What will happen to 10,000 employees? Elon Musk said early Monday morning that President Donald Trump agreed to “shut down” the U.S. Agency for International Development. A few hours later, The Wall Street Journal reported that the Trump administration had closed USAID headquarters. This all comes after several days of speculation and reporting that Trump wants to dissolve the agency and fold some or all of its functions into the State Department.

The question is — can the president do this? Can President Trump legally shut down USAID? And if so, what happens to its more than 10,000 employees? Would they be placed on paid administrative leave like some of the agency’s senior leaders already have? And if so, for how long would they be paid? Or, could they be fired altogether?

Decisions made immediately after President Trump’s administration have resulted in full-scale, rapid and tumultuous change throughout the federal government, and many federal workers and agency employees are reeling, confused and frightened. The administration has either fired employees outright, placed them on administrative leave or offered them buyouts. Many other federal workers report intense questioning on a variety of topics and worry about keeping their jobs. There is great fear and uncertainty across the government.

Can President Trump Dissolve USAID by Executive Order?

According to Just Security, Trump can drastically curtail USAID with executive actions alone; however, he “may not unilaterally override” a statute by executive order. USAID was established by statute as its own agency via Congress in 1998 after first being created by executive order in 1961 by President John F. Kennedy. Since an act of Congress established it as an independent agency, an act of Congress would be necessary to dissolve it.

What happens if President Trump attempts to dissolve USAID by executive order?

“Litigation and congressional oversight are certain to follow, but the question is how effective either will be in the immediate term at stopping the most damaging impacts for USAID’s programs and its employees. The details of the E.O. will shape how specific challenges to the action unfold, but expect to see at a minimum suits brought by beneficiaries of USAID programs, impoundment act challenges, and more.”

Democratic Senator Chris Coons posted on X that, “President Trump spent two weeks harassing and laying off USAID employees, and now his team is trying to gut the agency altogether.”

What’s At Stake For 10,000 USAID Employees?

While litigation unfolds, if Trump dissolves USAID, employees will either go on paid administrative leave or lose their jobs, forcing them to seek legal action or wait for a court order. The immediate impact could be financially devastating for those who lose their jobs. And surely, the anxiety and stress these employees are experiencing right now is difficult for them to bear.

The U.S. Agency for International Development employs more than 10,000 employees. In the 15 days since President Trump’s inauguration, USAID has laid off many employees and contractors. The Trump administration’s stop-work order for foreign assistance led to nearly 400 USAID contract employees losing their jobs last week.

Prior to this, the administration placed 56 senior staffers on leave amid suspicions that they had circumvented President Trump’s executive order to freeze foreign aid. The administration also placed twotop USAID security officials on administrative leave after they refused to allow members of the newly formed advisory office known as the Department of Government Efficiency to enter the building and access USAID’s systems.

Considering all of this along with employees telling NPR that, “entire floors had been emptied out and the walls stripped of USAID-related photos,” it appears that the Trump administration does not intend to permit USAID to go on with business as usual.

Inside the Trump’s Effort To Reshape Or Dissolve USAID

Since the 2024 election, Elon Musk has been strongly critical of USAID officials, frequently expressing his frustrations with the agency and its personnel through public comments and posts on social media. Now serving as head of the Department of Government Efficiency, Musk has characterized USAID as “beyond repair” and a “ball of worms.”

Sunday evening, and prior to Elon Musk’s comments about Trump agreeing to shut down USAID, President Trump answered reporters’ questions and made the following comment about USAID and its leaders

“It’s been run by a bunch of radical lunatics, and we’re getting them out. USAID run by radical lunatics, and we’re getting them out and then we’ll make a decision.”

President Trump spoke highly of Elon Musk’s leadership and called him very smart and a big cost cutter. Specifically, Trump said, “I think he’s doing a great job. He’s a smart guy, very smart.” A few hours later, Monday morning, Musk asserted that Trump agreed to “shut down” USAID.

With the exception of support contractors, USAID employs more than 10,000 people in its workforce, and the majority of these workers serve oversees. The Congressional Research Service describes the agency as,

“The U.S. Agency for International Development (USAID) is the lead international humanitarian and development arm of the U.S. government. Established in 1961 to implement the Foreign Assistance Act of 1961, it provides assistance to strategically important countries and countries in conflict; leads U.S. efforts to alleviate poverty, disease, and humanitarian need; and assists U.S. commercial interests by supporting developing countries’ economic growth and building countries’ capacity to participate in world trade.”

Trump’s Policies Are Affecting More Than Just USAID

Less than two weeks into his term, President Trump has initiated significant changes within the federal government, raising concern among federal employees and recipients of federal aid. His actions are testing the extent of executive authority to reshape the government’s structure, operations, and traditionally nonpartisan functions without congressional approval.

Beyond USAID, these developments set a precedent for how federal agencies may be reshaped or dismantled. On the first day of President Trump’s second term, he signed executive orders ending remote work and ordered all federal employees to return to the office by late February. He also signed an order that eliminated diversity, equity, and inclusion programs and policies and placed all DEI employees on administrative leave before ordering agency heads to move forward to fire them.

The Department of Justice and the Federal Bureau of Investigation are also experiencing a share of senior leaders and executives being removed from their jobs. It’s happening to large swaths of agencies and federal workers across the board.

Recommended reading:

How Long Will The Federal Hiring Freeze Last? Implications For Government Employees

Trump: Federal Workers Will Be Fired Unless They End Remote Work And Return To Office Soon

Fire DEI Employees ‘To The Maximum Extent Allowed By Law’: Trump Administration

DHS Acting Secretary Orders Employees To Return To Office