Elon Musk targets closure of US humanitarian aid agency

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People hold placards outside the USAID building, after billionaire Elon Musk, who is heading U.S. President Donald Trump’s drive to shrink the federal government, said work is underway to shut down the U.S. foreign aid agency USAID, in Washington, U.S., February 3, 2025. REUTERS/Kent Nishimura

By Jonathan Landay, Steve Holland and Daphne Psaledakis

WASHINGTON (Reuters) -The Trump administration on Monday locked U.S. Agency for International Development workers out of their headquarters in downtown Washington DC 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 U.S. foreign aid as soon as taking office on Jan. 20.

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USAID has also been targeted for closure by billionaire Elon Musk, who has been tasked by the president with downsizing the federal government. On Monday, 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 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 U.S. 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 U.S. 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 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 BECOMES 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.

The State Department in a statement said it had informed Congress that a review of USAID’s foreign assistance activities was underway “with an eye towards potential reorganization.”

In fiscal year 2023, the United States disbursed $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.

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 Monday, 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.

(Reporting by Steve Holland, Jonathan Landay, Jarrett Renshaw, Humeyra Pamuk, Erin Banco, Daphne Psaledakis and Pete Schroeder; Additional reporting by Patricia Zengerle; Writing by Daphne Psaledakis and James Oliphant; Editing by Humeyra Pamuk, Nia Williams and Rosalba O’Brien)