter Welch raised alarms about Musk's access to taxpayer data, calling it an abuse of power.
Despite the criticism, Trump expressed support for Musk, praising his cost-cutting efforts and describing him as "very smart" and effective at reducing the federal budget. Musk’s team has also gained access to key government agencies, including the Office of Personnel Management, where they have taken control of critical systems.
Disclaimer: This image is taken from Reuters.