*

USAID disbursed $72 billion in fiscal year 2023

*

Aid covers women's health, clean water, HIV/AIDS, energy,

anti-corruption

*

42% of global humanitarian aid tracked by UN in 2024

(Adds start of online conversation)

By David Shepardson and Chris Sanders

WASHINGTON, Feb 2 (Reuters) - Billionaire Elon Musk, who

is heading U.S. President Donald Trump's efforts to shrink the

federal government, gave an update on the effort early Monday,

saying they are working to shut down the U.S. foreign aid agency

USAID.

Musk, who is also CEO of Tesla and SpaceX,

discussed the Department of Government Efficiency (DOGE) in a

Monday social media talk on X, which he also owns. Trump has

assigned Musk to lead a federal cost-cutting panel.

The conversation, which included former Republican

presidential candidate Vivek Ramaswamy and Republican Senator

Joni Ernst, began with Musk saying they were working to shut

down the United States Agency for International Development

(USAID).

"It's beyond repair," Musk said, adding that President Trump

agrees it should be shut down.

On Sunday Reuters reported the Trump administration removed

two top security officials at USAID during the weekend after

they tried to stop representatives from billionaire Musk's

Department of Government Efficiency (DOGE) from gaining access

to restricted parts of the building, three sources said.

USAID is the world's largest single donor. In fiscal year

2023, the U.S. disbursed $72 billion of assistance worldwide on

everything from women's health in conflict zones to access to

clean water, HIV/AIDS treatments, energy security and

anti-corruption work. It provided 42% of all humanitarian aid

tracked by the United Nations in 2024.

The online chat comes amid concerns about Musk's access to

the Treasury system, first reported by the New York Times, that

sends out more than $6 trillion per year in payments on behalf

of federal agencies and contains the personal information of

millions of Americans who receive Social Security payments, tax

refunds and other monies from the government.

Democrat Peter Welch, a member of the Senate Finance

Committee, called for explanations as to why Musk had been

handed access to the payment system and what Welch said included

taxpayers' sensitive data.

"It's a gross abuse of power by an unelected bureaucrat and

it shows money can buy power in the Trump White House," Welch

said in an emailed statement.

Musk has Trump's support. Asked if Musk was doing a good job

Sunday, Trump agreed. "He's a big cost-cutter. Sometimes we

won't agree with it and we'll not go where he wants to go. But I

think he's doing a great job. He's a smart guy. Very smart. And

he's very much into cutting the budget of our federal budget."

Musk's team have been given access to or take control of

numerous government systems.

Reuters reported on Friday, that aides to Musk charged with

running the U.S. government human resources agency have locked

career civil servants out of computer systems that contain the

personal data of millions of federal employees, according to two

agency officials.

Musk has moved swiftly to install allies at the agency known

as the Office of Personnel Management. A team including current

and former employees of Musk assumed command of OPM on Jan. 20,

the day Trump took office, the sources added.

Since taking office 11 days ago, Trump has embarked on a

massive government makeover, firing and sidelining hundreds of

civil servants in his first steps toward downsizing the

bureaucracy and installing more loyalists.