Published On: Fri, Feb 7th, 2025
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BBC funding crisis after Elon Musk cuts £2.6m US aid to British broadcaster charity | World | News

The BBC has responded after a withdrawal Elon Musk withdrew “insane” funding the United States had been sending to the boradcaster.

A branch of the corporation BBC called Media Action – its international charity – supports local media across the globe serving “people most in need”.

USAid, a US agency that distributes foreign aid around the world, is the second biggest donor to the BBC’s charitable arm.

President Donald Trump has said that he wants to make savings in expenditure, and has put the tech billionaire Mr Musk in charge of a new body – the Department for Government Efficiency (DOGE).

Last weekend, Mr Musk was clear that he is “shutting down” USAid meaning the BBC’s funding could be at risk.

Mr Trump has ordered a 90-day pause in US foreign spending, while the administration reviews the funds.

The BBC said on Tuesday: “A free press is essential to freedom and democracy – and 75% of countries around the world do not have a free press.

“BBC Media Action supports local media around the world to deliver trusted information to people most in need.

“Like many international development organisations, BBC Media Action has been affected by the temporary pause in US government funding, which amounts to about 8% of our income in 2023-24.”

The action group is active in 30 countries, including states in Africa, the Asia Pacific, the Middle East and Europe, the BBC says, and reaches more than 100 million people each year.

USAID donated £2.6million, according to a 2024 report. This made it the charity’s second-largest donor for that financial year.

The corporation made sure to highlight that the organisation is separate from its news department. Officials added: “We’re doing everything we can to minimise the impact on our partners and the people we serve.

“As the BBC’s international charity, we are completely separate from BBC News, and wholly reliant on our donors and supporters to carry out our work.”

Mr Musk weighed in on his social media platform X on Friday.

He wrote: “Why should American taxpayer dollars fund the British Broadcasting Corporation!? That’s insane.”

On Monday, US Secretary of State Marco Rubio accused USAID bosses of “insubordination”, and announced that he was now its acting head.