Exposing The Troubled History Of The USAID

A storm of controversy swirls over a relatively unknown federal government agency that doles out billions of dollars in taxpayer funds to foreign countries.  New reporting has unearthed reports stretching over years warning about fraud, waste, sexual abuse and funding linked to terrorists.

President Trump's Department of Government Efficiency (DOGE) ignited the firestorm by uncovering reckless, wasteful spending and a lack of management accountability at the U.S. Agency for International Development.  The president shuttered USAID headquarters, locking out employees.  

USAID Background 

The agency, staffed by more than 10,000 workers, handed out $40 billion in 2023, the last year for which government figures are available. That workforce level does not include contractors.  USAID maintains more than 60 country and regional missions that develop projects to be funded. 

The bureaucracy distributed $42 billion to 130 countries, including Gaza.  In 2022, Congress appropriated an additional $46 billion to be managed partially or wholly by the agency for assistance to Ukraine. Since 2017, the USAID budget has more than doubled. 

An investigation and research by this writer found the troubled agency has a checkered history of a lack of transparency, credibility and a disregard for oversight.  Despite numerous admonishments, USAID continues to operate as if the agency is not answerable to the president or the federal government.

As a recent example, current and former USAID staff revolted when the agency's director Samantha Power voiced support for Israel after the country was attacked by Hamas in October. Many agency employees act as if they are running USAID, accountable only to themselves. 

Raising Red Flags

As far back as 2018, the Government Accountability Office (GAO) and the Inspector General for USAID sounded alarms over the agency's funneling of taxpayer money to outside groups with limited oversight. Not only did the agency ignore the red flags, it doubled down on obfuscation. 

The agency, which boasts it prioritizes diversity, equity and inclusion, gifted United Nations agencies, development banks and foreign-based non-governmental organizations (NGO) with billions to be spread across the globe, including in lawless hotspots, including Sudan, Syria and Haiti. 

These activities, in particular, attracted the attention of the Office of the Inspector General (OIG) and the GAO. The two discovered an appalling lack of oversight by the agency's practice of funneling the money through third parties.  

Here are selected highlights from reports from the Inspector General and the GAO:

• USAID failed to document 519 instances of misconduct for funds transmitted to the UN'S World Food Program.  Instead, the USAID only reported  29 instances of potential misconduct for aid, reflecting non-compliance with the agency's own standards.
• Investigations were hampered by UN agencies to prevent diversion of USAID funds to the terrorist organization Hamas. The OIG also listed its concern that United Nations Relief and Works Agency (UNRA) employees implicated in the October 7 attack on Israel had infiltrated USAID funded organizations. 
• USAID failed to share with the Inspector General information about UN individuals who have been terminated for criminal and serious misconduct.  In 2023, World Health Organization officials were found to have sexually assaulted women and girls while performing USAID-funded Ebola programs in Africa.
• OIG special agents have encountered resistance from foreign-based NGO's when requesting information about individuals alleged to have perpetuated fraud or engaged in sexual exploitation in running USAID-funded programs.
• A GAO report noted the USAID bureaus and missions lack ability to conduct direct oversight in conflict zones to verify the funds are being used for the intended humanitarian purpose.
• Inspectors found the USAID does not have "quality" data to support its $150 billion climate change initiative.  "Specifically, the data was not complete, accurate, accessible or current" the inspectors found. 
• The OIG ferreted out a scheme by a non-governmental organization in South Africa to bilk USAID out of $671,914 after the group submitted false payment claims to the agency.  The OIG cited other examples of fraudulent claims in its 2025 report, including a $2.02 million payment to an  Norwegian aid group. 
• A GAO analysis of the agency discovered the USAID sent money through a cutout organization that ended up funding China's Wuhan Institute of Virology.  To date, even Congress has been able to determine the amount of the funding. 

In its 2025 report, the OIG concluded that "theft and diversion of cash assistance, food, medicine and other commodities frustrates the intent of the United Sates" while undermining the agency's mission of humanitarian assistance. 

These reports are nonpartisan, authored by federal government employees and agencies.  The information has been available to Congress and the executive branch.  Why has there been no action to address the concerns from either political party?  That is the question no corporate media are asking.

A few in Congress have been aware of USAID's pattern of obstructionism. Iowa Senate Republican Joni Ernst revealed how the agency has been "stonewalling" her office for years as she sought documents detailing aid to businesses in Ukraine.  

USAID claimed the information was classified to deny the senator's requests.  After Ernst demanded to speak to the USAID Office of Security, the agency handed over a few documents. She discovered that 5,000 Ukrainian businesses received awards of up to $2 million each. 

DOGE Findings 

DOGE has exposed hundreds of millions of dollars for dubious USAID directed aid:

• $2 million for sex changes and LGBTQ activism in Guatemala.
• $1.5 million to advance DEI in Serbia's workplaces and business communities.
• $6 million to fund tourism in Egypt.
• $70,000 for production of a DEI musical in Ireland.
• $47,000 for transgender operations in Colombia.
• $2.5 million for electric vehicles in Vietnam.
• $32,000 for a transgender comic book in Peru. 
• $2 million for pottery classes in Morocco. 
• $20 million for a Sesame Street workshop in Iraq to promote "inclusion, mutual respect and understanding across ethnic, religious and sectarian groups."
• $45 million to provide food assistance and economic support for Venezuelan migrants in Columbia. 

This reality stands in stark contrast to the growing legacy media stories that have appeared since the scandal broke. They paint a picture of USAID funding for desperate people in third-world countries in need of food assistance and medicine.  There has been no coverage of the OIG and GAO reports.

The media complicity has given cover for Democrats to spend political energy haranguing unelected "billionaire" Elon Musk for the revelations. The oligarchs are ruling Washington, they shout in defiance. Where's the outrage for USAID's wasteful spending of taxpayers dollars? Crickets. 

Democrats are targeting Musk as the villain because they endorse USAID's funding of social issues.  They are furious Musk exposed the foreign aid boondoggles. 

USAID Defenders 

USAID defenders make the case that the DOGE examples of millions of dollars of waste only amount to a fraction of the agency budget. Excusing a "little" misuse of funds is an example of Washington's hubris. Massachusetts Senator Elizabeth Warren reflects the Democrat Party's attitude:

"There is nothing in the constitution that says ordinary Americans have a right to see what we're spending tax dollars on," she said. Actually, Article 1, Section 9, Clause 7 of the Constitution requires the government to publish regular statements about how taxpayer money is spent.

Secretary of State Marco Rubio has made it clear he intends to fold USAID into the State Department, thus ending the agency's autonomous operation.  The secretary wants to continue foreign aid, but with more oversight and funding supporting the administration's objectives. 

Referencing the USAID, the president said "the American's people's money must be spent to advance their priorities, not line the pockets of contractors or to maintain projects that don't work." Typical Trump, overstatement? No, that quote is from 2009 and the president was Barrack Obama.  

No government agency no matter how noble sounding its name or mission has the right to fritter away taxpayer dollars. By defending the indefensible, Democrats are showing they are out of touch with average Americans who expect efficiency, transparency and accountability in their government.