USA closes the USAID

3 February 10:45

Elon Musk, head of the U.S. Department of Government Effectiveness (DOGE), has announced plans to eliminate the U.S. Agency for International Development (USAID). This was reported by Reuters, according to Komersant ukrainskyi.

“USAID cannot be reformed”

During a conversation on his platform, Musk said that the Trump administration is working to completely eliminate USAID, explaining this by the agency’s inefficiency.

“It’s impossible to fix,”

– Musk said, adding that Trump supports this decision.

According to Reuters, over the weekend, the Trump administration fired two senior USAID officials after they tried to prevent DOGE representatives from accessing restricted areas in the agency’s building.

Reduction of international aid and US government spending

Under Trump’s “America First” policy, the US administration has frozen most foreign aid programs, which has already caused global turmoil. In particular, field hospitals in refugee camps in Thailand, demining programs in war zones, and the supply of medicines for millions of people with HIV are under threat.

Musk, speaking in general about government spending cuts, said that the Trump administration could reduce the US budget deficit by $1 trillion next year. He claims that a significant portion of the budget is lost due to “international fraudulent schemes” that operate under the guise of American citizens in the digital space. However, Musk did not provide any evidence for his claims.

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Musk’s access to government systems raises concerns in the United States

Against the backdrop of these events, concerns are growing about Musk and his team’s access to government financial systems. The New York Times reported that Musk was given the opportunity to manage part of the US Treasury system, which annually processes payments worth more than $6 trillion. We are talking about government payments, including social benefits, tax refunds and other government transactions containing confidential data of millions of Americans.

It is also known that Musk quickly appointed his allies to senior positions in the Office of Personnel Management (OPM). A team consisting of his current and former employees took control of the agency on January 20, the day of Trump’s inauguration.

Democratic Senator Peter Welch, a member of the Senate Finance Committee, demanded an explanation as to why Musk gained access to the government’s payment system, including taxpayers’ personal data.

“This is a blatant abuse of power by an official who was not elected, and it shows that money can buy power in the Trump administration,” Welch said,

– Welch told Reuters.

Trump supports Musk, but retains control

Despite the criticism, Trump has expressed support for Musk. On Sunday, he was asked if he was satisfied with the billionaire’s actions.

“He’s doing a great job. Yes, sometimes we will disagree and not go the way he suggests. But I think he is doing a great job. He is a smart man. Very smart. And he is serious about cutting the government budget,”

– said the US President.

Since taking office, Trump has been actively reorganizing the government, firing and suspending hundreds of civil servants. These measures are the first steps in his strategy to reduce bureaucracy and replace officials with people loyal to the administration.

The role of USAID for the world and Ukraine

After Trump took office, the United States suspended funding for all USAID projects for 90 days.

USAID was the largest donor of humanitarian aid in the world. Thus, in fiscal year 2023, the United States allocated $72 billion for a variety of projects ranging from women’s health care in conflict zones to access to clean water, HIV/AIDS treatment, energy security, and anti-corruption. According to UN estimates, in 2024, USAID provided 42% of all humanitarian aid in the world.

In Ukraine, IDPs, energy, small businesses, the Ministry of Digital Transformation, and independent media are under attack – last year, USAID allocated more than $5 billion to Ukraine.

A number of Ukrainian organizations have suspended their activities. Many local government projects have been suspended. For example, in Mykolaiv, dozens of projects have been put on hold, ranging from energy independence to security projects. Ivona Kostyna, co-founder of Veteran Hub, posted on Facebook that the organization was forced to close the Veterans Support Line and the Hub in Vinnytsia.

The full list of programs and organizations that have lost USAID funding in Ukraine is available here.

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Остафійчук Ярослав
Editor