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USAID is "Beyond Repair", Musk Claims He's Working to Shut it Down

Elon Musk's latest outburst has him launching his usual $600 missile straight into USAID (metaphorically), which he declared "beyond repair" and is keen...

Fatimah Misbah Hussain
3 minute read
Musk says shutting down USAID in government cost-cutting drive

Elon Musk's latest outburst has him aiming his usual rhetorical firepower at USAID (metaphorically), which he declared "beyond repair" and is keen upon abolishing it. For Musk, after space travel, electric cars, and media, it just makes sense that he would become a part of cutting government waste and add it to the list. Backed by Trump, Musk’s latest entry has frankly raised eyebrows and had some discussions over this more than a little confusion.

Is it efficient? Or just another episode in the ceaselessly revolving door of the political circus? Billionaire Elon Musk revealed on X about shutting down the United States Agency for International Development. Musk was appointed to lead a federal cost-cutting initiative by U.S. President Donald Trump, where he went on to say USAID is beyond repair and confirmed the closure with Trump.

Musk's Controversial Growing Role:

The USAID, being the largest single donor in the world, spent $72 billion in the year 2023, with regard to humanitarian assistance, health, anti-corruption, energy and security around the world. The U.S. provided 42% of all humanitarian aid tracked by the United Nations in 2024. Although within the framework defined by Trump's "America first" policy, most of the U.S. foreign aid remains frozen, putting programs such as clearing landmines, field hospitals, and HIV/AIDS treatment at risk.

Musk, who also serves as CEO of Tesla and SpaceX, has been given a respectable position in the Trump administration to lead DOGE, a newly created Department of Government Efficiency. His work has raised worries, especially since Reports indicated that Musk’s team received limited access to certain government financial management systems, raising privacy and oversight concerns, which is responsible for processing more than $6 trillion per annum.

Cost-Cutting Scheme and Political Response:

According to Musk, the Trump administration can save $1 trillion from the deficit for the following year through the elimination of waste and fraud. He specifically alleged that weaknesses in current systems may allow improper claims via fraudulent digital identities. However, no evidence was put forth by Musk in support of these allegations. Senator Peter Welch, a Democrat from the Senate Finance Committee, has demanded answers regarding the access granted to Musk over the Treasury system with allegations of the security of taxpayer data.

Welch said, "It's a gross misuse of power by an unelected bureaucrat and it shows money can buy power in the Trump White House," Despite the condemnation coming from the Democrats and the so-called progressives, Trump openly declared his support for Musk as a "big cost-cutter" for having streamlined the government and is not worried, as there will be times when they just don't see eye to eye. Trump said, "He's a big cost-cutter. Sometimes we won't agree with it and we'll not go where he wants to go but I think he's doing a great job. He's a smart guy, very smart and he's very much into cutting the budget of our federal budget.

Musk has been rapidly expanding influence inside the administration. Undoubtedly ever since his vow, Trump has made the most unusual of drastic measures toward putting this government into his own design by firing and sidelining hundreds of bureaucrats and appointing loyalists to strategic positions. The shake-up indicates that U.S. governance is undergoing a radical transformation, with Musk at the center of a controversial operation to take down federal agencies and redefine the parameters of government intervention.

Disclaimer

This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Market data, tax rules, and prices can change after the article date. TECHi and its authors may hold positions in securities or digital assets mentioned. Always conduct your own research and consult a licensed financial, tax, or legal professional before making decisions.

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About the Author

Fatimah Misbah Hussain
Fatimah Misbah HussainTechnology and markets writer

Fatimah Misbah Hussain reports on the money behind AI and chips: Samsung raising foundry prices while losing share, Alphabet's first quarter of AI cash burn and the roughly $10 billion financing stack behind Korea's sovereign AI factory. US sanctions on crypto exchanges and X's new payouts for original posts are also part of her beat.

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