Elon Musk's Dismantling of USAID: Lies, Power Grabs, and Real-World Consequences

You might not think foreign aid is important, but this is about so much more.

Elon Musk has spent months positioning himself as the ultimate government watchdog, claiming he’s rooting out inefficiency and waste. But when it comes to USAID, his actions have done nothing but destroy an institution that benefits both America and the world. His campaign to gut USAID is based on outright lies, personal conflicts of interest, and a reckless disregard for the economic and national security consequences.

USAID has long been one of the most effective arms of U.S. foreign policy, providing humanitarian aid, stabilizing fragile states, preventing conflicts, and ensuring that American farmers and businesses benefit from global markets.¹ But Musk, backed by Trump, is hell-bent on eliminating it.

To put things in perspective: USAID’s entire annual budget is less than 1% of U.S. federal spending.² Meanwhile, Elon Musk’s personal net worth is over ten times that amount. The idea that USAID is some massive financial drain is nothing more than a convenient hoax designed to mask Musk’s true agenda—consolidating power while dismantling an agency that has held his businesses accountable.

Musk’s USAID Lies

Musk’s campaign against USAID has been one of the most dishonest in recent memory. He has deliberately spread falsehoods and conspiracy theories to justify his actions. Here are some of the most blatant:

• The Condom Hoax – Musk falsely claimed that $50 million was spent sending condoms to Gaza under USAID. In reality, that money was part of an HIV prevention program in Mozambique—and wasn’t even used on condoms.³ This hoax was amplified by right-wing media and used as a justification for budget cuts.

• The Samantha Power Smear – Musk implied that former USAID Administrator Samantha Power embezzled $30 million in taxpayer money. This baseless accusation originated on a conspiracy website and has no factual basis.⁴

• The “Criminal Organization” Lie – Musk has repeatedly called USAID corrupt and beyond reform, despite the fact that his own companies have profited from USAID-funded initiatives.⁵

• Fake “Fraud” Claims – Musk falsely alleged that billions were “missing” from USAID’s budget, a claim debunked by independent auditors and watchdog groups.⁶

Musk’s method is simple but effective:

1. Invent a fake scandal.

2. Spread it through his own media channels (X, Tesla-affiliated sites, etc.).

3. Watch as right-wing influencers repeat the lie until it becomes accepted as fact.

4. Use the manufactured outrage to slash funding and seize control.

It’s a textbook case of disinformation and authoritarian governance.

What USAID Actually Does

If you only listened to Musk’s rants, you’d think USAID is some shadowy money pit. In reality, it’s one of the most cost-effective, results-driven agencies in the U.S. government.

Founded in 1961 under President John F. Kennedy, USAID has played a crucial role in strengthening U.S. economic and national security interests.⁷ Here’s what Musk is actively destroying:

• Protecting U.S. National Security – USAID helps stabilize conflict zones and weak states, preventing the rise of terrorist organizations. Programs in Afghanistan, Iraq, Syria, and Yemen have reduced extremism, strengthened governance, and created economic opportunities, all of which make the U.S. safer.⁸

• Strengthening the U.S. Economy – USAID creates new markets for American goods by fostering economic growth in developing nations. This increases demand for U.S. agricultural exports, manufacturing, and technology, bringing billions in returns to American businesses.⁹

• Public Health & Disease Prevention – USAID has played a key role in global health advancements, including:

• Eradicating Smallpox

• Funding life-saving HIV/AIDS treatments

• Fighting Ebola and COVID-19

• Providing maternal and child healthcare to reduce infant mortality¹⁰

• Countering China & Russia’s Influence – As USAID retreats, China and Russia are stepping in to fill the void. Beijing, in particular, is using foreign aid as a strategic tool to expand its influence across Africa, Latin America, and Asia.¹¹

In short, cutting USAID isn’t just cruel—it’s strategically stupid.

