Johannesburg, South Africa – President Donald Trump and billionaire entrepreneur Elon Musk have declared that the United States Agency for International Development (USAID) should be shut down, sparking concerns over the future of American foreign aid.
AfricaHeadline Reports Team
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The announcement follows the freezing of USAID’s funding and the suspension of dozens of its employees, signalling a potential overhaul of the U.S. government’s approach to international development assistance.
Speaking in a live X Spaces discussion, Musk revealed that he had discussed the matter in detail with Trump and that both agreed on the agency’s closure. “We went over it a few times, and he confirmed that he wants to shut USAID down,” Musk stated. The billionaire, who co-hosted the session with Republican Senator Joni Ernst and former presidential candidate Vivek Ramaswamy, accused USAID of being “deeply partisan” and funding “projects that are anti-American.”
The move comes amid controversial actions by the Department of Government Efficiency (DOGE), an oversight body created by Musk to review federal spending. DOGE personnel reportedly attempted to gain physical access to USAID’s headquarters in Washington, DC, and threatened to call law enforcement when blocked.
They later succeeded in accessing internal files, including security systems and classified personnel records. The development has drawn criticism from Democratic lawmakers, who have written to Secretary of State Marco Rubio demanding clarity on who authorised access to the agency’s systems.
Established in 1961 under President John F. Kennedy, USAID distributes billions of dollars annually to support humanitarian aid, economic development, and democratic governance worldwide. Its closure would mark a significant reduction in U.S. foreign aid, impacting vulnerable populations and diminishing Washington’s global influence.
The suspension of funding has already disrupted aid programmes, with more than 60 senior USAID staff placed on leave over allegations of attempting to bypass Trump’s executive order freezing foreign assistance for 90 days. Among those suspended are two top security officials who had refused DOGE personnel access to internal systems.
The dismantling of USAID could also have economic repercussions for American businesses that partner with the agency on international projects. Analysts warn that restructuring could cost billions of dollars, as the responsibility for development programmes would shift to departments lacking USAID’s technical expertise.
Critics argue that the move would create a geopolitical vacuum, with rival powers such as China and Russia stepping in to expand their influence in Africa, Latin America, and Southeast Asia through infrastructure investment and financial aid.
USAID has long been considered a pillar of U.S. diplomacy, operating under the “three Ds” framework—Defence, Diplomacy, and Development. The agency’s dissolution could signify a shift in American foreign policy, prioritising military strength and direct negotiations over fostering relationships through humanitarian assistance.
Trump, who has repeatedly criticised USAID, doubled down on his stance, labelling it “a den of radicals.” The former president has championed an isolationist approach, opposing the allocation of U.S. taxpayer funds to overseas initiatives. The agency’s removal appears to align with his “America First” agenda.
Meanwhile, USAID’s online presence has also been erased, raising further concerns. On Saturday, its official website was taken down and replaced by a page within the State Department’s site, while its X account was also deactivated.
Tensions continue to rise between the administration and Congress, with Democratic senators warning that any attempt to dissolve or merge USAID with the State Department must receive legislative approval. Nonetheless, Trump and Musk appear determined to reshape America’s role in global development.
The decision could have far-reaching consequences, not only for U.S. strategic interests but also for millions of people worldwide who rely on USAID’s assistance for food security, healthcare, and sustainable development projects.