Billionaire Elon Musk, tasked by President Donald Trump with leading efforts to reduce federal government spending, announced on February 3 that the U.S. is moving forward with plans to shut down the U.S. Agency for International Development (USAID), as per Reuters. Musk, who is also the CEO of Tesla and SpaceX, provided an update on the initiative during a social media talk on X (formerly Twitter), which he also owns.
Trump appointed Musk to lead the newly formed Department of Government Efficiency (DOGE), which is working to streamline government operations. The discussion, which included prominent Republican figures such as former presidential candidate Vivek Ramaswamy and Senators Joni Ernst and Mike Lee, began with Musk’s statement that USAID was “beyond repair” and should be shut down, a position he said was aligned with Trump’s views.
The move comes after the Trump administration removed two top security officials at USAID who had attempted to block DOGE representatives from accessing restricted areas of the agency’s headquarters. USAID, the world’s largest single donor, disbursed $72bn in global assistance in 2023, supporting vital programs including women’s health in conflict zones, HIV/AIDS treatments, energy security, and humanitarian aid.
The announcement has sent shockwaves throughout the international aid community. USAID currently provides over 40% of all humanitarian aid tracked by the United Nations, and its efforts range from health services to disaster relief across the globe.
In addition to shutting down USAID, Musk discussed broader government spending reductions, claiming that the Trump administration could potentially cut $1 trillion from the U.S. deficit next year. However, Musk’s assertion about “professional foreign fraud rings” siphoning U.S. funds through fake digital U.S. citizens lacked supporting evidence.
Musk’s involvement in U.S. government operations has raised concerns. In particular, there is scrutiny over his access to the Treasury system, which handles more than $6 trillion in annual payments. Democratic Senator Peter Welch called for an investigation into Musk’s access to sensitive taxpayer data, describing it as a “gross abuse of power.”
Despite the controversy, Musk has garnered the support of President Trump, who praised Musk’s efforts to cut costs.
“He’s a big cost-cutter,” Trump said in a recent interview. “Sometimes we won’t agree with it, but I think he’s doing a great job.”
As Musk moves forward with restructuring the U.S. government, his team has also assumed control over agencies like the Office of Personnel Management (OPM), which manages federal workforce systems. Reports indicate that Musk’s team has locked out career civil servants from accessing crucial personnel data, further escalating concerns about the growing influence of Musk’s allies within the government.
Impact on USAID Programs in Uzbekistan
The shutting down of USAID’s activities could have significant repercussions for Uzbekistan, where the agency has played an instrumental role in numerous development initiatives.
For instance, in September 2024, USAID added $6.1mn in new funding to its Development Objective Grant Agreement (DOAG) with the Ministry of Preschool and School Education, raising the total amount invested to over $47mn. This funding was aimed at bolstering ongoing programs that support improving foundational skills for primary school students through inclusive education and equipping youth in grades 8–11 with essential entrepreneurship and economic skills needed to secure jobs and participate in the future economy. Since the signing of the DOAG agreement in 2019, USAID’s investments in Uzbekistan’s education sector have focused on enhancing early grade reading and math, improving English language fluency, advancing information and communications technology skills, and developing employability skills.
In October 2024, USAID delivered 131 tons of food aid to Uzbekistan, valued at over $435,000. This shipment includes a nutritious mix of vegetables and legumes intended for distribution in health and social care settings, targeting the country’s most vulnerable households. Since 2010, USAID’s International Food Relief Partnership program has delivered a total of 1,560 tons of food aid to Uzbekistan, amounting to approximately $4.5mn. The distribution of the current shipment will be overseen by the American non-profit organization Resource and Policy Exchange, in partnership with the international charitable foundation Sog’lom Avlod Uchun.
In January 2024, USAID handed over $1.4mn worth of modern energy sector management equipment and software to the Coordinating Dispatch Center (CDC) Energia in Tashkent. Additionally, in January, USAID, in partnership with the Samarkand Sub-commission on Combating Trafficking in Persons and the non-governmental organization Istiqlol Avlodi, opened the second Information and Consultation Center for Migrants and Families of Migrants.
The freeze on U.S. foreign aid, which is part of Trump’s “America First” policy, has raised alarm in many countries that rely on such aid. As aid organizations grapple with the uncertainty, millions of people could face disruption in life-saving services.
