Elon Musk targets the closure of USAid; Trump mulls merging it into US State Dept
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People protest outside the USAid building in Washington, against the move to shut down the agency on Feb 3.
PHOTO: REUTERS
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WASHINGTON - The Trump administration on Feb 3 locked US Agency for International Development workers out of their headquarters in downtown Washington as it moved to shutter the agency, prompting two Democratic senators to vow to block confirmations of State Department nominees.
The lockout added to the chaos that has consumed the agency, which distributes billions of dollars of humanitarian aid around the world, since Trump ordered a freeze on most US foreign aid as soon as taking office on Jan 20.
USAid has also been targeted for closure by billionaire Elon Musk, who has been tasked by the president with downsizing the federal government. On Feb 3, staff received an internal email saying the agency’s main office was going to be shut.
A senior White House official, speaking on condition of anonymity, said Mr Trump was considering merging USAid into the State Department and had “entrusted Elon to oversee the efficiency of this agency.”
He added that there were discussions about sending a notification to US Congress to inform lawmakers of the administration’s plans.
A group of Democratic lawmakers, cheered by dozens of furloughed agency employees and contractors, held a protest in front of the USAid headquarters.
“We don’t have a fourth branch of government called Elon Musk,” said US Representative Jamie Raskin, speaking outside the headquarters.
Senators Brian Schatz and Chris Van Hollen said they would block confirmation of Trump’s nominees for State Department positions under rules that allow them to hold up nominations even if the Republican majority of the chamber want them to move forward.
“We have control over the calendar for nominees,” said Mr Van Hollen. “We will do everything we can to block State Department nominees from going forward until this illegal action is reversed.”
Representative Jamie Raskin, a Democrat from Maryland, speaks outside the USAid headquarters in Washington, on Feb 3.
PHOTO: BLOOMBERG
‘Against the law’
Hundreds of USAid programmes covering billions of dollars worth of lifesaving aid across the globe came to a grinding halt after Mr Trump on Jan 20 ordered a freeze of most US foreign aid, saying he wanted to ensure it is aligned with his “America First” policy.
If USAid were put under the State Department, it would likely have dramatic consequences for the distribution of aid from the United States, the world’s largest single donor.
Mr Musk has been increasingly critical of USAid, calling it a left-wing agency unaccountable to the White House. Mr Musk critics say his accusations are often lodged without evidence and may be ideologically driven.
The rush of events has underlined Mr Musk’s powerful role in setting Mr Trump’s agenda. Last week, Mr Musk’s team at the Department of Government Efficiency (Doge) gained access to the most sensitive payment systems at Treasury
At USAid, two senior security staff were put on leave after refusing to provide classified documents to Doge employees on site over the weekend.
“What’s happening to USAid is against the law,” Mr Schatz told Reuters outside the agency headquarters. “It’s flatly illegal, and it is dangerous to Americans at home and abroad.”
Some USAid staff waved signs as the lawmakers spoke, including one that read: “USAid saves lives.”
Democrats have argued that eliminating USAid’s independence requires an act of Congress. Mr Trump told reporters on Feb 3 that he did not believe that was necessary.
“I love the concept (of USAid), but they turned out to be radical left lunatics,” Mr Trump said.
Security personnel seen at the USAid building, which is closed to employees in Washington, on Feb 3.
PHOTO: REUTERS
Rubio becomes acting chief
US Secretary of State Marco Rubio told reporters in San Salvador that he was now the acting head of USAid, calling the agency “completely unresponsive” and accusing the staff there of being “unwilling to answer simple questions” about programmes.
“If you go to mission after mission and embassy after embassy around the world, you will often find that in many cases, USAid is involved in programmes that run counter to what we’re trying to do in our national strategy with that country or with that region. That cannot continue,” Mr Rubio said.
He informed Congress in a letter of the looming reorganization of the agency, saying some parts of USAID might be absorbed by the State Department and the remainder may be abolished.
In fiscal year 2023, the United States disbursed US$72 billion (S$98 billion) of aid worldwide on everything from women’s health in conflict zones to access to clean water, HIV/Aids treatments, energy security and anti-corruption work. It provided 42 per cent of all humanitarian aid tracked by the United Nations in 2024.
And yet it is less than 1 per cent of its total budget.
The State Department issued worldwide stop-work directives after Trump’s freeze order, with the exception of emergency food assistance. Experts warned that the move risks killing people.
Dozens of USAid career staff have been put on leave. On Feb 3, USAid employees were told that their headquarters in downtown Washington had been shut for the day and they should telework, according to an internal email to staff seen by Reuters.
Three sources familiar with the matter told Reuters that USAid personal services contractors, who carry out the bulk of the work in the agency’s humanitarian bureau, have also been locked out of their government accounts.
“Without PSCs, there is no longer functionally a Bureau for Humanitarian Assistance in USAid. The waivers from Secretary of State Rubio for emergency food and other urgent assistance are a smokescreen and farce if there is no one to make the awards happen,” a USAid official said. REUTERS