In a move that has shaken both domestic and international stakeholders, the US Agency for International Development (USAID) is facing an existential crisis.

At the heart of this turmoil are US President Donald Trump and his close ally, billionaire Elon Musk, who, with the backing of the Trump administration, have announced the shutdown of the agency.

This marks a dramatic shift in US foreign policy, a policy that has long placed humanitarian aid, development programs, and international partnerships at the forefront of American global influence.

The decision has disrupted the agency’s operations, plunging the millions of people who rely on US foreign assistance into uncertainty.

Let’s take a closer look.

The Shutdown Announcement and Its Immediate Impact

On a Monday morning, February 3, Elon Musk, leading the Department of Government Efficiency (DOGE) under Trump’s direction, made a public declaration to “shut down” USAID.

Musk described the agency as “beyond repair,” claiming that it was a “ball of worms” that needed to be eradicated.

His comments followed a series of rapid developments in the two weeks since Trump assumed office, including the shuttering of USAID’s programs, mass layoffs, furloughs, and the removal of key leadership.