Elon Musk Announces Overhaul of USAID, Plans Integration into State Department

Trump Administration Moves to Restructure Foreign Aid Agency / Reuters

On February 3, in Washington, D.C., outside the headquarters of the United States Agency for International Development (USAID), hundreds of protesters gathered, holding signs that read "Save USAID." The demonstration followed the announcement that USAID, a government agency responsible for providing humanitarian assistance and economic aid to developing countries, would undergo a major restructuring under the Trump administration. The agency’s future has been uncertain since President Donald Trump’s reelection, and now, his administration, led by Elon Musk, who was appointed head of the Government Efficiency Department (DOGE), has initiated an aggressive overhaul.

USAID Headquarters Restricted as Employees Denied Entry

According to the Associated Press, USAID employees received an email instructing them not to report to work. On the morning of February 3, two senior government officials attempted to enter the building but were turned away by security personnel. A yellow tape reading "Authorized Access Only" was placed across the headquarters entrance, signaling restricted access.

Musk has been vocal about his disdain for USAID, calling it a "criminal organization" and "a stronghold of radical leftist Marxists" on his social media platform, X. In his statements, he declared that "it's time for USAID to disappear," reinforcing his commitment to eliminating what he perceives as a wasteful agency.

Protests Erupt as Government Officials Weigh In

Outside the USAID headquarters, over 100 employees and supporters gathered to protest the shutdown, with some holding signs that read "Democracy is Dead." Congressman Jamie Raskin, a Democrat, joined the demonstration and criticized the decision, stating, "Elon Musk does not control the American people’s money. That authority belongs to the U.S. Congress." His remarks underscored concerns that the Trump administration is acting unilaterally in dismantling foreign aid programs.

However, Trump has expressed full support for Musk’s actions, telling reporters that "some radical lunatics have been running USAID, and we’re going to get rid of them." The president also signed an executive order on January 20, immediately upon taking office, to freeze all U.S. foreign aid spending for 90 days, signaling his intent to reassess the nation's international commitments.

USAID to Be Absorbed into the State Department Under New Leadership

The restructuring plan involves transferring USAID's functions to the U.S. State Department, a move that has been justified as an effort to streamline operations and eliminate inefficiencies. The State Department released a statement emphasizing that USAID "has long deviated from its original mission of responsibly promoting U.S. interests abroad" and that "a significant portion of its funding has not aligned with America’s core national interests." Trump has appointed Secretary of State Marco Rubio as acting head of USAID to oversee the transition.

During a diplomatic visit to El Salvador, Rubio spoke to reporters about the restructuring, criticizing USAID as "completely uncooperative" and insisting that "it must operate in accordance with U.S. national interests." However, he clarified that the reorganization would not completely dismantle USAID’s programs but would place them under the direct oversight of the State Department.

A senior White House official confirmed to Reuters that discussions are ongoing about significantly reducing the number of USAID employees and integrating them into the State Department. The official added that Trump has tasked Musk with overseeing the agency’s efficiency and ensuring that taxpayer dollars are not misused.

USAID’s Legacy and Future Under the Trump Administration

Founded in 1961, USAID has played a crucial role in international development, working to alleviate poverty, promote democracy, and support health, education, and environmental programs worldwide. In the 2023 fiscal year alone, the agency allocated over $40 billion in aid to 130 countries. Its dissolution or restructuring marks a significant shift in U.S. foreign aid policy, reflecting the Trump administration's broader agenda of reducing America’s financial commitments abroad.

While supporters of the restructuring argue that USAID has become bloated and ineffective, critics warn that dissolving or weakening the agency could undermine America’s global influence and humanitarian commitments. As the restructuring unfolds, the fate of thousands of USAID employees and the future of U.S. foreign aid remain uncertain under the Trump-Musk leadership.

The coming weeks will reveal how aggressively the administration implements these changes and whether congressional opposition can slow or block the efforts to overhaul the agency.