President Donald Trump and Elon Musk have found an unexpected supporter in Mexican President Claudia Sheinbaum as they push forward with plans to dismantle the U.S. Agency for International Development (USAID).
The agency, which distributes billions of dollars in humanitarian aid worldwide, has come under growing scrutiny from Musk in recent weeks amid a Trump administration crackdown affecting federal programs across the government.
Why It Matters
The U.S. is by far the world's largest provider of humanitarian aid, with USAID overseeing billions of dollars in humanitarian, development, and security assistance across more than 100 countries.
Although foreign assistance makes up only about 1 percent of the federal budget, USAID has become a key target of the Department of Government Efficiency (DOGE), led by Musk.
On his first day back in office, Trump signed an executive order imposing an unprecedented freeze on foreign assistance, effectively shutting down many of USAID's programs. He stated that his administration will review spending to ensure funds are allocated in line with his "America First" foreign policy.
What To Know
During a press conference on Tuesday, Sheinbaum voiced support for shutting down USAID, criticizing the agency's role in funding organizations she described as working against Mexican interests.
"It's involved in so many things that, honestly, it's better if they just shut it down. If there's going to be aid, it should come through other transparent channels—that's the real issue," Sheinbaum said.
She cited the case of Mexicanos Contra la Corrupción y la Impunidad (MCCI), which her predecessor, Andrés Manuel López Obrador (2018–2024), labeled as "coup-mongering" after the group published investigations involving his sons and government officials—a frequent source of tension with Washington.
"This agency has funded everything from research projects to groups that oppose the government. In Mexico, 'Mexicanos Contra la Corrupción' has received proven support from this agency. So how is it that these so-called 'aid' agencies get involved in politics?" Sheinbaum questioned.
Sheinbaum's comments echoed those of Musk and Trump administration officials, arguing that if the U.S. genuinely wants to support development efforts, it should do so transparently and without political interference.
"If the United States wants to help with development, this money should be transparent," she said.
What is Happening in USAID?
On Monday, Musk, as head of the Department of Government Efficiency (DOGE), announced that President Donald Trump had decided to shut down USAID, calling it "beyond repair."
The announcement followed weeks of uncertainty, with senior USAID officials placed on leave, employees ordered to work remotely, and access to the agency's Washington, D.C., headquarters restricted.
Supporters of the move argue that USAID had become inefficient, mismanaged, and overly politicized, with Musk describing it as a "ball of worms" and Trump calling its leaders "radical lunatics." The Trump administration now plans to merge USAID with the State Department, signaling a significant reduction in its budget and workforce.
However, critics warn that dismantling USAID could weaken U.S. influence abroad, especially as countries like China expand their foreign aid programs.
What People Are Saying
President Donald Trump told reporters on Sunday: "USAID has been run by a bunch of radical lunatics and we're getting them out and then we'll make a decision."
U.S. Secretary of State Marco Rubio told Fox News: "They have basically evolved into an agency that believes that they're not even a U.S. Government agency, that they are out – they're a global charity, that they take the taxpayer money and they spend it as a global charity irrespective of whether it is in the national interest or not in the national interest".
Philip Brenner, Emeritus Professor of International Relations and History, American University, Washington, DC., told Newsweek: "The attempt to shut down USAID is unwise because it unnecessarily will harm millions of people who depend on the medical, food and technical assistance that USAID provides. The harm would be a significant stain on the moral standing of the United States, which already has one of the lowest per capita aid budgets among the world's richest countries".
What Happens Next
The State Department said Senator Marco Rubio has notified Congress of a review of USAID's foreign aid programs, possibly leading to a reorganization. Any changes are expected to face court challenges.
Senator Brian Schatz, a Democrat on the Senate Foreign Relations Committee, vowed to block all of Trump's State Department nominees until efforts to shut down USAID are reversed. "This is self-inflicted chaos of epic proportions that will have dangerous consequences all around the world," he said.
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About the writer
Jesus is a Newsweek reporter based in New York. Originally from Bogotá, Colombia, his focus is reporting on politics, current ... Read more