Elon Musk, head of Trump's government efficiency initiative, announced late Monday night that he and President Trump are shutting down the U.S. Agency for International Development (USAID), citing its inefficiency and dysfunction. Musk made the announcement during an audio-only broadcast on his social media platform, X. He claimed to have full support from the President and said the move was a 'best shot' to reshape government. This decision has sparked controversy and legal concerns, as it potentially violates the constitutional power of Congress to allocate funds.
Tech billionaire Elon Musk declared on Monday that he and President Donald Trump were in the process of shutting down the United States Agency for International Development ( USAID ), escalating their offensive against the federal bureaucracy and challenging the constitutional authority of Congress to dictate how funds are allocated. Musk, who heads Trump's government efficiency initiative, made the announcement late at night during an audio-only broadcast on his social media platform, X.
'We're shutting it down,' he asserted. At another point, he stated that 'we're in the process' of 'shutting down USAID.' Musk did not elaborate on what legal justification he believed the White House possessed to dissolve a federal agency without congressional approval, nor did he specify the timeline for the administration's actions. He claimed the idea had 'the full support of the president' and that he had engaged in multiple conversations with Trump regarding the matter. 'With regard to the USAID stuff, I went over with him in detail, and he agreed that we should shut it down,' Musk explained. 'I actually checked with him a few times,' he said, adding, 'Are you sure?' To which, Musk stated, Trump responded, 'Yes.' The White House had not issued a statement in response to Musk's announcement early Monday morning. Trump, on Sunday, commended Musk, stating that 'he's doing a good job,' while criticizing USAID as 'run by a bunch of radical lunatics.' However, Trump stopped short of explicitly stating his intention to shut down the agency, with or without congressional consent. Trump administration officials have reportedly discussed placing USAID under the jurisdiction of the State Department, according to over a dozen current and former officials and sources privy to these discussions, as reported by NBC News. This move, however, has been met with opposition from Democratic lawmakers and legal experts who argue that it would violate a law enacted by Congress establishing the agency. Trump has announced a 90-day review of virtually all U.S. foreign assistance, effectively freezing it pending the outcome. Congress annually allocates funds for USAID, primarily for foreign aid and international charities. Its budget for the 2023 fiscal year was approximately $40 billion, according to a Congressional Research Service report last month, representing a minuscule portion of the overall federal discretionary spending of $1.7 trillion. President John F. Kennedy established USAID through an executive order in 1961 following Congress's passage of a foreign assistance reorganization. Musk's announcement followed an unusual incident on Saturday where USAID's director of security and his deputy were placed on administrative leave after they attempted to prevent employees from Musk's Department of Government Efficiency (DOGE) from accessing secure USAID systems, according to five sources who spoke to NBC News.The DOGE employees reportedly threatened to call the U.S. Marshals, two of the sources claimed. Eventually, the DOGE employees gained access to the secure systems, three sources stated, but the nature and extent of the information they acquired remain unclear. It was already evident last week that the Trump administration and Musk's staff planned a radical restructuring of USAID, one of several agencies facing turmoil and uncertainty within the federal workforce. More than 50 career civil servants at USAID were placed on administrative leave the previous Monday. Musk characterized USAID as 'beyond repair' and 'hopeless,' adding that it was 'not an apple with a worm in it, but we have actually just a ball of worms.' Senator Joni Ernst, a Republican from Iowa and a long-time critic of federal spending, joined Musk on the call, expressing her agreement with his assessment. However, it remains uncertain whether such a view is broadly shared, even within the Republican-controlled Congress.A 1974 federal law known as the Impoundment Control Act stipulates that the president generally cannot withhold funds that Congress has approved. Some Trump aides contend that the law is unconstitutional, foreshadowing a potential legal battle. The hour-long event on X, shortly after midnight ET on Monday, marked Musk's first public address since he and a group of aides began overhauling federal agencies last week. Musk outlined plans for sweeping additional changes, including 'wholesale removal of regulations.' 'Regulations basically should be default gone. Default gone, not default there, default gone,' he stated, although it remained unclear if he was speaking on behalf of himself or representing the administration's stance. Musk also emphasized the urgency for Trump to act. 'This is our shot. This is the best hand of cards we're ever going to have,' he declared. 'Now or never.
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