Tech billionaire Elon Musk revealed on Monday that he and President Donald Trump were in the process of shutting down the U.S. Agency for International Development (USAID), intensifying their efforts against the federal bureaucracy and challenging Congress’s constitutional power over federal spending. Musk, who heads Trump’s government efficiency initiative, made the announcement during an audio-only appearance on his social media platform, X.
“We’re shutting it down,” Musk declared during the late-night broadcast. He later clarified, “we’re in the process” of shutting down USAID. However, Musk did not explain the legal authority he believes the White House has to dismantle a federal agency without congressional approval or provide details on how quickly this action would take place. He did, however, emphasize that the idea had the “full support of the president,” noting that he had discussed the matter with Trump multiple times.
Musk explained, “With regard to the USAID stuff, I went over [it] with him in detail, and he agreed that we should shut it down. I actually checked with him a few times [and] said, ‘Are you sure?’” To which Trump supposedly responded, “Yes.” Musk’s comments came in the middle of the night, and the White House did not immediately offer a comment on the announcement.
On Sunday, Trump had praised Musk, saying he was “doing a good job” and criticized USAID as “run by a bunch of radical lunatics.” However, Trump did not explicitly state that he intended to shut down the agency, with or without Congress’s approval. According to reports from NBC News, Trump administration officials have discussed placing USAID under the authority of the State Department, a move that Democratic lawmakers and legal experts argue would violate a law passed by Congress to establish the agency.
As of now, Trump has proposed freezing almost all U.S. foreign aid for a 90-day review. Congress allocates money annually for USAID’s foreign assistance and charitable efforts. For the 2023 fiscal year, USAID’s budget was approximately $40 billion, a small portion of the federal discretionary spending, which totals $1.7 trillion.
USAID was created by President John F. Kennedy through an executive order in 1961, following a reorganization of foreign assistance approved by Congress. The agency has historically been involved in providing foreign aid and assisting international development efforts.
Musk’s announcement came after an unusual incident over the weekend. USAID’s director of security and his deputy were placed on administrative leave after attempting to block staff members from Musk’s Department of Government Efficiency (DOGE) from accessing secure USAID systems. The DOGE employees threatened to involve the U.S. Marshals but eventually gained access to the systems, though it remains unclear what data they obtained.
It had already become apparent that the Trump administration, alongside Musk’s team, planned a significant overhaul of USAID, part of a broader agenda targeting multiple federal agencies. As a result, more than 50 career civil servants at USAID were placed on administrative leave the previous Monday. These developments have contributed to a growing atmosphere of fear and confusion across the federal workforce.
Musk and USAID have worked together in the past. In 2022, the agency partnered with SpaceX, one of Musk’s companies, to provide 5,000 Starlink satellite internet terminals to the Ukrainian government after Russia’s invasion. However, Musk’s view of USAID has now changed. He called the agency “beyond repair” and “hopeless,” further adding that it was “not an apple with a worm in it, but we have actually just a ball of worms.”
In a post on X, Musk shared his frustration, writing, “I spent the weekend feeding USAID into the wood chipper. Could’ve gone to some great parties. Did that instead.”
Senator Joni Ernst (R-Iowa), a longtime critic of federal spending, expressed agreement with Musk’s views on the call. It remains uncertain how widely this perspective is shared, even within the Republican-controlled Congress.
One significant challenge to Musk’s plan comes from the 1974 Impoundment Control Act, which restricts the president from withholding funds Congress has allocated. Some of Trump’s aides argue that this law is unconstitutional, setting the stage for a potential legal battle.
Musk’s hour-long appearance on X early Monday marked the first time he spoke publicly since he and a group of aides began proposing drastic changes to various federal agencies the week before. He laid out plans for further changes, including a “wholesale removal of regulations,” stating, “Regulations basically should be default gone. Default gone, not default there, default gone.” He did not clarify whether this stance reflected his personal views or those of others in the administration.
Musk also emphasized that time was of the essence, urging Trump to act quickly. “This is our shot. This is the best hand of cards we’re ever going to have,” Musk said. “Now or never.”
As Musk and Trump continue their push to reduce the size and power of federal agencies like USAID, the implications of their actions will unfold in the coming weeks. Whether they can succeed in dismantling such an agency without congressional approval is still uncertain, but their approach to government reform is one of the most radical in recent memory.
