One of his biggest moves was to propose dismantling the US Agency for International Development (USAID), and he said the bond market should thank him for that.
“We need a complete cleanup,” Bloomberg quoted Elon Musk as saying during a discussion on X Spaces at midnight on February 2. The billionaire backer of President Donald Trump announced that his team is looking to shut down USAID, the foreign aid agency established by the US Congress.
Elon Musk said he has President Donald Trump’s support for dissolving USAID and moving what’s left into the State Department. He noted that if the U.S. ever needs such an organization—or any of the regulations he’s eliminating—it can be easily re-established. USAID is the agency responsible for distributing civilian aid and development assistance to countries around the world. Last year, the agency managed about $40 billion in aid.
Fox News reported that more than 50 senior USAID officials have been suspended and placed on no-communications orders, meaning they cannot contact anyone outside the agency without approval. Signs at USAID headquarters in the Ronald Reagan Building in Washington, D.C., have also been removed. DOGE has taken control of the agency’s computer systems.
Earlier, President Donald Trump signed an executive order suspending all international aid administered by the State Department and USAID for 90 days, leading to the suspension of thousands of humanitarian and security programs around the world. Many aid organizations were forced to lay off large numbers of staff due to lack of operating budgets.
Elon Musk said he will speak with JPMorgan Chase & Co. CEO Jamie Dimon this week to convince the bond market that the DOGE spending-cutting initiative will boost confidence in U.S. debt. Any sign of deep spending cuts is a positive for investors expecting lower yields.
Also in the nearly hour-long X chat, Elon Musk publicly discussed DOGE in depth for the first time since President Donald Trump returned to the White House. He joined Republican Senators Joni Ernst and Mike Lee, as well as former DOGE co-chair Vivek Ramaswamy, to discuss how to expand DOGE’s mission.
Previously, President Donald Trump’s executive order only tasked DOGE with “modernizing federal technology and software to optimize government efficiency.” However, Elon Musk quickly expanded the scope of operations, including the DOGE team gaining access to the Treasury Department’s payment system and bringing allies into government personnel, property, and technology management agencies.
President Donald Trump has publicly supported Elon Musk's decisions: "I think Elon Musk is doing a great job. He's a very tough spender. Sometimes we're not going to agree and we're not going to go the way he wants, but I think he's doing a great job."
Elon Musk's heavy-handed approach to government raises questions about the future of US aid programs and fiscal policy.
New Jersey Democratic Senator Cory Booker strongly criticized on social media: "Mr. Elon Musk is recklessly and illegally dismantling USAID - an essential national security agency that saves lives, advances American interests, and maintains peace. This action is putting the health of millions of people, especially children, at serious risk. This will surely lead to future health and migration crises."
