Elon Musk's DOGE To Permanently Close USAID, Terminating 10 Thousands Staffs By Sep 2025: Report

Elon Musk's Department of Government Efficiency (DOGE) is set to permanently close the United States Agency for International Development (USAID), terminating all thousands of staff members including local workers and American diplomats and civil servants by September 2025, reported news agency Reuters.

The US Congress was notified on Friday that the majority of USAID staff will be let off by September, that its foreign offices would close, and that some operations would be transferred to the State Department. The USAID human resources office (HRO) informed regional bureaus via conference call that more than 10,000 locally employed foreign staff would receive termination notifications, which will be starting from August 2025, as per the Reuters report.

Furthermore, they stated that notices would be sent to many federal servants employed abroad as well as more than 600 US ambassadors. To put an end to all "programmatic work," their employment will be terminated by July.

According to Reuters, a former top USAID official said, "This is definitely the final closing out. Every position eliminated; 100 percent of the agency is RIF'd (Reduction in Force) or will be."

USAID staff were reportedly told to "focus on things to make sure you're getting the right benefits" and that no one would be kept on, Reuters reported.

Impact of Trump Administration's 'America First' Policy:

To make sure USAID's operations aligned with the president's "America first" policy, US President Donald Trump and his close companion Elon Musk began dismantling the organisation in February 2025 and combining its functions into the state department. A request for comment was not immediately answered by the state department.

Due to DOGE's crackdown on USAID offices, which have been running for 64 years, thousands of employees have been placed on indefinite administrative leave after President Trump accused the agency of being headed by "radical left lunatics," without providing any evidence. The termination of over 5,000 programs and the firing of hundreds of contractors have disrupted international humanitarian initiatives that were supported by USAID workers and funds.

Amidst the impending shutdown, the agency had challenges from reduced funding, contractor layoffs, and delays in acquiring visas, after sending a team to help Myanmar after the earthquake on March 28, 2025.

"A lot of internal confusion about capability to respond and willingness to respond" has hampered their ability to aid, Sarah Charles, who led the agency's humanitarian assistance office until February 2024, told Reuters.

To cut costs and streamline government operations, DOGE has already laid off tens of thousands of federal employees as per reports. The remaining employees of the agency will be eliminated as a result of Elon Musk's department's most recent action.

USAID's Role and Impact on Global Development:

USAID is an independent U.S. government agency that provides foreign aid and development assistance to promote global stability, economic growth, and humanitarian relief. Established in 1961, USAID works in more than 100 countries, focusing on areas such as health, education, agriculture, economic development, and governance. The agency aims to address poverty, support democratic reforms, and respond to crises. Through its programs, USAID helps improve lives and advance U.S. foreign policy goals globally.