Washington,Feb 5 (V7N) — The U.S. Agency for International Development (USAID) announced Tuesday that it is placing its employees on administrative leave and recalling staff from overseas, a move that signals a dramatic shift in U.S. foreign aid policy under President Donald Trump.

According to a statement on its website, the agency will suspend operations for all direct-hire personnel beginning just before midnight on February 7, except for those responsible for “mission-critical functions, core leadership, and specially designated programs.”

The decision follows Trump’s sweeping effort to shrink the federal government, an initiative backed by billionaire ally Elon Musk. The move has sparked outrage among Democrats and human rights groups, who warn it could have devastating consequences for global humanitarian efforts.

USAID plays a central role in U.S. foreign policy, funding health and emergency programs in approximately 120 countries, including some of the world’s most impoverished regions. The agency is widely viewed as a key instrument of American soft power, particularly in countering the influence of rivals like China, where Musk has extensive business interests.

Musk has been vocal in his opposition to USAID, calling it “a viper’s nest of radical-left Marxists who hate America.” The Tesla and SpaceX CEO has vowed to dismantle the agency, alleging—without evidence—that it engages in “rogue CIA work” and has “funded bioweapon research, including Covid-19, that killed millions.”

Musk, who holds lucrative contracts with the U.S. government and was the largest financial backer of Trump’s re-election campaign, said he personally discussed the shutdown with the president before the decision was made.

Critics warn that dismantling USAID would significantly weaken U.S. global influence while leaving millions without critical assistance.

USAID’s annual budget of more than $40 billion represents a small fraction of the U.S. government’s nearly $7 trillion in total spending. However, hardline conservatives and libertarians within the Republican Party have long argued that taxpayer dollars should not be used for foreign aid, insisting that the funds should be redirected toward domestic priorities.

The agency describes its mission as working “to end extreme poverty and promote resilient, democratic societies while advancing our security and prosperity.”

As the Trump administration moves forward with its plans to overhaul federal agencies, the future of USAID—and America’s role in global humanitarian efforts—remains uncertain.

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