⚡ Breaking: Elon Musk, during an hourlong Spaces conversation on X that began just after midnight this morning, said President Trump has "agreed" to shut down the U.S. Agency for International Development (USAID), which Musk called "beyond repair" — "a bowl of worms" with no apple.

• "We're shutting it down," Musk said. Trump, talking to reporters last night, suggested a final decision hasn't been made. He said USAID is "run by radical lunatics. And we're getting them out, and then we'll make a decision."
• Shortly before 1 a.m. ET today, "agency employees in Washington got an unusual staff-wide email telling them to work from home on Monday rather than come into the headquarters," the N.Y. Times reports (gift link). Headquarters employees have been told to attend a staff meeting tomorrow "at which they are expecting to be informed of a significant reduction in the workforce," The Times adds.

It's just the latest example of Musk and his cost-slashing allies taking a hammer to the massive bureaucracy that staffs the U.S. government — and a scalpel to any senior officials who dare put up a fight, Axios' Zachary Basu and Marc Caputo write.

• Why it matters: Musk isn't the only force driving the Trump administration's escalating purge of civil servants. But his fingerprints are everywhere, and his methods are unlike anything the federal government has ever seen.

🔎 Zoom in: Musk and his lieutenants — many of them Silicon Valley transplants, some as young as 19 — have been tied to a series of high-profile departures and ousters at the top of key federal agencies.

• The Treasury Department's highest-ranking career official announced his retirement Friday after a dispute with Musk allies who sought access to a sensitive system for government payments, The Washington Post scooped.
• By late Friday, Musk's allies at the Department of Government Efficiency (DOGE) had been granted full access to the payment system by newly confirmed Treasury Secretary Scott Bessent, according to the N.Y. Times.

The pattern repeated itself at the U.S. Agency for International Development (USAID) — which has become the epicenter of a vicious debate over foreign aid — openly defying a congressional statute.

• On Saturday, two top security officials also were put on leave after trying to stop Musk allies from physically accessing USAID headquarters and personnel files, including classified information.

Behind the scenes: So far, the White House appears pleased with Musk's foray into the inner workings of the government, seeing his efforts as aligned with Trump's broader goals of disrupting D.C.'s status quo.

• "Elon's top interest outside of DOGE is making sure the president's orders are acted upon," a senior White House official told Axios. "Elon is the ultimate command-and-control guy. He's making sure there's a sense of urgency in the agencies."

🥊 Reality check: Political risks are inherent in Musk's whirlwind takeover of federal agencies, especially when they intersect with his business interests.

• Democrats have accused Musk of pressuring former FAA head Mike Whitaker to resign on Jan. 20 over $600,000 in fines the agency levied against Musk's SpaceX.
• Whitaker's departure left the FAA without a leader during Wednesday night's in-air collision near Reagan National Airport — the deadliest U.S. air disaster since 2001. Trump named Chris Rocheleau as FAA acting administrator the next day.

👀 What we're watching: Musk paid a visit last week to what's likely to be his next target: the General Services Administration, which oversees thousands of government leases as part of its massive budget.

• "Deleted," Musk responded bluntly to an X post highlighting the billions of dollars and thousands of federal workers under GSA's control.

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When President Trump suggested at a Mar-a-Lago dinner with Canadian Prime Minister Justin Trudeau on Nov. 29 that Canada should become the 51st state, some guests thought he was joking, quipping or trolling.

• But Trump keeps saying Canada should buckle. He declared it again yesterday, less than 16 hours after announcing tariffs on the United States' northern neighbor.

Why it matters: At first, lots of people also thought Trump was joking about acquiring Greenland from Denmark. But Secretary of State Marco Rubio confirmed after the inauguration: "This is not a joke."

