Elon Musk, tasked by the Trump administration to downsize the federal government, is playing a central role in efforts to close the U.S. Agency for International Development (USAID). Musk has been assigned to oversee the agency’s efficiency, and a senior White House official revealed that President Trump is considering merging USAID into the State Department.
On Tuesday, the Trump administration extended its lockout of USAID workers for a second day, after a chaotic Monday that saw the agency, responsible for distributing billions in humanitarian aid globally, effectively shut down. This move comes after Trump ordered a freeze on most U.S. foreign aid just hours after taking office on January 20.
The situation has drawn sharp criticism from Democratic senators, who are now vowing to block the confirmations of State Department nominees in protest.
Democrats Vow Retaliation
A group of Democratic lawmakers, cheered by dozens of furloughed agency employees and contractors, held a protest in front of the USAID headquarters, which was shut to the employees on Monday, according to an internal email seen by Reuters.
Another internal email seen by Reuters went out late on Monday, telling employees at the agency’s headquarters and a second site in Washington to work remotely again on Tuesday, adding to concerns voiced by staff members and lawmakers.
“We don’t have a fourth branch of government called Elon Musk,” said U.S. Representative Jamie Raskin, speaking outside the building.
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 Van Hollen. “We will do everything we can to block State Department nominees from going forward until this illegal action is reversed.”
‘Against The Law’
Hundreds of USAID programs covering billions of dollars worth of lifesaving aid across the globe came to a grinding halt after Trump on Jan. 20 ordered a freeze of most U.S. 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.
Musk has been increasingly critical of USAID, calling it a left-wing agency unaccountable to the White House. Musk critics say his accusations are often lodged without evidence and may be ideologically driven.
The rush of events has underlined Musk’s powerful role in setting Trump’s agenda. Last week, Musk’s team at the Department of Government Efficiency gained access to the most sensitive payment systems at Treasury and, as Reuters reported, locked some employees out of their agency’s computers.
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,” 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. Trump told reporters on Monday that he did not believe that was necessary.
“I love the concept (of USAID), but they turned out to be radical left lunatics,” Trump said.
Rubio: Acting USAID Head
U.S. 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 programs.
“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 programs that run counter to what we’re trying to do in our national strategy with that country or with that region. That cannot continue,” 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.
Senator Jeanne Shaheen, a Democrat, said she found Rubio’s notification “wholly insufficient on the law and devoid of any rationale for the drastic, abrupt action the administration has taken, with no prior notice to Congress.”
Billions Disbursed
In fiscal year 2023, the United States disbursed, partly via USAID, $72 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% of all humanitarian aid tracked by the United Nations in 2024.
And yet it is less than 1% 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.
Since then, dozens of USAID career staff have been put on leave. 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.
(With inputs from Reuters)
