Elon Musk’s team focused on cost reduction is putting the finishing touches on the dissolution of the US Agency for International Development (USAID), with orders to dismiss thousands of local employees, as well as US diplomats and civil servants stationed abroad, according to two former high-ranking officials from USAID and a knowledgeable source as of Tuesday.
On Friday, Congress was informed that nearly all of USAID’s workforce would be laid off by September, all international offices would be closed, and some responsibilities would be transferred to the State Department.
This latest decision by Musk’s so-called “government efficiency department” effectively marks the end of the remaining USAID personnel.
“This is definitely the final closing out,” remarked one of the former senior officials from USAID.
In February, Donald Trump and Musk initiated the process of closing down USAID and integrating its operations into the State Department to align with the president’s “America first” agenda. The State Department did not provide an immediate comment when contacted.
The former officials and sources aware of the situation, speaking on the condition of anonymity, reported that USAID’s human resources office informed regional bureaus during a conference call that layoff notifications would be issued to all more than 10,000 locally hired foreign nationals, effective in August.
Notifications will also be sent to US diplomats and civil servants who have been serving abroad for what has traditionally been the leading US foreign aid provider for over 60 years, they indicated.
Trump has unfoundedly alleged that the agency was plagued by fraud and operated by “radical left lunatics,” while Musk has made erroneous claims about it being a “criminal” entity.
Thousands of USAID staff members were placed on administrative leave and received layoff notifications on Friday, alongside hundreds of contractors being let go and over 5,000 programs terminated, disrupting global humanitarian assistance efforts relied upon by millions.
According to the non-partisan Congressional Research Service, USAID operates missions in over 60 countries, with the majority of its budget directed towards humanitarian aid and health initiatives.
Key recipients included war-torn nations like Ukraine, the Democratic Republic of Congo, the US ally Jordan, as well as the Israeli-occupied West Bank and the conflict-affected Gaza Strip.
A summary of the conference call circulated by one regional bureau, reviewed by Reuters, confirmed the termination of all locally hired foreign nationals and US diplomats and civil servants on assignment through USAID abroad.
It noted that over 600 US diplomats are currently seconded to USAID overseas, with no specific number provided for US civil service members. The majority are to be dismissed in July, coinciding with the goal to cease “all programmatic work.”
“Every position eliminated; 100 percent of the agency is rif’d (Reduction in Force) or will be,” the summary stated, advising personnel to prepare for their benefits as none would be retained.