🇨🇦 Trump's annals of Canadian annexation:

• At the Mar-a-Lago dinner, when Trudeau raised concerns that Trump's threatened tariffs would damage Canada's economy, Trump "suggested to Trudeau that Canada become the 51st state, which caused the prime minister and others to laugh nervously," Fox News reported.
• Truth Social on Dec. 18: "Many Canadians want Canada to become the 51st State."
• Mar-a-Lago news conference on Jan. 7: Trump suggested he could use "economic force" to make Canada the 51st state.
• Truth Social yesterday: "We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? ... We don't need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use. Without this massive subsidy, Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!"

President Trump's bombshell tariff strike on Canada — which could plunge our northern neighbor into recession — has already united Canadians in indignation, Axios' Dave Lawler writes.

• Why it matters: Aided by a 25% tariff (10% on oil), Trump is proving that even the closest of friendships can turn frosty.

Neither President Trump's rationale for the tariffs, nor his preferred outcome — Canada's annexation as the 51st U.S. state — make much sense to Canadians.

• One sign of that sentiment: Canadian sports fans have started booing the U.S. national anthem.
• Another: Canada's previously Trump-friendly opposition leader and likely future prime minister, Pierre Poilievre, demanded yesterday that Canada "Retaliate with dollar-for-dollar tariffs," "defend our sovereignty" and "never back down" to Trump.

🧮 By the numbers: Trump justified the tariffs on Canada and Mexico on national security grounds — namely that migrants and fentanyl are pouring across the northern border.

• But less than 1% of fentanyl seized in the U.S. last year entered through Canada.
• The number of undocumented migrants detained at the U.S.-Canada border has been rising, but only to around 6% of all such encounters reported by Customs and Border Patrol since 2022.

Particularly galling for Canadians: Trump invoked national security to invoke 10% tariffs on a U.S. adversary, China, and 25% on arguably its closest ally.

• Canadian Prime Minister Justin Trudeau declared more than $100 billion in retaliatory tariffs in a televised address on Saturday night.

🔮 What's next: Trump plans to speak with Trudeau and Mexican officials today.

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Bret Baier, Fox News chief political anchor, will sit down with President Trump for a pretaped interview at Mar-a-Lago that'll air during the network's Super Bowl pregame show, Axios' Sara Fischer writes.

• Why it matters: The four biggest U.S. broadcasters — Fox, NBC, CBS and ABC — air the Super Bowl on a rotating schedule. Trump's first Super Bowl back in office coinciding with Fox's broadcast this year is fortuitous, given the president's friendly relationship with the network.

The tradition of presidents being interviewed during the Super Bowl pregame show by journalists from the game's host network goes back to 2004. Trump upended the tradition by skipping the pregame interview with NBC in 2018.

• Former President Biden skipped pregame interviews for the past two years. He opted out of an interview with Fox News in 2023 and CBS News in 2024.

👀 What to watch: The Super Bowl is expected to drive big ratings for Fox. The network has sold out its Super Bowl advertising inventory, with nearly a dozen spots selling for a record $8 million.

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Gen Z men think they need to earn about 15% more to be "financially successful" than young women do, Axios' Ben Berkowitz writes from a study ($) by youth research organization YPulse.

• Why it matters: Even at a young age, the gender wage gap is driving very different perceptions of need and success.

Male respondents to the survey estimated, on average, that they'd need a salary of $69,500 a year to feel successful.

• That's almost 16% more than the $58,600 average response from women.

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Secretary of State Marco Rubio told Panama officials yesterday that Chinese influence over the Panama Canal must be curbed or the U.S. will take retaliatory actions, Axios' Barak Ravid writes.

• Why it matters: Rubio's warning to Panamanian President José Raúl Mulino and Foreign Minister Javier Martínez-Acha is another pressure point on the country since President Trump said he intended to regain control of the Panama Canal.

The trip to Panama is Rubio's first abroad since being sworn in as secretary of state.

🎨 The big picture: Since winning a second presidential term last November, Trump has tripled down on his demands regarding the Panama Canal, and hasn't ruled out using military force to obtain control of it.

• His demands include U.S. ships paying lower rates to use the canal — after claiming that Panama charges American ships more than other nations.
• Trump's complaints are partially based on the fact that a Hong Kong-based company has a contract for running the canal, which has been under Panama's control since 1999.

