Billionaire entrepreneur Elon Musk, currently leading President Donald Trump’s agenda to streamline the federal government, has shared insights on plans to close the United States Agency for International Development (USAID). In a recent discussion held on the platform X (formerly Twitter), Musk stated, “It’s beyond repair,” asserting that the agency requires termination.
Background on USAID
USAID stands as the world’s largest single donor of foreign aid, allocating US$72 billion in the fiscal year 2023 for various global initiatives, including:
- Women’s health in conflict areas
- Access to clean water
- HIV/AIDS treatments
- Energy security
- Anti-corruption measures
According to the latest reports, the agency accounted for 42 per cent of all humanitarian aid recorded by the United Nations in 2024.
Changes in Leadership
Just recently, the Trump administration took significant measures by removing two senior security officials at USAID. The ousters were reportedly in response to an incident where the officials attempted to prevent Musk’s representatives from accessing restricted areas within the agency.
Concerns Over Data Access
The ongoing dialogue around Musk’s initiatives has raised eyebrows, particularly regarding his access to the Treasury system. This system disburses over US$6 trillion annually for various federal payments and holds sensitive data related to millions of Americans. Senator Peter Welch has voiced his concerns, labelling Musk’s access to this data as a “gross abuse of power”.
Trump’s Support for Musk
Trump’s backing of Musk is evident, as he praised him in a recent statement, saying: “He’s a big cost-cutter. Sometimes we won’t agree with it… But I think he’s doing a great job. He’s a smart guy. Very smart.” These remarks suggest that Musk’s strategies may continue, even amid operational challenges.
The Future of USAID
As the conversation around USAID’s potential dismantling unfolds, it remains uncertain what this would mean for international aid programs currently reliant on federal support. From critical health initiatives to humanitarian efforts, many programs could be left in limbo should the agency be abolished.