Department Of Government Efficiency Chair and billionaire Elon Musk said Monday President Donald Trump had signed off on shutting down the U.S. Agency for International Development (USAID), a move that would send ripple effects through Latin America and the Caribbean, as well as several parts of the world.
"It became apparent that it's not an apple with a worm in it," Musk said in a live session on X Spaces early Monday. "What we have is just a ball of worms. You've got to basically get rid of the whole thing. It's beyond repair," he said. "We're shutting it down," he continued.
Closing down the agency could have ripple effects in the Americas, as the multi-decade agency led efforts in development, aid and justice in countries in Central and South America.
According to Congressional Research Service, "Over the past decade, top U.S. funding priorities for foreign assistance in the region have included addressing the underlying drivers of migration from Central America, combating drug production and supporting peace accord implementation in Colombia, and strengthening security and the rule of law in Mexico."
"U.S. agencies also have prioritized programs intended to counter HIV/AIDS and instability in Haiti, address security concerns in the Caribbean, and respond to the political and humanitarian crises in Venezuela and their impact on the broader region," the report says.
Congress has appropriated over the years billions in aid for countries across the region to use through the agency. But the recent move could upend this.
In 2024, Congress approved $25 million for Cuba and $50 million for Venezuela in democracy programs, $15 million for democracy and religious freedom programs for Nicaragua, and around $125 million under Economic Support Funds and International Narcotics Control and Law Enforcement accounts for programs to counter the flow of fentanyl and other synthetic drugs to the U.S. coming from Mexico.
"In a context of shrinking financial support in Latin America for human rights and democracy promotion, U.S. foreign assistance— particularly through USAID— has become a vital way for civil society partners throughout the region to continue with their work," Washington Office on Latin America (WOLA) wrote in a recent report.
In Central America, for instance, USAID has been used to battle corruption, address economic insecurity and advance the rule of law. Countries like Guatemala, Honduras and El Salvador rank among the U.S. government's top-priority countries for assistance in the Western Hemisphere. In Guatemala particularly, the most impacted project will be Justice and Transparency, which aims to "reduce criminal impunity and more effectively investigate, prosecute, and adjudicate crimes that drive illegal migration."
Migration, one of the Trump administration's top priorities, could also be affected by this decision. According to WOLA, the U.S. government provided over $3.5 billion in humanitarian aid to Venezuela from 2017 to 2024. Those efforts, which are now on hold, have been seeking to reduce Venezuelan migration through the Darien Gap toward the United States.
Though the agency's fate remains in the air, Democrats are protesting the move, saying Trump lacks constitutional authority to shut down USAID without congressional approval and decrying Musk's accessing sensitive government-held information through his Trump-sanctioned inspections of federal government agencies and programs.
"We must do everything in our power to push back and protect people from harm," Sen. Elizabeth Warren (D-Mass.) said, without giving details.
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