After 64 Years, USAID's History Ends in Elon Musk's Hands

WASHINGTON, MONDAY — Public speculation over the past few days has been answered with a post by billionaire Elon Musk on X regarding the continuation of the United States Agency for International Development or USAID. The agency will be closed as part of government budget cuts. Most of its employees have been asked to take indefinite leave since last week.

Musk announced it at X Spaces, Monday (3/2/2025). Musk, the world's richest person according to Forbes magazine, was appointed by US President Donald Trump to head the Department of Government Efficiency (DOGE). "I have had many meetings with the President. His decision is that USAID must be closed," said Musk.

The uncertainty of USAID's fate began at the end of January 2025 when Trump announced the suspension of USAID operations for the next 90 days. The reason was that he wanted to review USAID's policies and implementation to align with the spirit of America's resurgence (Make America Great Again/MAGA). According to the MAGA principle, domestic interests of the US are prioritized, so all funds or aid to foreign countries are set aside.

Based on United Nations data, the US contributes 42 percent of global aid. The amount in 2024 is equivalent to 13.9 billion US dollars. This fund is used for various purposes, from seeking HIV/AIDS treatment, clearing former conflict areas of landmines, empowering farmers and plantation workers, to financing various field hospitals in different countries.

In Thailand, for example, USAID funded various refugee camps for Myanmar citizens. It is estimated that 100,000 Myanmar citizens have fled their country since the military junta launched a coup in 2021. These camps were forced to close because aid was halted.

US Secretary of State Marco Rubio on January 29, 2025, issued a circular regarding the types of foreign aid programs exempted from the freeze. In total, the value of US foreign aid in question by Trump amounts to 60 billion US dollars, which is channeled through various global institutions.

“Programs that provide for medicine, health care, food and shelter, and logistics to support human survival are not included in the list of programs that are suspended,” Rubio wrote in the circular, quoted by the Washington Post. In contrast, programs that provide for gender equality and the protection or empowerment of ethnic minorities are frozen.

However, Rubio's circular letter did not help. On Sunday (2/2/2025), when Trump was asked by reporters about the future of USAID, he said that the agency did not align with the spirit of MAGA. "USAID is run by crazy and radical people. We will expel them first, then we will make a decision," he said.

Since Saturday (February 1, 2025), the official USAID website has been inactive. Moreover, USAID Executive Director Matt Hopson, who was appointed by Trump, has also resigned. There is still no clarity regarding the fate of the 10,000 USAID employees spread across the world. Several employees in the US have been asked to take indefinite leave since last week.

Trump wants USAID merged into the State Department. In fact, USAID has always been an independent government agency and is not under any ministry. Trump ordered DOGE to inspect the USAID office in Washington DC. DOGE wanted to see files on employees and security systems, but USAID refused to give permission.

Trump's desire to merge USAID into the US State Department is also questionable because there is no rule stating that the president can do so. USAID was established based on the Foreign Assistance Act of 1961. The mandate of the law is to create an independent institution that distributes humanitarian aid honestly and sincerely without any embellishment of US domestic or foreign politics. Real evidence is that USAID also has an aid program in Iran, a country that does not have diplomatic relations with the US.

Musk-led DOGE was indeed tasked by Trump to review the operation of all US federal government agencies. Musk estimated that for the 2026 fiscal year, DOGE could save up to 1 trillion US dollars from various budget cuts. Musk threw out conspiracy theories that various foreign aids were used as a means of money laundering and criminal syndicates created fake accounts. There is no evidence for this statement.

Through DOGE, Musk was given access to examine the personal files of US federal agency employees. This was criticized by the US Democratic Party. "This is an abuse of authority. There is no legal basis for Musk or DOGE to read other people's personal and confidential files," said Pete Welch, a member of the US Senate Finance Committee.

Democratic U.S. Representative Alexandria Ocasio-Cortez tweeted at X, reminding that Americans elected Trump as their head of state, not Musk, and questioning who really holds the reins of government in the White House.

The closure of USAID has hit several non-governmental organizations (NGOs) that are beneficiaries of USAID. One of them is the Platform for Youth and Community Development in Zimbabwe. This NGO works in the field of children and youth education and prevention of early marriage.

“Without help from USAID, we would not be able to empower communities or send activists to places that need a helping hand,” said Claris Madhuku, director of the NGO.

USAID has a program, the President's Emergency Plan for AIDS Relief (PEPFAR). So far, PEPFAR has been supported by both Democrats and Republicans. Over 20 years, PEPFAR has saved the lives of 25 million people worldwide, mostly in African countries. Its programs include HIV/AIDS education and the provision of antiretroviral drugs.

South African President Cyril Rhamaposa said he would like to talk to Trump. In addition to bilateral matters, he also wants to discuss the importance of USAID's existence and meaning for the lives of his country's citizens. Based on USAID data, at least 30 countries' programs are threatened by the organization's closure. (AP/REUTERS)