Elon Musk’s co-founded Department of Government Efficiency (DOGE) initially issued thousands of termination notices to US Agency for International Development (USAID) employees after an appeals court lifted the temporary ban on the agency’s dismantlement last week. However, the layoff letters reportedly contained several errors, forcing the administration to send new, corrected versions.
According to a Thursday Reuters exclusive, citing five sources familiar with the matter, the termination letters sent last Friday to approximately 3,500 USAID employees contained multiple inaccuracies. The errors ranged from incorrect employment start dates to miscalculations of service length and salaries, details that determine severance pay and pensions.
One USAID worker reported that their total federal service was listed as three years shorter than reality at the first notice. A revised letter was issued on Monday but incorrectly shortened it by six years. Another recipient said their letter only contained their name as the correct detail.
“We’ve got people who have served for 25 years, and their notices are showing they served for only three,” a US official told Reuters. “It affects their severance. It affects their future ability to retire.”
The situation forced USAID’s human resources department, previously placed on administrative leave, to return to work and reissue accurate notices.
President Donald Trump and Musk’s efforts to dismantle USAID kicked off in February when the former decided to merge its functions into the State Department, overseen by Secretary of State Mark Rubio.
The agency, which has provided foreign aid for over 60 years, was accused by Trump of being corrupt and “run by radical left lunatics.” Musk labelled USAID a “criminal” organization that “needs to die.”
Under the restructuring plan, all 10,000 locally hired foreign nationals working for USAID will lose their jobs in August. US diplomats and civil servants assigned to the agency overseas are also being let go.
According to DOGE records, thousands of employees have been placed on administrative leave since February, more than 5,000 aid programs have been terminated, and hundreds of contractors have been dismissed.
The execution of the terminations, which Democrats argue is hasty and misappropriated, has left many employees uncertain about their severance and future employment status.
Some termination notices did not account for employees who requested waivers to extend their service, including those stationed overseas whose children are still in school. Others sought more time to relocate but received notices that did not reflect their waiver requests.
“Some people have the wrong dates. Others have the wrong information,” said a person familiar with the matter. “People given the wrong termination date can’t return home unless their notices are reissued with the correct date.”
Defending its cost-cutting efforts, DOGE claims to have saved US taxpayers $140 billion by implementing large-scale layoffs, cancelling contracts, and selling government assets. However, the savings total is unverifiable, and previous estimates still require corrections.
Per Reuters, acting administrators Jeremy Lewin and Kenneth Jackson, both affiliated with DOGE and answering to Secretary Rubio, are overseeing the closure of USAID.
In related news, the White House confirmed on Wednesday that it has addressed the Politico article claiming Elon Musk will leave his role at the Department of Government Efficiency (DOGE) soon, saying his departure will come once his work within the agency is considered complete.
White House press secretary Karoline Leavitt responded to the reports with a rebuttal on X, posting:
“This ‘scoop’ is garbage. Elon Musk and President Trump have both publicly stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete.”
Musk quoted Leavitt’s statement, replying, “Yeah, fake news.”
Politico’s report, published Wednesday, stated that Trump had privately told members of his Cabinet and close allies that Musk would be “stepping back in the coming weeks.” Musk’s temporary appointment as a “special government employee” could end after 130 days in May, but he is free, by law, to continue working for multiple years.
Liberals are questioning Musk’s role in government restructuring, given his deep financial ties to billions of dollars in federal contracts. They believe the billionaire’s advisory role to Washington is a clear conflict of interest.
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