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In the final pages of his new memoir, "Source Code" (out tomorrow), Bill Gates acknowledges something those around him have long assumed: If he were being raised today, he'd be diagnosed with autism spectrum disorder.

• Why it matters: Gates tells Axios' Ina Fried he hopes kids like him will benefit from his sharing that part of himself.

"I think kids [on the autism spectrum] should think of it as a strength and something they need to acknowledge to themselves and think about: OK, how do you draw on it as a strength or and be proud of what you're good at?" Gates said during a wide-ranging interview.

• "I think the world is getting a little better about this. Maybe 10 or 15 years ago, it wasn't as good about this. But I think acknowledging that might be helpful to people."

🔎 Between the lines: Gates said he knew he was wired differently than his peers, even if he didn't have words to describe it.

• "I always knew I was different in ways that confused people in terms of my energy level and intensity, and going off and just studying things," Gates said.
• "It's a little confusing when you're a kid — that you're different, or people react to you in some ways, or your social skills, you're miscuing on, on various things."

🔬 Zoom in: Gates credits his mom for pushing him to develop his social skills and encouraging him to talk to adults. "I remember not really liking it, but that was what she wanted me to do," Gates said.

"I was lucky I wasn't pushed to the side in any way ... I definitely think my parents — maybe somewhat unintentionally, because there was no diagnosis. But the way they would explain things to me or push me to socialize was very helpful."

Yes, but: Gates said he wasn't thrilled the first time he was asked whether he might have autism.

• "I remember the first time somebody said to me: 'Are you on the spectrum?'" Gates said. "It was like 25 years ago. I remember thinking: What the hell? What the hell? I run a goddamn company. [Laughter.] And then I realized: Well, actually, it's probably true. I mean, the spectrum thing is confusing."

Keep reading ... Gates on coding & AI ... Steve Jobs rivalry.

GOBBLER'S KNOB, Pa. — Punxsutawney Phil may get skewered for his iffy weather predictions. But his parties don't miss, Axios Pittsburgh's Chrissy Suttles writes.

• Why it matters: 40,000+ visitors gathered yesterday to celebrate western Pennsylvania's prophetic groundhog and watch as he declared six more weeks of winter.

The legendary woodchuck ascends from his stump around 7:30 a.m. on Groundhog Day to give his forecast. True believers poured into Gobbler's Knob at 3 a.m. when it opened. Some lined up for shuttles at 9 p.m. the night before.

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The fifth time was the charm. Beyoncé's country crossover took her to the top of the Grammys in LA last night: She finally won Album of the Year with her genre-bending epic "Cowboy Carter," Axios Nashville's Adam Tamburin writes.

• Beyoncé dedicated her win to Linda Martell, the first Black woman to play the Grand Ole Opry. "I hope we just keep pushing forward, opening doors," Beyoncé said.

Between the lines: The album was inspired in part by the frosty reception Beyoncé got when she performed at the CMA Awards with The Chicks in 2016.

• "I'd like to thank all of the incredible country artists that accepted this album," Beyoncé said. "I think sometimes genre is a code word to keep us in our place as artists. And I just want to encourage people to do what they're passionate about."

"Cowboy Carter" was also named Best Country Album. Beyoncé looked shocked when she accepted that trophy from Taylor Swift.

🎤 Beyoncé by the numbers: She's the first Black woman to win Album of the Year in 26 years, since Lauryn Hill's "The Miseducation of Lauryn Hill." Before her: Natalie Cole and Whitney Houston. That means Beyoncé is only the fourth Black woman to win Album of the Year at the Grammys.

• "Cowboy Carter" is the first country album to take the top award since Kacey Musgraves' "Golden Hour" in 2019.
• The superstar is both the most awarded and nominated artist in Grammy history.
• The 11 nominations for "Cowboy Carter" tied Michael Jackson's "Thriller" for the most for a single album. (AP)

More photos ... List of winners ... Surprise moments.