Trump Administration Moves to Dismantle USAID, Freezing Funding and Closing Headquarters

The Trump administration, with the support of billionaire Elon Musk, has taken steps to dismantle the U.S. Agency for International Development (USAID), closing its headquarters and barring staff from entering on Monday, following Trump's order to freeze most U.S. foreign aid. The agency distributes billions of dollars in humanitarian aid worldwide.

On Monday, the Trump administration closed access to USAID workers at its headquarters in downtown Washington DC, as it moved to shut down the agency, prompting two Democratic senators to vow to block State Department nominee confirmations in protest.

The closure added to the chaos surrounding the agency, which distributes billions of dollars in humanitarian aid around the world, since Trump ordered a freeze on most U.S. foreign aid hours after taking office on January 20.

USAID has also been targeted for closure by billionaire Elon Musk, who has been appointed by the president to reduce the size of the federal government. A senior White House official, speaking on condition of anonymity, said Trump was considering merging USAID with the State Department and had "entrusted Elon to oversee the efficiency of this agency."

A group of Democratic lawmakers, supported by dozens of furloughed agency employees and contractors, held a protest outside USAID headquarters, which was closed to employees for the day, according to an internal email seen by Reuters.

"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 posts, under rules that allow them to delay nominations even if the Republican-majority chamber wants them to move forward.

"We have control over the schedule for nominations," Van Hollen said. "We will do everything we can to block State Department nominations until this illegal action is reversed."

Hundreds of USAID programs covering billions of dollars in vital aid around the world were abruptly halted after Trump ordered on January 20 to freeze most U.S. foreign aid, saying he wanted to ensure it was aligned with his "America First" policy.

If USAID were absorbed by the State Department, it would likely have dramatic consequences for the distribution of U.S. aid, the world's largest individual donor.

Musk has become increasingly critical of USAID, calling it a left-leaning agency with no accountability to the White House. Musk's critics say his accusations are often made without evidence and may be ideologically driven.

The swiftness of the events underscores the powerful role Musk is playing in shaping Trump's agenda. Last week, Musk's team at the Government Efficiency Department (DOGE) gained access to the Treasury's most sensitive payment systems and, as Reuters reported, prevented some employees from accessing their agency computers.

At USAID, two senior security officials were placed on leave after refusing to hand over classified documents to DOGE employees on site over the weekend.

"What's happening with USAID is against the law," Schatz told Reuters outside the agency's headquarters. "It's absolutely illegal and it's dangerous for Americans at home and abroad."

Some USAID employees waved banners as the lawmakers spoke, including one that read: "USAID saves lives."

Democrats argue 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-wing lunatics," Trump said.

U.S. Secretary of State Marco Rubio, who is now the acting head of USAID, told reporters in San Salvador that he called the agency "completely unresponsive" and accused its staff of being "reluctant to answer simple questions" about programs.

"If you go mission after mission and embassy after embassy around the world, you often find that, in many cases, USAID is involved in programs that are contrary to what we are 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 about the agency's impending reorganization, saying that some parts of USAID could be absorbed by the State Department and the rest could be abolished.

In fiscal year 2023, the United States distributed, in part through USAID, $72 billion in global aid across everything from women's health in conflict zones to access to clean water, HIV/AIDS treatment, energy security, and anti-corruption work. It provided 42% of all humanitarian aid recorded by the United Nations in 2024. However, it is less than 1% of its total budget.

The State Department issued worldwide work stoppage directives, following Trump's freeze order, with the exception of emergency food assistance. Experts warned that the move risked killing people.

Since then, dozens of USAID career employees have been placed on leave. Three sources familiar with the matter told Reuters that USAID's personal services contractors, who carry out most of the work in the agency's humanitarian aid office, have also been blocked from their government accounts.

"Without the PSCs, there is no longer functionally a Bureau of Humanitarian Assistance at USAID. Secretary Rubio's waivers, for emergency food assistance and other urgent aid, are a smoke screen and a sham if there is no one to make the awards happen," said a USAID official.

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