Elon Musk, the billionaire entrepreneur and head of President Donald Trump's initiative to reduce the size of the federal government, has provided an update on the progress of this endeavor.
Musk, who also serves as the CEO of Tesla and SpaceX, discussed the Department of Government Efficiency (DOGE) during a social media conversation on X, another of his business ventures. President Trump has tasked Musk with leading a panel focused on federal cost-cutting.
The discussion, which included former Republican presidential candidate Vivek Ramaswamy and Republican Senators Joni Ernst and Mike Lee, began with Musk stating that efforts are underway to dismantle the United States Agency for International Development (USAID). "It's beyond repair," Musk declared, adding that President Trump concurs with the decision to close the agency.
According to a report by Reuters, most USAID employees were instructed to work remotely and not to report to the agency's headquarters in Washington on Monday. An email to personnel indicated that "further guidance will be forthcoming."
Over the weekend, the Trump administration dismissed two top security officials at USAID after they attempted to prevent DOGE representatives from accessing restricted areas of the building, as reported by Reuters. President Trump later told reporters that USAID has "been run by a bunch of radical lunatics," adding: "We're getting them out, and then we'll make a decision."
As the world's largest single donor, USAID disbursed $72 billion of assistance worldwide in fiscal year 2023. This aid covered a range of initiatives, including women's health in conflict zones, access to clean water, HIV/AIDS treatments, energy security, and anti-corruption work. In 2024, it accounted for 42% of all humanitarian aid tracked by the United Nations.
However, President Trump's "America First" policy, which includes a global freeze on most US foreign aid, is already causing global concern. Programs at risk of elimination include field hospitals in Thai refugee camps, landmine clearance in war zones, and drugs to treat millions suffering from diseases such as HIV.
In the broader context of reducing US expenses and fraud, Musk estimated that the Trump administration could cut $1 trillion from the US deficit next year. He claimed that "professional foreign fraud rings" are stealing vast sums by masquerading as or creating fake digital US citizens. However, Musk did not provide any evidence to support his fraud claim or explain how he arrived at the figure of $1 trillion.
Concerns have been raised about Musk's access to the Treasury system, which disburses more than $6 trillion per year in payments on behalf of federal agencies and contains the personal information of millions of Americans. Democrat Peter Welch, a member of the Senate Finance Committee, has called for explanations as to why Musk has been granted access to the payment system and what Welch described as taxpayers' sensitive data.
Despite these concerns, President Trump praised Musk's cost-cutting efforts, stating, "He's a big cost-cutter. Sometimes we won't agree with it and we'll not go where he wants to go. But I think he's doing a great job."
Since assuming office on January 20, President Trump has embarked on a significant government overhaul, dismissing and sidelining hundreds of civil servants in his initial steps toward downsizing the bureaucracy and installing more loyalists. Musk and his team have been given access to or have taken control of numerous government systems, including the US government human resources agency, the Office of Personnel Management. This swift action to install allies at key agencies underscores the Trump administration's commitment to its cost-cutting and efficiency agenda.
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