Washington: The U.S. Agency for International Development (USAID) has announced that it will place staff members worldwide on administrative leave, including those in overseas postings. The move, which takes effect just before midnight on February 7, is part of President Donald Trump’s broader effort to scale back government operations.

A statement on USAID’s website—which briefly went offline over the weekend—confirmed that the administrative leave applies to all direct-hire personnel, except those assigned to mission-critical functions, core leadership roles, and specially designated programs. The message concluded with a brief note: "Thank you for your service."

Musk’s Influence and the Drive to Downsize Government
The decision aligns with Trump’s aggressive efforts to shrink the federal government, a campaign backed by billionaire Elon Musk, one of his strongest financial supporters. The move has triggered outrage among Democrats and human rights advocates, who argue that USAID plays a vital humanitarian role worldwide.

Musk, who has significant business interests in China, has been particularly vocal in his criticism of USAID, calling it “a viper’s nest of radical-left Marxists who hate America”. He has also accused the agency—without evidence—of engaging in "rogue CIA operations" and funding bioweapon research, including COVID-19."

Musk claims that he personally cleared the decision with Trump, adding that shutting down USAID would free up billions in taxpayer money.

The Global Impact of USAID’s Shutdown
Founded in 1961, USAID is the humanitarian arm of U.S. foreign policy, funding health, education, and emergency relief programs in over 120 countries. The agency’s work is seen as a key pillar of American soft power, particularly in its geopolitical competition with rivals like China and Russia.

The largest beneficiaries of USAID funding in 2023 included:

-Ukraine – Over $16 billion in macroeconomic support
-Ethiopia
-Jordan
-Democratic Republic of Congo
-Afghanistan
-South Sudan
-Syria
Despite its $40 billion annual budget, USAID’s funding represents only a small fraction of the U.S. government’s nearly $7 trillion in yearly spending. However, hard-line conservatives and libertarians have long criticized foreign aid spending, arguing that taxpayer dollars should be used domestically rather than supporting global humanitarian efforts.

Political Fallout and Uncertain Future
The drastic downsizing of USAID marks one of the most significant changes to U.S. foreign aid policy in decades. While Trump and his allies argue that cutting foreign aid benefits American taxpayers, critics warn that it could weaken U.S. influence abroad, particularly in regions where China has been expanding its own foreign assistance programs.

With USAID’s future now uncertain, many in Congress, diplomatic circles, and humanitarian organizations are bracing for further cuts to international aid as Trump continues his second-term government overhaul.