At USAID, Waste and Abuse Runs Deep

TLDR

This analysis debunks a White House press release criticizing USAID waste. USAID manages $72B in foreign aid across 100+ countries under congressional oversight. Claims about a Serbian DEI program were inaccurate, and the agency is currently under a 90-day assistance freeze, affecting global operations and staffing.

The press release by the White House about waste at the United States Agency for International Development (USAID) contains significant misstatements and inaccuracies.

USAID operates under congressional oversight and manages approximately $72 billion in foreign assistance across more than 100 nations, representing less than 1% of the total U.S. budget.

Regarding the Serbia DEI Program, the $1.5 million figure is inaccurate. The actual program is $2 million and focuses on economic development and workplace integration. The program aims to improve employment opportunities and business development in Serbia through 2025.

USAID Core Operations:

• USAID was established in 1961 during the Cold War to counter Soviet influence
• The agency operates under the Foreign Assistance Act with congressional authorization
• Programs focus on global health, poverty reduction, emergency relief, and democratic institution building

Current Status (as of the EO):

The agency is currently under a 90-day freeze on foreign assistance implemented by the Trump administration. This has resulted in:

• Suspension of thousands of programs globally
• Furloughs and layoffs of contractors
• Closure of Washington headquarters
• Deactivation of agency website and social media

Financial Context:

Ukraine received the largest portion of aid in FY2023 at $16 billion, followed by Ethiopia at $1.7 billion. These allocations were made through established congressional oversight processes.

Agency Management:

Secretary of State Marco Rubio has indicated that programs are being reviewed to ensure they contribute to U.S. safety, strength, and prosperity. The review process aims to evaluate program effectiveness rather than eliminate the agency entirely.

Questionable Sources:

This press release unprecedently cites:

• The Daily Mail
• The Daily Caller
• The Washington Examiner
• Breibart

as credible news sources.

The press release’s characterization of USAID as “unaccountable” is contradicted by the existence of congressional oversight, public reporting requirements, and regular program evaluations.

ACTIONS

• 2025-02-03: Marco Rubio Says He Now Runs U.S.A.I.D. as Staff Are Blocked From Systems — Secretary of State Marco Rubio announced he had taken over as acting administrator of the U.S. Agency for International Development (USAID), an agency that had functioned independently for over 60 years, amid drastic changes including suspended officials and hundreds of employees locked out of systems. This takeover, part of the Trump administration’s efforts to reduce government spending led by Elon Musk, has sparked protests from USAID employees and criticism from Democrats who argue the shutdown is illegal since Congress created and continues to fund the agency.
• 2025-02-03: Congressional Democrats denied entry to USAID building — Congressional Democrats, including Senators Van Hollen and Schatz and Representatives Raskin and Connolly, were denied entry to the USAID headquarters during a protest against Trump’s reported move to shut down the agency and deny staff entry to the building. The lawmakers were told the office was closed and employees were instructed to telework, with a similar incident occurring days later when Democratic lawmakers were also blocked from entering the EPA headquarters.
• 2025-02-03: Secretary of State Marco Rubio empowers Pete Marocco to run USAID — Secretary of State Marco Rubio has empowered Pete Marocco to run USAID and review all of its work, with potential plans to suspend or eliminate programs as part of the Trump administration’s efforts to dismantle the agency. USAID employees were ordered to work remotely after Elon Musk announced that he and President Trump were in the process of shutting down the agency, which has been the U.S. government’s main international humanitarian and development arm since 1961.

LITIGATION

• 2025-02-10: 1:25-cv-00400 — AIDS Vaccine Coalition and the Journalism Development Network, Inc., Public Ctiizen, sued the State Department, USAID, Secretary Rubio, OMB, OMB Director Russ Vought, and President Trump for the actions taken the dismantle USAID and foreign aid freeze. The plaintiffs argue that the aid freeze and stop work order violate the separation of powers, the Take Care Clause, and the Administrative Procedures Act.
• 2025-02-06: 1:25-cv-00352 — The American Foreign Service and the American Federation of Government Employees, represented by Public Citizen and Democracy Forward, sued President Trump, the State Department, USAID, Secretary of State Rubio, and Secretary of Treasury Bessent. The plaintiffs are seeking injuctive relief for the actions taken by the Trump administration to dismantle USAID, including the stop work order and laying off USAID contractors. The suit allege these actions violate the seperation of powers, the Take Care Clause, and the Administrative Procedure Act.

REFERENCES

• 2025-03-14: Johns Hopkins laying off more than 2,000 workers after dramatic cut in USAID funding | CNN Politics — Johns Hopkins University announced it will cut over 2,000 jobs due to an $800 million funding loss from USAID amid the Trump administration’s efforts to downsize the federal government. The layoffs include 1,975 international positions across 44 countries and 247 U.S. jobs, mostly in Baltimore.