Elon Musk, billionaire and CEO of Tesla and SpaceX, announced on Monday (3) that the United States Agency for International Development (USAID) will be shut down. The announcement was made during a live broadcast on the social media platform X, alongside former government colleague Vivek Ramaswamy and Republican senators Joni Ernst and Mike Lee. Musk, who currently leads the Department of Government Efficiency (DOGE) in Donald Trump’s administration, stated that the agency, one of the largest global humanitarian donors, is a “nest of worms” and beyond any possibility of reform. According to Musk, the decision has the full backing of President Donald Trump, who had already ordered the freezing of billions of dollars in foreign aid as part of his “America First” policy.
The USAID headquarters, located in Washington, was closed, and employees were barred from entering the building. Additionally, the agency’s official Instagram account was suspended, and its website has been offline since Saturday (1). Musk declared that USAID is a “criminal organization” and that its existence is unjustifiable, accusing it of misusing public funds. In the 2023 fiscal year, USAID distributed approximately $72 billion in humanitarian aid, covering areas such as women’s health in conflict zones, anti-corruption efforts, energy security, access to clean water, and HIV/AIDS treatments.
Musk’s decision has sparked strong international reactions, particularly due to the impact of the agency’s closure on essential programs benefiting millions of people worldwide. The freeze on funding has already affected vulnerable regions, including refugee camps in Thailand and war zones where landmine removal operations were underway. Furthermore, medications for diseases like HIV are at risk of running out, endangering patients who rely on USAID-supported treatments.
Global impact of USAID’s closure
USAID is the United States’ primary humanitarian agency and has become the largest provider of financial assistance to developing countries over the decades. Its annual budget surpasses that of many international institutions, making its dissolution a drastic measure in the global landscape. Various governments and humanitarian organizations have expressed concerns about the consequences of this decision, as a significant portion of global development aid relies directly on USAID funding.
Musk and Trump’s decision could severely impact countries that depend on American aid to sustain critical projects, including vaccination campaigns, sanitation infrastructure, and food security initiatives. Without these programs, millions could face worsening crises, including higher child mortality rates, disease outbreaks, and food insecurity in already vulnerable regions. Furthermore, the UN estimates that about 42% of all global humanitarian aid tracked by the organization in 2024 came from USAID, highlighting the vast gap its closure will leave.
Political reactions and controversy over the decision
Musk’s decision has not been well received by many politicians, including within the United States. Democrat Peter Welch, a member of the Senate Finance Committee, called the move a “gross abuse of power” and questioned the access Musk and his team obtained to sensitive government systems, including U.S. Treasury data. The New York Times revealed that Musk’s advisors have already taken control of several strategic agencies and prevented career officials from accessing essential databases, raising concerns about the concentration of power in the hands of an unelected businessman.
Additionally, the firing of senior USAID officials over the weekend, following a standoff involving DOGE representatives trying to access restricted areas of the agency’s building, has escalated tensions. Opponents accused Musk of executing an authoritarian takeover of key government sectors, while supporters argue that the agency had become a symbol of waste and corruption.
History of USAID and its international importance
USAID was founded in 1961 by then-President John F. Kennedy to coordinate the United States’ humanitarian and development assistance worldwide. Over the decades, the agency has become a key instrument of U.S. foreign policy, providing support to countries facing emergencies, natural disasters, and health crises.
Some of its most significant programs include:
- HIV/AIDS initiative: Provides medication and treatment to millions of patients in developing countries.
- Food security and nutrition projects: Distributes food aid and supports sustainable agricultural development.
- Access to clean water and sanitation: Implements infrastructure to ensure safe drinking water in vulnerable regions.
- Conflict zone assistance: Aids communities affected by wars and natural disasters with emergency support.
- Anti-corruption and governance programs: Promotes initiatives to strengthen democratic institutions in unstable nations.
The shutdown of USAID may result in the immediate suspension of critical initiatives, directly impacting vulnerable populations and the stability of various regions.
Musk’s access to the U.S. Treasury system raises concerns
Another controversial aspect is the access Musk and his team have gained to the U.S. Treasury’s payment system, which processes over $6 trillion annually in federal agency and social program disbursements. This system contains sensitive data on millions of Americans, including information on Social Security benefits, tax refunds, and government payments.
Revelations that Musk’s advisors blocked career employees from accessing these systems have heightened concerns among experts about potential misuse of such information. Critics argue that allowing an unelected businessman to control key financial mechanisms of the government could open the door to abuse and conflicts of interest.
The future of U.S. humanitarian aid
With USAID’s closure, the Trump administration may seek new ways to distribute foreign aid or significantly reduce U.S. involvement in international assistance programs. Experts warn that the agency’s absence could create an opportunity for countries like China and Russia to expand their global influence through strategic investments and financial aid programs.
It remains unclear whether the government will create a new structure to replace USAID or simply terminate most foreign aid programs. Meanwhile, international organizations and U.S. allies are assessing alternatives to mitigate the impact of this decision.