Billionaire Elon Musk, who is heading U.S. President Donald Trump's efforts to shrink the federal government, gave an update on the effort early Monday, saying they are working to shut down the U.S. foreign aid agency USAID.
Musk, who is also CEO of Tesla and SpaceX, discussed the Department of Government Efficiency (DOGE) in a Monday social media talk on X, which he also owns. Trump has assigned Musk to lead a federal cost-cutting panel.
The conversation, which included former Republican presidential candidate Vivek Ramaswamy and Republican Senator Joni Ernst and Mike Lee, began with Musk saying they were working to shut down the United States Agency for International Development (USAID).
"It's beyond repair," Musk said, adding that President Trump agrees it should be shut down.
On Sunday Reuters reported the Trump administration removed two top security officials at USAID during the weekend after they tried to stop representatives from billionaire Musk's Department of Government Efficiency (DOGE) from gaining access to restricted parts of the building, three sources said.
He asserted, for example, that "professional foreign fraud rings" are stealing money vast sums by masquerading as or creating fake digital U.S. citizens.
Musk did not offer any evidence to support his fraud claim or explain how he reached the amount of $1 trillion.
The online chat comes amid concerns about Musk's access to the Treasury system, first reported by the New York Times, that sends out more than $6 trillion per year in payments on behalf of federal agencies and contains the personal information of millions of Americans who receive Social Security payments, tax refunds and other monies from the government.
USAID is the world's largest single donor. In fiscal year 2023, the U.S. disbursed $72 billion of assistance 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.
The website of USAID appeared to still be offline on Saturday and some users could not access it on Sunday. USAID has a staff of more than 10,000 people.
Trump has ordered a global freeze on most U.S. foreign aid as part of his "America First" policy which is already sending shockwaves around the world. Field hospitals in Thai refugee camps, landmine clearance in war zones, and drugs to treat millions suffering from diseases such as HIV are among the programs at risk of elimination.
Speaking more broadly about cutting U.S. expenses and fraud, Musk estimated the Trump administration can cut $1 trillion from the U.S. deficit next year.
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