You spelled it out. 1% of the budget is a very large cookie jar if you and your cronies hands live in it.It represents only 1% of the overall budget. So why are they picking this hill to die on?
Now, one would ask, why is Trump picking this when it won't impact the overall budget by much. To which I would answer, you have to start somewhere. You start getting enough $60 billion and it adds up.
So what is so important about this that democrats are willing to die on the hill?
Is it because it is a source of their money laundering and using the funds to kick back to democrat campaigns?
USAID sends money to NGOS and then NGOS send money to democrats. Taxpayer money funds campaigns.
The late congressman Everett Dirksen once commented "a billion here, a billion there and pretty soon you're talking about real money". And this was back in the 60s when the deficit and debt was miniscule compared to now.
Elon is attacking the problem the only sensible way. Taking this long journey beginning with single steps. It's how you eat an elephant, one bite at a time.