Musk says shutting down USAID in government efficiency drive

US billionaire Elon Musk looks on ahead of the inauguration ceremony where Donald Trump will sworn in as the 47th US President, Jan. 20 (AFP)
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Updated 03 February 2025
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Musk says shutting down USAID in government efficiency drive

  • Foreign aid agency USAID disbursed $72 billion in fiscal year 2023
  • Aid covers women’s health, clean water, HIV/AIDS, energy, anti-corruption

WASHINGTON: Billionaire Elon Musk, who is heading US President Donald Trump’s efforts to shrink the federal government, gave an update on the effort early Monday, saying they are working to shut down the US foreign aid agency USAID.

Musk, who is also CEO of Tesla and SpaceX, discussed the Department of Government Efficiency (DOGE) in a Monday social media talk on X, which he also owns. Trump has assigned Musk to lead a federal cost-cutting panel.

The conversation, which included former Republican presidential candidate Vivek Ramaswamy and Republican Senator Joni Ernst, began with Musk saying they were working to shut down the United States Agency for International Development (USAID).

“It’s beyond repair,” Musk said, adding that President Trump agrees it should be shut down.

On Sunday Reuters reported the Trump administration removed two top security officials at USAID during the weekend after they tried to stop representatives from billionaire Musk’s Department of Government Efficiency (DOGE) from gaining access to restricted parts of the building, three sources said.

USAID is the world’s largest single donor. In fiscal year 2023, the US disbursed $72 billion of assistance worldwide on everything from women’s health in conflict zones to access to clean water, HIV/AIDS treatments, energy security and anti-corruption work. It provided 42 percent of all humanitarian aid tracked by the United Nations in 2024.

The online chat comes amid concerns about Musk’s access to the Treasury system, first reported by the New York Times, that sends out more than $6 trillion per year in payments on behalf of federal agencies and contains the personal information of millions of Americans who receive Social Security payments, tax refunds and other monies from the government.

Democrat Peter Welch, a member of the Senate Finance Committee, called for explanations as to why Musk had been handed access to the payment system and what Welch said included taxpayers’ sensitive data.

“It’s a gross abuse of power by an unelected bureaucrat and it shows money can buy power in the Trump White House,” Welch said in an emailed statement.

Musk has Trump’s support. Asked if Musk was doing a good job Sunday, Trump agreed. “He’s a big cost-cutter. Sometimes we won’t agree with it and we’ll not go where he wants to go. But I think he’s doing a great job. He’s a smart guy. Very smart. And he’s very much into cutting the budget of our federal budget.”

Musk’s team have been given access to or take control of numerous government systems.

Reuters reported on Friday, that aides to Musk charged with running the US government human resources agency have locked career civil servants out of computer systems that contain the personal data of millions of federal employees, according to two agency officials.

Musk has moved swiftly to install allies at the agency known as the Office of Personnel Management. A team including current and former employees of Musk assumed command of OPM on Jan. 20, the day Trump took office, the sources added.

Since taking office 11 days ago, Trump has embarked on a massive government makeover, firing and sidelining hundreds of civil servants in his first steps toward downsizing the bureaucracy and installing more loyalists.


India, Arab League target $500bn in trade by 2030

Updated 54 min ago
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India, Arab League target $500bn in trade by 2030

  • It was the first such gathering of India–Arab FMs since the forum’s inauguration in 2016
  • India and Arab states agree to link their startup ecosystems, cooperate in the space sector

NEW DELHI: India and the Arab League have committed to doubling bilateral trade to $500 billion by 2030, as their top diplomats met in New Delhi for the India–Arab Foreign Ministers’ Meeting. 

The foreign ministers’ forum is the highest mechanism guiding India’s partnership with the Arab world. It was established in March 2002, with an agreement to institutionalize dialogue between India and the League of Arab States, a regional bloc of 22 Arab countries from the Middle East and North Africa.

The New Delhi meeting on Saturday was the first gathering in a decade, following the inaugural forum in Bahrain in 2016.

India’s Foreign Minister S. Jaishankar said in his opening remarks that the forum was taking place amid a transformation in the global order.

“Nowhere is this more apparent than in West Asia or the Middle East, where the landscape itself has undergone a dramatic change in the last year,” he said. “This obviously impacts all of us, and India as a proximate region. To a considerable degree, its implications are relevant for India’s relationship with Arab nations as well.”

Jaishankar and his UAE counterpart co-chaired the talks, which aimed at producing a cooperation agenda for 2026-28.

“It currently covers energy, environment, agriculture, tourism, human resource development, culture and education, amongst others,” Jaishankar said.

“India looks forward to more contemporary dimensions of cooperation being included, such as digital, space, start-ups, innovation, etc.”

According to the “executive program” released by India’s Ministry of External Affairs, the roadmap agreed by India and the League outlined their planned collaboration, which included the target “to double trade between India and LAS to US$500 billion by 2030, from the current trade of US$240 billion.”

Under the roadmap, they also agreed to link their startup ecosystems by facilitating market access, joint projects, and investment opportunities — especially health tech, fintech, agritech, and green technologies — and strengthen cooperation in space with the establishment of an India–Arab Space Cooperation Working Group, of which the first meeting is scheduled for next year.

Over the past few years, there has been a growing momentum in Indo-Arab relations focused on economic, business, trade and investment ties between the regions that have some of the world’s youngest demographics, resulting in a “commonality of circumstances, visions and goals,” according to Muddassir Quamar, associate professor at the School of International Studies, Jawaharlal Nehru University.

“The focus of the summit meeting was on capitalizing on the economic opportunities … including in the field of energy security, sustainability, renewables, food and water security, environmental security, trade, investments, entrepreneurship, start-ups, technological innovations, educational cooperation, cultural cooperation, youth engagement, etc.,” Quamar told Arab News.

“A number of critical decisions have been taken for furthering future cooperation in this regard. In terms of opportunities, there is immense potential.”