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Elon Musk Supports Trump’s Push to Close U.S. Aid Agency

Efforts to Downsize Federal Government: Implications for International Development

Billionaire Elon Musk has been pivotal in spearheading initiatives under the Trump administration aimed at reducing the size of the federal government. His recent comments have highlighted the progress made towards discontinuing the American Agency for International Development (USAID), as acknowledged by various sources.

Musk emphasized that the agency remains unreformed and that President Trump supports its closure. Reports indicate that internal tensions escalated when two senior security officials at USAID were isolated following attempts to prevent representatives of the Ministry of Government Efficiency from entering restricted areas within the agency’s facility.

Since its establishment in 2003 after the fall of Saddam Hussein’s regime, USAID has played a crucial role in supporting Iraq. The agency has provided significant aid to both official and unofficial institutions, civil society organizations, and the banking sector. Its contributions have included substantial educational resources such as bags and notebooks, along with broader initiatives aimed at revitalizing civil society.

USAID holds the distinction of being the largest single donor globally. In the fiscal year, the United States allocated approximately $72 billion to various sectors, including women’s health, clean water, energy security, and anti-corruption measures.

In Iraq, USAID partnered with the Iraqi National Bank in 2024, providing $1.65 million to fund small and medium-sized enterprises. The agency launched a project aimed at supporting over 18 Iraqi initiatives and also contributed to the "Baghdad Makers" initiative, which facilitated 25 commercial projects in the capital.

In November 2024, USAID announced a $20 million investment in collaboration with UN agencies across five Iraqi provinces, positively impacting the lives of 2.5 million people, including vulnerable groups. Furthermore, in August 2024, the agency provided $2.2 million to the World Food Program to support 41,000 displaced Syrians in northern Iraq.

The anticipated closure of USAID poses a potential threat to ongoing development and stability projects within Iraq. Such a development could significantly alter bilateral relations between the United States and Iraq, especially if this international support is not offset by alternative funding or initiatives.

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