Billionaire Elon Musk, leading President Donald Trump's initiative to streamline the federal government, provided an update on Monday, mentioning efforts to close down the U.S. foreign aid agency USAID. In a social media discussion on X, an online platform he owns, Musk, who is also CEO of Tesla and SpaceX, talked about the Department of Government Efficiency (DOGE), a panel for reducing federal costs under Trump's direction.
During the conversation that involved former Republican presidential candidate Vivek Ramaswamy and Republican Senators Joni Ernst and Mike Lee, Musk expressed plans to shut down USAID, stating, "It's beyond repair," emphasizing Trump's agreement with the decision.
Over the weekend, Trump's administration ousted two top security officials at USAID who had obstructed access to restricted areas in the building for Musk's DOGE representatives. USAID, the world's largest single donor, dispersed $72 billion in aid globally in fiscal year 2023, covering a wide range of initiatives from health services to anti-corruption efforts.
Additionally, Musk estimated that the Trump administration could trim $1 trillion from the U.S. deficit the following year by curbing expenses and fraud. However, Musk did not substantiate his claims about foreign fraud rings or explain the basis for the $1 trillion reduction.
Concerns have been raised about Musk's access to Treasury systems that oversee substantial financial transactions involving sensitive data of millions of Americans. Despite criticism from Democrat Peter Welch, Musk has received endorsement from Trump for his cost-cutting efforts within the federal budget.
Furthermore, Musk's team has assumed control or gained access to various government systems, including the U.S. government human resources agency, OPM. Following Trump's recent government restructuring actions, which involved dismissing numerous civil servants, Musk's allies have been strategically placed in key positions within the bureaucracy.