Elon Musk’s cost-cutting team is finalizing plans to dismantle the U.S. Agency for International Development (USAID) and intends to fire thousands of local workers, U.S. diplomats, and civil servants assigned to the agency overseas, according to two former senior USAID officials.
The Congress, on Friday, was informed that nearly all USAID employees would be fired by September, with all of its overseas offices closed and some functions transferred to the State Department. The move is part of Musk’s so-called Department of Government Efficiency (DOGE) to reduce federal spending waste, fraud and abuse.
A summary of the recent conference call confirmed that terminations will also extend to U.S. diplomats and civil servants working abroad for what has been a leading U.S. foreign aid provider for over 60 years, former officials said, according to an exclusive report by Reuters.
More than 600 U.S. diplomats are temporarily assigned to the USAID in various locations around the world. However, the number of U.S. civil servants impacted was not disclosed. Most terminations are expected by July when all programmatic work is slated to end.
“Every position eliminated; 100 percent of the agency is rif’d (Reduction in Force) or will be,” the call summary said, adding that no staff would be retained and to “focus on things to make sure you’re getting the right benefits.”
According to former officials and a source familiar with the situation, USAID’s human resources office informed regional bureaus that layoff notices would be sent to more than 10,000 locally hired foreign nationals, effective in August.
The latest moves by Musk’s DOGE will effectively dismantle the remaining USAID workforce.
“This is definitely the final closing out,” said one of the former senior USAID officials.
In February, President Trump and Musk, his appointed adviser for government cost-cutting, began the process of shutting down USAID and merging its operations into the State Department.
Trump has claimed without evidence that the agency was rife with fraud and run by “radical left lunatics”, while Musk falsely accused it of being a “criminal” organization.
Disruptions To Global Humanitarian Aid
Thousands of USAID staff members were placed on administrative leave, with layoff notices issued on Friday. The agency has also terminated hundreds of contractors and over 5,000 programs, severely disrupting global humanitarian aid efforts that millions of people rely on.
According to the Congressional Research Service, USAID operates in more than 60 countries, with most funding allocated to humanitarian aid and health programs.
Top recipients of USAID’s assistance include war-torn Ukraine, the Democratic Republic of Congo, U.S. ally Jordan, and regions like the West Bank and Gaza Strip.
Last month, the Trump administration, reportedly, proposed a plan to overhaul the U.S. foreign aid system, focusing on fewer regions aligned with American interests. They argue the current system is too broad, wasteful, and fosters dependency. The proposal also includes renaming USAID to the U.S. Agency for International Humanitarian Assistance.
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