In a big shake-up of U.S. foreign aid, Elon Musk’s cost-cutting team is finalizing the shutdown of the U.S. Agency for International Development (USAID).
This move will affect thousands of employees and end a major chapter in America’s efforts to help other countries through humanitarian aid, health support, and development projects. The decision, backed by President Donald Trump, is seen as part of their “America First” strategy.
USAID to Be Completely Shut by September
According to former top officials from USAID and other sources, nearly all of the agency’s workers will be fired by September. The entire network of USAID offices overseas will be shut down. Some responsibilities will be taken over by the U.S. State Department, but many employees will lose their jobs.
This action will end the agency’s presence in more than 60 countries, where it has been helping with food, health, education, and emergency programs for decades.
Mass Layoffs Announced for U.S. and Foreign Staff
On Monday, USAID’s human resources team reportedly held a conference call with regional offices. They confirmed that all of the 10,000+ locally hired foreign workers would be let go by August. The agency also plans to fire hundreds of American diplomats and civil servants working abroad.
More than 600 U.S. diplomats who are currently assigned to USAID will be laid off by July. According to a summary of the call, every position at the agency is being cut as part of a full “Reduction in Force” process.
Trump and Musk Back USAID Shutdown
President Trump and Elon Musk, who is leading the Department of Government Efficiency, started the process of shutting down USAID earlier this year. They want to bring all foreign aid under tighter control and shift focus toward domestic priorities.
Trump has accused USAID of being full of waste and corruption, without giving any proof. Musk went further, wrongly calling the agency a “criminal” organization. Critics argue that these claims are baseless and politically motivated.
Impact on Global Aid and Humanitarian Work
The decision to close USAID will likely affect millions of people around the world who rely on U.S. aid. The agency has supported vital programs in war-torn countries like Ukraine, Gaza, and Congo. It has also helped U.S. allies like Jordan and provided health support in poor regions.
More than 5,000 programs have already been stopped, and hundreds of contractors have been fired. Experts worry that ending these services could worsen crises in places that depend on food, medicine, and disaster response from the U.S.
Concerns About Legal and Ethical Issues
Some former officials warned that firing foreign staff may break labor laws in other countries. They say these sudden mass terminations could lead to legal battles or damage America’s reputation abroad.
Workers have been advised to focus on securing their benefits as their jobs are cut. Many are shocked at how fast such a large and respected agency is being shut down.