Musk’s late-night announcement sparks controversy over USAID shutdown
Pranjal Chandra | THE TIMES OF INDIA NEWS SERVICE | Feb 03, 2025, 22:04 IST
( Image credit : AP )
Elon Musk announced plans to shut down USAID, an agency key to U.S. foreign assistance, claiming it is ineffective. He asserted President Trump's full support for the decision. The move has raised legal and political concerns, particularly regarding its impact on international humanitarian efforts.
Elon Musk has once again positioned himself at the center of political controversy, this time by declaring that he and President Donald Trump are in the process of shutting down the U.S. Agency for International Development (USAID). The unexpected statement, made during an audio-only appearance on his social media platform X in the early hours of Monday morning, has left lawmakers, government officials, and international stakeholders questioning the administration’s authority and motives.
USAID, a key agency responsible for managing U.S. foreign assistance, has played a significant role in humanitarian efforts worldwide since its creation by President John F. Kennedy in 1961. With an annual budget of approximately $40 billion, the agency supports international development projects ranging from disaster relief to economic growth initiatives. However, Musk, who leads the Trump administration’s government efficiency initiative, described USAID as irredeemable and ineffective.
“We’re shutting it down,” Musk said definitively, before adding, “We’re in the process.” He asserted that the decision had “the full support of the president” and claimed to have discussed the matter extensively with Trump. According to Musk, Trump reaffirmed his position multiple times, leaving no doubt about his intent to dismantle the agency.
Despite Musk’s strong stance, it remains unclear what legal mechanisms the administration plans to use to dissolve a government agency funded by congressional appropriations. The U.S. Constitution grants Congress the power to allocate federal funds, and the 1974 Impoundment Control Act prohibits the president from withholding spending without legislative approval. While some Trump allies argue that the law is unconstitutional, the move to eliminate USAID could ignite legal battles over executive authority and congressional oversight.
The White House has yet to issue an official statement regarding Musk’s comments. However, Trump himself weighed in on the matter over the weekend, criticizing USAID as an organization “run by a bunch of radical lunatics.” While he stopped short of explicitly confirming its closure, his remarks signaled strong disapproval of the agency’s operations.
The announcement follows a series of dramatic developments within USAID, further fueling speculation about its future. Last week, more than 50 career officials were placed on administrative leave, and on Saturday, a confrontation erupted between USAID security personnel and members of Musk’s Department of Government Efficiency (DOGE). Sources revealed that DOGE employees attempted to access USAID’s secure systems, leading to a standoff in which USAID’s director of security and his deputy were also placed on leave. Some DOGE personnel reportedly threatened to call U.S. Marshals before ultimately gaining entry, though it remains unclear what data they accessed.
These actions have raised concerns among lawmakers and federal employees about the administration’s broader strategy for reshaping the government. Trump has already initiated a 90-day freeze on virtually all foreign assistance spending, pending a review. Additionally, some administration officials have discussed transferring USAID’s functions to the State Department—a move that critics argue would violate the agency’s founding legislation.
Musk’s comments on X suggested an even broader vision for regulatory overhaul. “Regulations basically should be default gone. Default gone, not default there, default gone,” he said, emphasizing a radical approach to government reform. His remarks suggest that USAID may be just the first of many federal agencies targeted for dismantling or restructuring.
Senator Joni Ernst, a Republican from Iowa known for her criticism of federal spending, joined Musk on the call and expressed agreement with his assessment of USAID. However, the extent of congressional support for the agency’s closure remains uncertain. While Republicans hold a majority in the House, any major restructuring of USAID would likely face opposition from both parties in the Senate.
The potential fallout from the move extends beyond domestic politics. USAID has long been a pillar of American foreign policy, providing aid to allies and stabilizing conflict-prone regions. Critics warn that shutting down the agency could weaken U.S. influence abroad and create a vacuum that adversaries such as China and Russia may seek to fill through their own foreign aid initiatives.
Musk, however, dismissed these concerns, portraying the effort to dismantle USAID as a necessary step toward government efficiency. “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 moves forward with its plans, the battle over USAID’s fate is likely to intensify, setting the stage for legal challenges, political debates, and potential disruptions to America’s global humanitarian efforts.
USAID, a key agency responsible for managing U.S. foreign assistance, has played a significant role in humanitarian efforts worldwide since its creation by President John F. Kennedy in 1961. With an annual budget of approximately $40 billion, the agency supports international development projects ranging from disaster relief to economic growth initiatives. However, Musk, who leads the Trump administration’s government efficiency initiative, described USAID as irredeemable and ineffective.
“We’re shutting it down,” Musk said definitively, before adding, “We’re in the process.” He asserted that the decision had “the full support of the president” and claimed to have discussed the matter extensively with Trump. According to Musk, Trump reaffirmed his position multiple times, leaving no doubt about his intent to dismantle the agency.
Despite Musk’s strong stance, it remains unclear what legal mechanisms the administration plans to use to dissolve a government agency funded by congressional appropriations. The U.S. Constitution grants Congress the power to allocate federal funds, and the 1974 Impoundment Control Act prohibits the president from withholding spending without legislative approval. While some Trump allies argue that the law is unconstitutional, the move to eliminate USAID could ignite legal battles over executive authority and congressional oversight.
The White House has yet to issue an official statement regarding Musk’s comments. However, Trump himself weighed in on the matter over the weekend, criticizing USAID as an organization “run by a bunch of radical lunatics.” While he stopped short of explicitly confirming its closure, his remarks signaled strong disapproval of the agency’s operations.
The announcement follows a series of dramatic developments within USAID, further fueling speculation about its future. Last week, more than 50 career officials were placed on administrative leave, and on Saturday, a confrontation erupted between USAID security personnel and members of Musk’s Department of Government Efficiency (DOGE). Sources revealed that DOGE employees attempted to access USAID’s secure systems, leading to a standoff in which USAID’s director of security and his deputy were also placed on leave. Some DOGE personnel reportedly threatened to call U.S. Marshals before ultimately gaining entry, though it remains unclear what data they accessed.
These actions have raised concerns among lawmakers and federal employees about the administration’s broader strategy for reshaping the government. Trump has already initiated a 90-day freeze on virtually all foreign assistance spending, pending a review. Additionally, some administration officials have discussed transferring USAID’s functions to the State Department—a move that critics argue would violate the agency’s founding legislation.
Musk’s comments on X suggested an even broader vision for regulatory overhaul. “Regulations basically should be default gone. Default gone, not default there, default gone,” he said, emphasizing a radical approach to government reform. His remarks suggest that USAID may be just the first of many federal agencies targeted for dismantling or restructuring.
Senator Joni Ernst, a Republican from Iowa known for her criticism of federal spending, joined Musk on the call and expressed agreement with his assessment of USAID. However, the extent of congressional support for the agency’s closure remains uncertain. While Republicans hold a majority in the House, any major restructuring of USAID would likely face opposition from both parties in the Senate.
The potential fallout from the move extends beyond domestic politics. USAID has long been a pillar of American foreign policy, providing aid to allies and stabilizing conflict-prone regions. Critics warn that shutting down the agency could weaken U.S. influence abroad and create a vacuum that adversaries such as China and Russia may seek to fill through their own foreign aid initiatives.
Musk, however, dismissed these concerns, portraying the effort to dismantle USAID as a necessary step toward government efficiency. “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 moves forward with its plans, the battle over USAID’s fate is likely to intensify, setting the stage for legal challenges, political debates, and potential disruptions to America’s global humanitarian efforts.