The United States Agency for International Development (USAID) is set to be dismantled following a review by President Donald Trump and Elon Musk’s Department of Government Efficiency (DOGE).
The administration has determined that the agency’s foreign aid expenditures do not align with core U.S. priorities, such as infrastructure development and education, and is moving to roll USAID’s responsibilities into the State Department.
“You’ve got to basically get rid of the whole thing. It’s beyond repair,” Musk said on Monday. “We’re shutting it down.”
ELON: Shutting down USAID done with full support of President Trump:
“You’ve just got to basically get rid of the whole thing. It’s beyond repair. So really, none of this could be done without full support of the President.”
“I went over it with him, you know, in detail. And… pic.twitter.com/1puoUFulEc [1]
— Western Lensman (@WesternLensman) February 3, 2025 [2]
Shortly after taking office, President Trump and Secretary of State Marco Rubio implemented a 90-day freeze on most foreign aid spending to review how USAID’s $30 billion budget for 2025 was being allocated.
On Monday, Rubio announced that he would serve as acting director of USAID as the administration finalizes plans for the agency’s dissolution.
Secretary of State Marco Rubio just absolutely RIPPED the deep state slush fund known as USAID:
“I am the acting director of USAID.”
“My frustrations with USAID goes back to my time in Congress. It’s a completely unresponsive agency, it’s supposed to respond to policy… pic.twitter.com/xKO8fmTYwS [3]
— Charlie Kirk (@charliekirk11) February 3, 2025 [4]
While the administration has long expressed concerns over government waste, recent revelations about USAID’s spending have added fuel to the push for reforms.
Some lawmakers argue that the agency has prioritized diversity, equity, and inclusion (DEI) initiatives over traditional diplomatic and developmental efforts.
A review of USAID funding has revealed a number of controversial projects that received millions in taxpayer dollars, including:
- HIV Research Focused on Transgender Populations: The Wits Health Consortium, a South African research group, received $30 million from USAID since 2018 to study HIV transmission among sex workers and transgender individuals. An additional $8 million had been allocated but may be rescinded due to Trump’s foreign aid review.
- Funding to the Wuhan Institute of Virology: The White Coat Waste Project, an anti-animal experimentation watchdog group, uncovered that USAID had awarded $38 million in grants that ultimately ended up at the Wuhan Institute of Virology—the lab at the center of COVID-19 origin debates.
- LGBTQ Initiatives in Serbia: A Serbian pro-LGBTQ group, Grupa Izadji (translated as “Group Come Out”), was awarded $1.5 million by the Biden administration to promote workplace inclusion for LGBTQ individuals in Serbia. The group had been set to receive funding through 2025, but Trump’s foreign aid freeze has halted payments.
- Electric Vehicle Investments in Vietnam: A USAID initiative launched under the Biden administration allocated $2.5 million for electric vehicle infrastructure in Vietnam. To date, only one battery charging station has been built, saving an estimated 260 gallons of gasoline—roughly the amount used by two semi-trucks on a single tank.
- LGBTQ Healthcare Clinics in India and Vietnam: USAID provided funding to support the establishment of TransCare Clinic in Vietnam, aimed at expanding transgender healthcare services. The agency also helped produce a documentary highlighting efforts to support India’s first transgender healthcare facility.
- LGBTQ Policy Expansion: In 2023, USAID formalized an agency-wide LGBTQI+ policy to promote protections for LGBTQ individuals worldwide, including efforts to combat discrimination and criminalization.
Beyond USAID, other taxpayer-funded projects have drawn scrutiny from congressional Republicans who are pushing for broader cuts to foreign aid and government programs.
- Transgender Opera in Colombia: The State Department’s Bureau of Western Hemisphere Affairs approved $25,000 to fund a transgender-themed opera in Colombia. The production also received $22,000 in private funding.
- Transgender Comic Books in Peru: A program funded under former Secretary of State Antony Blinken allocated $32,000 for the production of a transgender-focused comic book series in Peru. Lawmakers have described the content as “reasonably risqué.”
- Promoting Atheism in Nepal: Rep. Brian Mast (R-FL) has highlighted a $500,000 taxpayer-funded initiative to promote atheism in Nepal, which he argues is an inappropriate use of U.S. foreign aid.
With the decision to absorb USAID into the State Department, the Trump administration is expected to implement further cuts to foreign aid spending.
The move aligns with the president’s long-standing pledge to reduce U.S. involvement in international programs that do not serve core American interests.
While some USAID programs will be reassigned to other departments, Musk and DOGE officials have emphasized that the agency, as it currently operates, will be shut down.
The restructuring signals a broader effort by the administration to curb what it sees as unnecessary government expenditures and to reallocate resources to domestic priorities.