The Trump administration announced a sweeping overhaul of the U.S. Agency for International Development (USAID) on Sunday, placing the majority of its workforce on leave worldwide and terminating at least 1,600 domestic positions. The move signals a dramatic step in President Donald Trump’s long-standing ambition to shrink the federal government, with support from business magnate and cost-cutting advocate Elon Musk.
A Stunning Shakeup at USAID
USAID, established in 1961, has been one of the pillars of U.S. foreign assistance, managing billions in development aid. But Sunday’s decision marks one of the most aggressive cuts in the agency’s history. Officials confirmed that the move affects thousands of employees, with only a skeleton crew left operational.
Some USAID offices were already shutting down operations by late Sunday. Employees in Washington, D.C., were seen leaving the headquarters, many of them in tears. “We dedicated our lives to this mission, and now it’s just gone overnight,” said a former senior USAID officer who was terminated.
The administration defended the decision as a necessary restructuring. “The American taxpayer has been footing the bill for bloated and inefficient foreign aid for decades,” a White House spokesperson said. “We are streamlining operations to ensure only the most effective programs remain.”
Musk’s Influence on the Cuts
Elon Musk’s backing of the decision has added an unexpected layer to the shakeup. The billionaire, known for advocating small government and cost efficiency, reportedly played a role in advising Trump on reducing what he calls “wasteful spending” in the federal budget.
- Musk has publicly criticized USAID in the past, calling for private-sector-led global development initiatives.
- Sources say he advised the administration to focus on technological solutions rather than traditional aid models.
- While not officially part of the government, his influence on policy decisions has been growing, particularly in restructuring agencies.
Musk did not comment directly on the firings, but he posted on social media: “If foreign aid actually worked, we wouldn’t need it forever. Time to rethink how we help the world.”
Global Impact and Reactions
The mass layoffs and leave orders have already triggered strong reactions domestically and internationally. Aid organizations warn that the decision will have devastating effects on crucial humanitarian and development programs across the globe.
“This is catastrophic,” said a United Nations official, speaking on condition of anonymity. “USAID is a key player in disaster relief, poverty reduction, and healthcare initiatives. Without it, millions could suffer.”
Foreign governments that rely on USAID funding were caught off guard. Several African and South Asian nations have begun assessing the potential fallout, as projects ranging from infrastructure development to health services face immediate suspension.
The Numbers Behind the Cuts
The scale of the cuts is unprecedented in USAID’s history. Internal agency reports reveal the following breakdown:
| Category | Number Affected |
|---|---|
| USAID Domestic Employees | 1,600 fired |
| Overseas Staff Placed on Leave | Over 2,500 |
| Offices Shut Down | 12 locations |
| Programs Affected | 89+ |
The Trump administration insists the changes are necessary to reduce inefficiencies, though critics argue that they undermine U.S. global leadership. “This is not cost-cutting; this is sabotage,” said a senior Democratic senator.
What Comes Next?
While it remains unclear if further job losses are imminent, reports indicate that more agencies could see similar restructuring efforts. USAID’s remaining leadership is expected to announce in the coming weeks which programs will be salvaged and which will be permanently shut down.
Meanwhile, labor unions representing federal employees have vowed legal action, arguing that the administration failed to provide adequate notice or justification for such a large-scale dismissal. “This is a reckless move that destroys livelihoods and undermines American interests abroad,” said a USAID employees’ union representative.
As the situation unfolds, attention will be on how Congress, foreign allies, and aid organizations respond to one of the most significant overhauls of the U.S. aid system in decades.
