The DOGE group, led by Elon Musk, has intensified efforts to dismantle USAID after a State Department official flagged a suspicious $153 million payment, sources say.
The Discovery That Sparked a Crackdown
On January 23, Pete Marocco, recently appointed as Director of Foreign Assistance at the State Department under President Donald Trump, was reviewing USAID’s financial transactions when he noticed a $153 million expenditure.
At the time, Marocco was drafting an internal diplomatic cable enforcing Trump’s 90-day freeze on foreign aid, issued on his first day in office. He demanded to know why USAID had transferred funds despite the freeze.
USAID officials explained that the funds covered salaries, outstanding payments to contractors, and other operational costs. They argued these expenses did not violate the president’s order.
But Marocco wasn’t convinced. On January 27, he arrived at USAID headquarters with a group of more than 10 officials—mostly from the newly created DOGE agency, led by Elon Musk, which aims to cut government spending and streamline operations.
From that moment, USAID became a primary target for Musk and Trump’s administration.
Sweeping Suspensions and Investigations
- Within days, nearly all of USAID’s 10,000 employees worldwide—except for 600 essential staff—were suspended.
- A federal judge later intervened, temporarily blocking some of the administration’s actions.
- The DOGE team took control of USAID’s Phoenix financial system, which tracks spending and grants.
Some officials at USAID believe this aggressive campaign against their agency is a test run for broader government cuts, including potential restructuring of the Departments of Education and Defense.
Musk and Trump’s Push to Shut Down USAID
Trump has been vocal about his hostility toward USAID, posting on social media:
"SHUT IT DOWN."
Musk went even further, calling USAID a "criminal organization" that "must be destroyed."
"We’re the first target," a senior USAID official said. "But we won’t be the last."
Inside the Takeover of USAID Headquarters
When the DOGE team arrived at USAID, they:
- Interrogated senior staff about funding decisions and contract approvals.
- Demanded access to secure USAID offices, prompting a stand-off with security officials.
- Suspended 58 high-ranking officials suspected of interfering with Trump’s foreign aid freeze.
USAID’s chief labor relations officer, Nicholas Gottlieb, tried to reinstate those suspensions, arguing there was no evidence of wrongdoing.
- Within hours, Gottlieb himself was suspended.
- By February 3, USAID employees were ordered to work from home, and its website was taken offline.
Congress and Courts Push Back
Lawmakers from both parties expressed alarm, particularly over the impact on U.S. agricultural exports, as USAID typically purchases $2 billion in U.S. farm products annually for humanitarian aid.
A federal judge has temporarily halted some of the suspensions, but as of February 7, only 600 USAID employees remain on duty, while thousands remain in limbo.
Meanwhile, DOGE officials continue probing the infamous $153 million transaction, seeking to identify who authorized the payment—a move many see as a pretext to further dismantle USAID.
What’s Next?
While the Trump administration insists it’s simply cutting waste, critics warn the end goal is the total elimination of USAID.
"They’re not just studying USAID," said Democratic Senator Andy Kim, a former USAID official. "They know exactly what they’re doing—it’s not just an evaluation."
As tensions mount, even Republicans are concerned about how these cuts could affect American interests abroad.
For now, USAID employees await their fate, as Musk and Trump push forward with their unprecedented crackdown.
(Sources: Politico, AFP, Reuters)
