What is USAID, the government agency Musk, Trump aim to shut down?

FILE - Volunteers at the Zanzalima Camp for Internally Displaced People unload 50 kilogram sacks of Wheat flour that were a part of an aid delivery from USAID on Dec. 17, 2021, in Bahir Dar, Ethiopia. (Photo by J. Countess/Getty Images)

The U.S. Agency for International Development is on the cusp of being shut down, according to the Trump administration's billionaire adviser and Tesla CEO Elon Musk – who said President Donald Trump has "agreed" to shutter the agency.

Here’s what to know:

What is USAID?

What we know:

USAID offers assistance to countries recovering from disasters, trying to escape poverty, and engaging in democratic reforms, including war-torn Gaza and West Africa also recovering from years of vicious wars. The U.S. is by far the world’s largest donor of humanitarian aid, with USAID administering billions of dollars in humanitarian, development and security assistance in more than 100 countries. 

Dig deeper:

President John F. Kennedy created the organization at the height of the Cold War to counter Soviet influence. Congress passed the Foreign Assistance Act in 1961, and Kennedy signed that law and an executive order establishing USAID as an independent agency.

The U.S. spends less than 1% of its budget on foreign assistance, a smaller share overall than some other nations. 

Musk: Trump ‘agreed we should shut it down’

What we know:

Musk held a live session on X Spaces early on Monday and said that he spoke in detail about USAID with the president. "He agreed we should shut it down," Musk said.

"It became apparent that it's not an apple with a worm in it," Musk said. "What we have is just a ball of worms. You’ve got to basically get rid of the whole thing. It’s beyond repair." "We're shutting it down."

His comments came after the administration placed two top security chiefs at USAID on leave after they refused to turn over classified material in restricted areas to Musk's government-inspection teams, a current and a former U.S. official told The Associated Press on Sunday. Members of Musk's Department of Government Efficiency, known as DOGE, eventually did gain access Saturday to the aid agency's classified information, which includes intelligence reports, the former official said.

Musk formed DOGE in cooperation with the Trump administration with the stated goal of finding ways to fire federal workers, cut programs and slash federal regulations.

The backstory:

USAID, whose website vanished on Saturday without explanation, has been one of the federal agencies most targeted by the Trump administration in an escalating crackdown on the federal government and many of its programs.

"It’s been run by a bunch of radical lunatics. And we’re getting them out," Trump said to reporters about USAID on Sunday night.

The Trump administration and Secretary of State Marco Rubio have imposed an unprecedented freeze on foreign assistance that has already shut down much of USAID’s humanitarian, development and security programs worldwide — compelling thousands of layoffs by aid organizations — and ordered furloughs and leaves that have gutted the agency’s leadership and staff in Washington.

Dig deeper:

Republicans and Democrats have long fought over the agency, arguing whether humanitarian and development aid protects the U.S. by helping stabilize partner countries and economies or is a waste of money. Republicans typically push for more control of USAID’s policy and funds. Democrats typically build USAID autonomy and authority.

The other side:

Democratic Sen. Elizabeth Warren said in a post on Sunday that Trump was allowing Musk to access people's personal information and shut down government funding.

"We must do everything in our power to push back and protect people from harm," the Massachusetts senator said, without giving details.

The Source: This story was reported using information published by Elon Musk on X regarding USAID, as well as reporting from the Associated Press. It was reported from Cincinnati, and the AP contributed.

U.S.PoliticsDonald J. TrumpElon MuskExplainersWorldNewsWorldNews