Trump and Musk Move to Shut Down USAID, Sparking Legal Battle with Democrats

By DAYO ADESULU with Agency Report

Washington, D.C. – The Trump administration, with the backing of billionaire Elon Musk, has moved to dismantle the U.S. Agency for International Development (USAID), the federal agency responsible for providing humanitarian aid, funding education, and combating poverty worldwide. The decision has triggered a fierce backlash from congressional Democrats, who have vowed to challenge the move in court.

Agency Shutdown Sparks Controversy

USAID employees were reportedly locked out of the agency’s headquarters in Washington, D.C., following Musk’s announcement that President Donald Trump had agreed to shut it down. More than 600 workers lost access to internal systems overnight, while those still logged in received an email stating that, “at the direction of agency leadership, the headquarters building will be closed to agency personnel on Monday, February 3.”

In addition, USAID’s website and social media accounts were taken offline, further fueling concerns about the abrupt nature of the shutdown.

Trump and Musk Defend the Decision

Speaking to reporters on Monday, Trump defended the closure, saying, “This should have been done a long time ago,” though he admitted that he once supported the agency’s mission during his first term. Asked whether he needed congressional approval to dismantle USAID, Trump responded:

“I don’t know, I don’t think so. Not when it comes to fraud—these people are lunatics. And if fraud is involved, you don’t need an act of Congress.”

Meanwhile, Musk, who has been leading a civilian review of the federal government under Trump’s approval, elaborated on the decision in a live session on X Spaces (formerly Twitter Spaces).

“It became apparent that it’s not just an apple with a worm in it,” Musk said. “What we have is just a ball of worms. You’ve got to basically get rid of the whole thing. It’s beyond repair.”

Security Concerns at USAID

The move has also led to tensions within the federal government. Over the weekend, two senior security officials at USAID were placed on leave after allegedly refusing to provide classified materials to Musk’s government-inspection teams. The situation mirrors an earlier incident at the Treasury Department, where Musk’s Department of Government Efficiency (DOGE) reportedly gained access to sensitive Social Security and Medicare data, prompting the resignation of a senior Treasury official.

A Blow to U.S. Foreign Aid Policy

USAID, established by President John F. Kennedy in 1961, has long been a cornerstone of U.S. foreign policy, countering global adversaries such as China and Russia by providing humanitarian and development assistance. The United States is the largest provider of humanitarian aid worldwide, with its foreign assistance budget making up less than 1% of total federal spending.

Critics argue that dismantling USAID weakens America’s global influence, especially as China expands its Belt and Road Initiative to increase its presence in developing nations.

Democrats Vow Legal Action

Congressional Democrats have condemned the move as an “illegal power grab”, with Senator Chris Van Hollen (D-MD) calling it “a corrupt abuse of power.” On Tuesday, a group of lawmakers attempted to enter USAID headquarters to speak with remaining staff, but were blocked by security officials.

“This is not only a gift to our adversaries but also blatantly illegal,” Van Hollen said. “Trump cannot dismantle USAID by executive order.”

Democrats have promised to file lawsuits and are considering blocking Trump’s State Department nominations in retaliation. However, with Republicans controlling both the House and Senate after last November’s elections, their options for immediate action remain limited.

What’s Next?

🔹 Will legal challenges succeed in reversing USAID’s closure?
🔹 How will the international community react to the U.S. withdrawal from global humanitarian efforts?
🔹 Could Musk’s increasing role in government operations face legal or congressional scrutiny?

This developing story is expected to spark intense legal and political battles in the weeks ahead