Billionaire Elon Musk has been tasked with streamlining the federal government, with USAID targeted for closure or absorption into the State Department. A senior White House official confirmed Musk’s role, citing inefficiencies at the agency.
The move triggered protests from Democratic lawmakers and furloughed staff outside USAID headquarters, which was shut down. Employees were instructed to work remotely, heightening concerns over their future. “We don’t have a fourth branch of government called Elon Musk,” said Rep. Jamie Raskin.
Senators Brian Schatz and Chris Van Hollen vowed to block Trump’s State Department nominees until USAID’s independence is restored. “What’s happening is flatly illegal,” Schatz said.
Following Trump’s Jan. 20 freeze on foreign aid, USAID operations worldwide ground to a halt. Critics warn that merging the agency into the State Department could drastically alter U.S. humanitarian assistance.
Musk, a vocal USAID critic, has accused it of left-wing bias. Meanwhile, his team at the Department of Government Efficiency reportedly restricted access to Treasury payment systems. At USAID, two security officials were placed on leave after refusing to share classified documents.
Secretary of State Marco Rubio, now acting USAID head, justified the shake-up, arguing the agency’s work often contradicts U.S. foreign policy. He notified Congress of a potential reorganization or dissolution of USAID.
Democrats insist eliminating USAID requires congressional approval. In 2023, the agency managed $72 billion in aid, including critical humanitarian efforts. Experts warn the freeze could have deadly consequences, as locked-out contractors leave urgent assistance in limbo.
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