10,000 USAID employees are facing an uncertain future after Elon Musk claimed President Trump has agreed to shut down the department.
Musk’s claims come after the Wall Street Journal reported the Trump administration had moved to close the USAID headquarters.
These actions sparked intense speculation about the future of the agency and its over 10,000 employees, many of whom work overseas.
Can President Trump Legally Dissolve USAID?
The question many are asking: Can President Trump actually shut down USAID? While the president can make drastic changes to the agency, he cannot dissolve it with an executive order.
USAID was created by Congress in 1961 and later established as an independent agency through legislation in 1998. To dissolve it, an act of Congress would be required. However, Trump could still significantly reduce its operations by executive action, leading to litigation and legal challenges.

The Impact on USAID Employees
If President Trump attempts to dismantle USAID, it could have significant consequences for its employees:
- Furloughs or Job Losses: Employees might be placed on paid administrative leave, or they could lose their jobs altogether.
- Legal and Financial Uncertainty: Those who lose their jobs may face financial hardship and could seek legal action or await court rulings.
- Increased Stress: Many employees are already under stress, with reports of floors being emptied and agency-related photos removed from the walls.
The disruption has been swift.
In the two weeks since Trump’s inauguration, USAID has already laid off nearly 400 contract employees. The agency has also placed 56 senior staff members on administrative leave.
These actions are part of broader efforts to reshape the agency, with many employees and contractors fearing further cuts.
Musk’s Role in the Reshaping of USAID
Elon Musk, now heading the Department of Government Efficiency, has been highly critical of USAID, referring to it as “beyond repair.”
His comments about Trump agreeing to shut down the agency have raised alarms.
The Trump administration’s move to overhaul USAID is part of a larger effort to reduce government spending and cut costs.
The restructuring is not just about USAID.
The president’s recent executive orders have affected other areas of government, including mandates to return federal employees to office work and the suspension of diversity and inclusion programs.
Senior leaders within the Department of Justice and the FBI have also been removed, further signaling a shift in the government’s approach.
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What’s at Stake for USAID’s Mission and Global Impact?
USAID plays a vital role in US foreign aid and development, focusing on humanitarian assistance, poverty alleviation, and supporting global trade efforts.
If the agency is dissolved or severely curtailed, it would impact various programs designed to address global health, poverty, and disease.
The immediate consequences could be devastating for the countries relying on USAID’s support.
Shaping the Future of USAID and Federal Agencies
President Trump’s approach to reshaping government agencies has sparked widespread concern, not only for USAID employees but for federal workers across the board.
With several key decisions being made through executive orders, the long-term effects could reshape the federal workforce as a whole.
Employees are left wondering whether this new direction will lead to further cuts or restructuring of other critical agencies.
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Key Takeaways:
- Legal Challenge Ahead: While Trump cannot dissolve USAID by executive order, major reductions are still possible, triggering legal challenges.
- Uncertainty for 10,000 Workers: USAID’s 10,000 employees face an uncertain future, with some already laid off or placed on leave.
- Global Impact: Any major changes to USAID could affect critical foreign aid programs that help alleviate global poverty and disease.
As the situation unfolds, it remains to be seen how the Trump administration will handle the legal and financial implications for the agency and its workers.
The future of USAID is in limbo, and the ripple effects could be felt across both the US government and the global community.