USAID places global employees on administrative leave after DOGE uncovers billions in fraudulent payments

On Monday, Elon Musk took aim at the U.S. Agency for International Development (USAID), calling it a “criminal organization” that should “die.” His comments followed reports that the Department of Government Efficiency (DOGE) team accessed the agency’s systems and uncovered billions in fraudulent payments. Shortly after the news broke, USAID’s website went offline.

Elon Musk took aim at the U.S. Agency for International Development (USAID) on Monday, calling it a “criminal organization” that should “die.” His comments followed reports that the Department of Government Efficiency (DOGE) team accessed the agency’s systems and uncovered billions in fraudulent payments. Shortly after the news broke, USAID’s website went offline.

Two days later, the site was back up with an announcement: nearly all USAID employees worldwide are being placed on administrative leave. Only those handling mission-critical tasks, core leadership roles, or select programs will remain active.

A notice on the homepage confirmed the decision:

“On Friday, February 7, 2025, at 11:59 pm (EST) all USAID direct hire personnel will be placed on administrative leave globally, with the exception of designated personnel responsible for mission-critical functions, core leadership and specially designated programs. Essential personnel expected to continue working will be informed by Agency leadership by Thursday, February 6, at 3:00pm (EST).

For USAID personnel currently posted outside the United States, the Agency, in coordination with missions and the Department of State, is currently preparing a plan, in accordance with all applicable requirements and laws, under which the Agency would arrange and pay for return travel to the United States within 30 days and provide for the termination of PSC and ISC contracts that are not determined to be essential. The Agency will consider case-by-case exceptions and return travel extensions based on personal or family hardship, mobility or safety concerns, or other reasons. For example, the Agency will consider exceptions based on the timing of dependents’ school term, personal or familial medical needs, pregnancy, and other reasons. Further guidance on how to request an exception will be forthcoming.

Thank you for your service.”

DOGE’s findings triggered a wave of reaction online, with reports of massive financial mismanagement at USAID fueling widespread debate. The agency, now part of the U.S. Department of State, faces increased scrutiny.

Musk didn’t hold back during an X Spaces session, comparing USAID to a “ball of worms” and arguing that reforming it is impossible.

“If you have an apple with a worm in it, you can take the worm out,” he wrote. “If you have a whole ball of worms, it’s hopeless. USAID is a ball of worms. There is no apple. And when there is no apple you just need to get rid of the whole thing. That’s why it’s got to go. It’s beyond repair.”

The agency has yet to issue a formal response to Musk’s remarks or the fraud allegations.

This latest development comes after 60 USAID employees were placed on leave last week for allegedly trying to bypass President Trump’s executive order aimed at halting foreign aid.

USAID’s Future Under Trump Administration

The Trump administration is reportedly targeting USAID as part of broader federal restructuring efforts. A three-page letter revealed that President Trump is considering merging the agency into a branch under the State Department, a move that some officials believe is intended to curb government corruption and inefficiency.

USAID, established in 1961, manages a budget exceeding $50 billion and employs approximately 10,000 people, not including contractors. About two-thirds of its workforce operates overseas.