In a late-night announcement that sent shockwaves through Washington, tech billionaire Elon Musk revealed that he and President Donald Trump are pushing forward with plans to dismantle the U.S. Agency for International Development (USAID). The move, which defies Congress’s constitutional authority over federal spending, marks a major escalation in the Trump administration’s ongoing battle against the federal bureaucracy.
Musk, who heads Trump’s government efficiency initiative, made the explosive declaration during an audio-only appearance on his social media platform, X, in the early hours of Monday morning.
“We’re shutting it down,” Musk declared, later adding, “We’re in the process of shutting down USAID.” The announcement left many questioning the legal basis for such a move and how quickly the administration plans to act.
‘We Should Shut It Down’
Musk claimed the plan has “the full support of the president,” stating that he had discussed the matter with Trump multiple times. “I went over [it] with him in detail, and he agreed that we should shut it down,” Musk said. “I actually checked with him a few times [and] said, ‘Are you sure?’ He said, ‘Yes.’”
The White House remained silent on Musk’s announcement, but Trump had previously praised Musk’s efforts, calling him “a good job” and lambasting USAID as “run by a bunch of radical lunatics.” However, Trump stopped short of explicitly endorsing the agency’s shutdown without congressional approval.
The potential dismantling of USAID comes amid a broader push by the Trump administration to consolidate power and streamline federal operations.
Reports suggest that officials have considered placing USAID under the State Department’s authority—a move that critics argue would violate federal law.
Trump Frozen Foreign Assistance
Meanwhile, Trump has frozen nearly all U.S. foreign assistance pending a 90-day review, further complicating USAID’s future.
USAID, which was established by President John F. Kennedy in 1961, plays a critical role in distributing foreign aid and supporting international charities.
But Musk dismissed USAID as “beyond repair” and “hopeless,” likening it to “a ball of worms” rather than “an apple with a worm in it.”
The announcement followed a bizarre incident over the weekend, in which USAID’s director of security and his deputy were placed on administrative leave after attempting to block Musk’s Department of Government Efficiency (DOGE) employees from accessing secure systems.
According to sources, DOGE staff threatened to call U.S. Marshals to gain access, raising questions about what information they obtained.
The turmoil at USAID is part of a broader shakeup across federal agencies, where fear and chaos are rampant. Trump administration placed more than 50 career civil servants at USAID on administrative leave, signaling the administration’s aggressive approach to restructuring.
Musk Against USAID
Musk’s crusade against USAID is particularly striking given the agency’s past collaboration with SpaceX, one of his companies. In 2022, USAID partnered with SpaceX to provide 5,000 Starlink satellite internet terminals to Ukraine following Russia’s invasion. Yet, Musk now seems determined to dismantle the agency, even joking on X that he “spent the weekend feeding USAID into the wood chipper.”
The announcement has sparked mixed reactions, even among Republicans.
Sen. Joni Ernst (R-Iowa), a vocal critic of federal spending, joined Musk on the call and backed his assessment.
However, it’s unclear how much support the move has within the GOP-controlled Congress, especially given the legal hurdles. The 1974 Impoundment Control Act prohibits the president from withholding funds approved by Congress, setting the stage for a potential court battle.
Musk’s late-night appearance on X was his first public statement since launching a sweeping overhaul of federal agencies last week.
He hinted at even more radical changes, including the “wholesale removal of regulations.”
USAID Hangs In The Balance
“Regulations basically should be default gone. Default gone, not default there, default gone,” he said, though it’s unclear whether he was speaking for himself or the administration.
With time running out before the election, Musk urged swift action. “This is our shot. This is the best hand of cards we’re ever going to have,” he said. “Now or never.”
As the Trump administration and Musk continue their aggressive push to reshape the federal government, the fate of USAID hangs in the balance—and the stakes have never been higher.
About The Author
