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Understanding USAID: The Agency Targeted for Shutdown by Musk and Trump


Elon Musk, head of the Department of Government Efficiency under President Donald Trump, announced plans to dismantle the federal agency USAID, the world’s largest foreign aid agency. Trump had already ordered a freeze on most U.S. foreign aid to focus on “America First” policies. USAID provides assistance to countries recovering from disasters or poverty, with a mission to promote democratic values and peace internationally. In fiscal year 2023, USAID disbursed $72 billion for various initiatives, funded by Congress. The agency is separate from the State Department but may be folded into it under Trump’s administration. Critics argue that merging USAID with the State Department could impact aid distribution as USAID operates independently from diplomatic relationships. The agency has a staff of over 10,000 people and received over $44 billion in federal funding in fiscal year 2024. The move to shut down USAID has raised concerns about the future of international aid efforts and foreign policy.

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