What is USAID? Why Elon Musk calls it a ‘criminal organization’ and why Donald Trump plans to shut it down? Explained

USAID was established during the height of the Cold War as a way to counter Soviet influence. It was created in 1961 by President John F. Kennedy as the humanitarian face of the US  government.

Elon Musk recently mentioned that former President Donald Trump is in favor of shutting down the US Agency for International Development (USAID). There had already been discussions about the agency’s future after its funding was cut and many employees were put on leave. According to recent reports, US Secretary of State Marco Rubio has been named the interim head of USAID. Taking to his official X account, Musk accused USAID of being “a criminal organisation” without providing any evidence and added “Time for it to die”.

He said, “I had a detailed conversation with the (former) President about USAID, and he agreed that we should shut it down.” He mentioned that he had discussed this issue with Trump multiple times, and Trump confirmed that he wanted to close the agency.

USAID is responsible for distributing billions of dollars in humanitarian aid and development funding worldwide.

Why is Musk against USAID?

Just a few days ago, two senior security officials at USAID were put on administrative leave. Reports indicate that the officials had denied access to DOGE members, who were attempting to audit the agency’s systems. The DOGE team gained access to the files.  Musk said USAID is “beyond repair,” among other attacks he made against the agency created by Congress as an independent body. We don’t have “an apple with a worm in it,” he said. “We have a ball of worms.” “USAID is a ball of worms.”

Last week, some 60 senior USAID officials were sent on leave for allegedly trying to bypass Trump’s executive order of 90 days on pausing foreign aid funding. Another senior official was suspended for attempting to undo this decision due to no evidence of wrongdoing.

What is USAID?

USAID was established during the height of the Cold War as a way to counter Soviet influence. It was created in 1961 by President John F. Kennedy as the humanitarian face of the US  government. Throughout its existence, the agency has provided billions of dollars in aid meant to combat poverty, diseases, famine, and natural disasters all over the world. It also supports nonprofits, independent media, and other social initiatives that try to strengthen democracy and spur development.

Why is USAID Important?

According to officials, USAID is a critical diplomatic tool for the U.S. in keeping its international relations alive. It has a key role in America’s three-pillar national security strategy—Defense, Diplomacy, and Development—which are headed by the Department of Defense, the State Department, and USAID, respectively.

The US 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, according to Live Now Fox.

On January 20, 2025, President Donald Trump signed Executive Order 14169, called “Reevaluating and Realigning United States Foreign Aid.” This order put a 90-day pause on all US foreign aid programs to review whether they are actually effective and beneficial to the country.

The Trump administration argues that USAID’s work is inefficient and does not serve US interests. President Trump has openly criticized the agency, calling it a mess run by “radical lunatics” and saying that his team is working to clean it up.