Millennium Challenge Corp

The Trump administration has begun dismantling a small independent agency that aids the economic development of poor but stable nations, according to five people familiar with the matter.Employees for the agency, the Millennium Challenge Corporation, were told in an email that they would be offered early retirement or deferred resignation after visits last week from Elon Musk’s government cost-cutting team, according to a copy reviewed by The New York Times.“We understand from the DOGE team there will soon be a significant reduction in the number of MCC’s programs and relatedly the agency’s staff,” read an email sent to staff on Tuesday by the acting chief executive. Staff members were given until Tuesday to decide whether to accept an offer to step down or have their employment terminated as soon as May 5, according to the email.The White House declined to comment Wednesday on the planned cuts at the agency.Mr. Musk’s team, known as the Department of Government Efficiency, has in recent weeks moved to gut several federal agencies and entities that work on foreign aid and development projects. That includes the U.S. African Development Foundation and the U.S. Agency for International Development, which would shrink to just the legally required 15 positions after employing about 10,000 people before the start of the Trump administration.The Millennium Challenge Corporation is much smaller — roughly 300 employees, mostly in Washington, with about 20 people in offices overseas. But like U.S.A.I.D., it is slated to be reduced to the minimum required by law, according to the people familiar with the matter, who spoke on the condition of anonymity to speak freely about internal conversations.The agency, established by Congress in 2004, was conceived by President George W. Bush as a way to aid poor nations while holding them accountable for using U.S. funds responsibly. The agency’s annual budget is a relatively modest $1 billion. It provides grants directly to foreign governments for development projects, including ones aimed at limiting the influence of China in Asia and Africa.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More