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By Monica Sager and Kate Nalepinski
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U.S. Agency for International Development (USAID) employees have reportedly been asked to stay out of the agency's headquarters on Monday while internal systems are down amid President Donald Trump's continued freeze on foreign aid.
What To Know
Employees were instructed in a notice to stay out of the agency's Washington headquarters on Monday, the Associated Press reported. Further, more than 600 employees were denied access to the USAID system overnight.
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Newsweek reached out to the USAID and the White House via email for comment.
What Is USAID?
USAID is the federal agency responsible for administering civilian foreign aid and development assistance worldwide. Established to advance American foreign policy goals, USAID provides funding for humanitarian relief, economic development, democracy promotion and global health initiatives in more than 100 countries.
The agency works closely with the State Department and other U.S. government entities to implement international assistance programs.
In 2023, USAID managed over $40 billion in combined appropriations. It accounted for over one-third of the funds provided in the fiscal year across the State, Foreign Operations, and Related Programs appropriation and the Agriculture appropriation, tied to international food aid.
Who Founded USAID?
USAID was founded in 1961 by former President John F. Kennedy through the Foreign Assistance Act. The agency was created to unify and streamline the United States' international development efforts, which multiple agencies previously managed.
USAID was tasked with supporting economic growth and providing humanitarian assistance. These were priorities when the program launched during the Cold War, aimed at countering Soviet influence in developing nations.
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Who Is Funding USAID?
The U.S. Congress primarily funds USAID through the federal budget process.
Each year, appropriations are allocated to the agency to support its development programs, with funding directed to specific regions, countries, and initiatives.
According to the (now-defunct) website: "USAID's funding comes from Congress. USAID works with both Congress and the Executive Office to determine priorities. Across USAID, there are a variety of policies, strategies, and frameworks that outline how we work."
Why It Matters
Billionaire Elon Musk, who has been working closely with the Trump administration on government efficiency initiatives, said that he and Trump agreed to shut down USAID.
In an X Spaces discussion, Musk said: "None of this could be done without the full support of the president, you know. And with regard to the USAID stuff, I went over it with him in detail, and he agreed that we should shut it down."
Musk further justified the move by claiming the agency was "beyond repair." After digging into USAID, he said, "It became apparent that what we have here is not an apple with a worm in it, but we have actually just a ball of worms."
Newsweek reached out to Elon Musk's press team at X via email for comment.
What Happens Next
USAID shutting down is expected to create challenges for some federal workers. Whether USAID's functions will be absorbed by another department, such as the State Department, remains uncertain.
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