The Devastating Impact of Musk’s Actions

Musk’s gutting of USAID isn’t theoretical—it is already causing widespread harm:

• $500 Million in Food Aid is Rotting – USAID’s budget freezes have left nearly half a billion dollars worth of food aid sitting in warehouses, spoiling instead of feeding starving families.¹²

• HIV/AIDS Treatment Programs Have Shut Down – Clinics in sub-Saharan Africa that provide lifesaving antiretroviral drugs have been forced to close.¹³

• Collapse of Refugee Support – USAID-backed refugee camps in Syria, Yemen, and Sudan have been abandoned, leaving hundreds of thousands of displaced people with no access to food, shelter, or medicine.

• Harm to American Farmers – USAID-funded programs buy surplus crops from American farmers, ensuring steady demand and stabilizing prices. The cuts mean rural economies will take a major hit, particularly in Midwestern states.¹⁴

This isn’t “cutting government waste.” It’s inflicting deliberate harm on America’s allies, its own citizens, and its economy.

Musk’s Own Ties to USAID

The most infuriating part of this entire saga? Musk himself has benefitted from USAID funding.

• Tesla has received millions in government subsidies, including funding for clean energy initiatives that involved USAID-backed projects.¹⁵

• Starlink (owned by Musk) has been used in USAID-funded operations, including internet connectivity in war zones and disaster relief efforts.¹⁶

In other words, Musk has no problem taking taxpayer money when it benefits him—but now that USAID is holding his companies accountable, he’s orchestrating its destruction.

The Long-Term Consequences

The collapse of USAID will have far-reaching consequences for America’s security, economy, and global leadership.

• More Global Instability – Expect more refugee crises, more extremist recruitment, and greater chances of U.S. military intervention.

• Increased Illegal Immigration – USAID stabilizes economies in Central America, reducing migration to the U.S.Cutting these programs will worsen the border crisis.¹⁷

• Handing Influence to China & Russia – Beijing is already stepping in to replace U.S. aid, using it as leverage to expand its power.¹⁸

What Can Be Done?

This isn’t a done deal—we can fight back:

📞 Call Your Representatives – Demand that Congress restore USAID funding and investigate Musk’s abuses.

📢 Spread the Word – Debunk the lies. USAID is not a wasteful agency—it is a vital tool of American power.

This isn’t about efficiency. It’s about power. If they can dismantle USAID today, what’s next? Medicare? Social Security? The next vital institution?

We have to draw the line now.

1. https://www.aljazeera.com/news/2025/2/3/what-is-usaid-and-how-central-is-it-to-us-foreign-policy

2. https://www.pewresearch.org/short-reads/2025/02/06/what-the-data-says-about-us-foreign-aid/

3. https://www.bbc.com/news/articles/cwyjz24ne85o

4. [see above]

5. https://www.aljazeera.com/news/2025/2/3/what-is-usaid-and-how-central-is-it-to-us-foreign-policy

6. https://www.bbc.com/news/articles/cwyjz24ne85o

7. https://time.com/7213288/what-is-usaid-what-impact-does-it-have-across-the-globe/

8. https://www.cfr.org/article/what-usaid-and-why-it-risk

9. https://thebulletin.org/2025/02/how-the-shutdown-of-usaid-will-hurt-americans-and-empower-foreign-adversaries/

10. https://time.com/7213288/what-is-usaid-what-impact-does-it-have-across-the-globe/

11. https://www.usnews.com/opinion/articles/2025-02-10/usaid-make-america-great-again

12. https://www.theguardian.com/us-news/2025/feb/10/usaid-trump-elon-musk-cuts

13. https://time.com/7213288/what-is-usaid-what-impact-does-it-have-across-the-globe/

14. https://thebulletin.org/2025/02/how-the-shutdown-of-usaid-will-hurt-americans-and-empower-foreign-adversaries/

15. https://www.aljazeera.com/news/2025/2/3/what-is-usaid-and-how-central-is-it-to-us-foreign-policy

16. https://thebulletin.org/2025/02/how-the-shutdown-of-usaid-will-hurt-americans-and-empower-foreign-adversaries/

17. https://www.usnews.com/opinion/articles/2025-02-10/usaid-make-america-great-again

18. https://time.com/7213288/what-is-usaid-what-impact-does-it-have-across-the-globe/