The United States Agency for International Development (USAID) is, or at least has been, the primary vehicle for U.S. civilian foreign aid since 1961. It has sent billions of dollars in assistance worldwide, tackled poverty, funded disaster relief, and even supported projects related to global health, democracy, and economic development. But now, under Donald Trump’s second administration, the agency is facing an existential threat, with Elon Musk and Marco Rubio playing key roles in what could be an unprecedented restructuring—or complete dissolution—of the organization.
So, how did we get here? What exactly is USAID, and can Trump and Musk really shut it down? Let’s break it all down.
What is USAID?
USAID is an independent agency of the U.S. federal government, but it operates under the foreign policy direction of the State Department. The agency’s mission has traditionally been to provide economic and humanitarian aid to countries in need. Established in 1961 by an executive order from President John F. Kennedy, USAID was meant to consolidate various U.S. foreign aid efforts under one roof.
What Does USAID Do?
USAID’s activities can be categorized into several major areas:
- Disaster relief (such as responding to earthquakes, hurricanes, and famines)
- Global health (including funding vaccination programs and fighting diseases like HIV/AIDS)
- Economic development (supporting trade, infrastructure, and entrepreneurship)
- Democracy promotion (funding elections, human rights initiatives, and independent media)
- Environmental protection (supporting conservation and climate adaptation projects)
With a 2023 budget of $50 billion, USAID has been one of the largest sources of foreign aid in the world.
The Trump-Musk Takeover: What’s Happening?
Here’s where things get interesting. Donald Trump, during his second term, has moved to freeze almost all foreign aid spending, and Elon Musk—who was appointed head of the newly created Department of Government Efficiency (DOGE)—has openly called USAID a “criminal organization” and said it’s “beyond repair.”
Who’s in Charge of USAID Now?
- Marco Rubio, a staunch Trump ally, was recently named Acting Administrator of USAID.
- Elon Musk, while technically not an official USAID executive, has played an outsized role in overseeing its potential dismantling as part of his role in DOGE.
What Have They Done So Far?
- January 2025 – Trump orders a near-total freeze on all foreign aid spending.
- Late January 2025 – The official USAID website is taken down, raising questions about transparency.
- Early February 2025 – Musk and Trump confirm they are working to shut USAID down completely.
- Marco Rubio announces that USAID is being merged into the State Department, though the legality of this move is disputed.
Can Trump and Musk Actually Shut Down USAID?
Legally, this is where things get complicated. USAID was established by the Foreign Assistance Act of 1961, which means its existence is mandated by Congress. While the president can limit or reallocate funding, dissolving the agency entirely would require congressional approval.
Challenges to Shutting Down USAID
- Congressional Oversight: Congress must approve any major changes to USAID’s structure.
- Foreign Assistance Act: USAID’s mandate is built into federal law, meaning eliminating it outright would require legislation.
- Bureaucratic Resistance: USAID has thousands of employees and active international programs—closing it down is not as simple as flipping a switch.
Some legal experts argue that Trump’s administration could starve USAID of funding and fold its responsibilities into the State Department, effectively neutering it without a full legal shutdown. But doing so could lead to legal challenges and congressional pushback—especially from lawmakers who support foreign aid.
Does Elon Musk Even Work for the Government?
Here’s another weird twist. While Musk is not an elected official, he was appointed as the head of the Department of Government Efficiency—an office created by Trump to reduce waste in federal agencies.
This means that while Musk technically works for the government now, his role is more advisory and operational rather than legislative. He can recommend cuts, changes, and restructuring, but he cannot unilaterally shut down an entire federal agency. That requires congressional action or executive orders with legal backing.
However, Musk has been given sweeping access to government operations, which has already led to significant pushback from career officials and lawmakers.
What Happens Next?
1. Legal Battles Looming
Opponents of the shutdown are preparing lawsuits, arguing that Trump and Musk are overstepping their authority. Legal analysts suggest that if Congress pushes back, USAID could be protected, even if it undergoes massive restructuring.
2. Foreign Policy Consequences
Eliminating USAID could have global repercussions, especially in areas reliant on U.S. foreign assistance. Critics warn that it could:
- Weaken U.S. influence abroad, allowing China and Russia to expand their reach.
- Disrupt global health programs, including vaccine distributions.
- Reduce disaster relief efforts, leaving countries vulnerable.
3. What Will Trump and Musk Do?
Trump and Musk seem determined to at least drastically scale back USAID’s operations, even if they cannot completely eliminate it. That could mean:
- Merging it with the State Department (as Rubio has suggested).
- Slashing its budget to a fraction of its current level.
- Privatizing some of its functions, shifting aid delivery to corporations or NGOs.
The Bottom Line
While Trump and Musk cannot completely erase USAID overnight, they can cripple it significantly through budget cuts, leadership changes, and bureaucratic restructuring. Whether or not the agency survives in any recognizable form will depend on Congress, the courts, and political pressure.
Regardless of where you stand on foreign aid, this is one of the most aggressive attempts to reshape a U.S. government agency in modern history. And with Musk in the mix, it’s not just policy—it’s a spectacle.
What happens next? Stay tuned.
Disclaimer:
This article is for informational purposes only and does not constitute legal, financial, or governmental advice. The views and opinions expressed herein are based on available information and should not be interpreted as an endorsement or official statement from any government agency, political figure, or private entity. While efforts have been made to ensure accuracy, policies and developments may change rapidly, and readers are encouraged to consult official sources for the latest updates. Any speculation regarding future actions, legal interpretations, or political outcomes is purely analytical.
