The Trump administration's move to dismantle the U.S. Agency for International Development (USAID) has severely weakened oversight of $8.2 billion in unspent foreign aid, according to a report by the agency's Office of the Inspector General (OIG).
Following Trump's January 20 freeze on most U.S. foreign aid to align with his "America First" policy, hundreds of programs worldwide were halted. Staffing reductions, particularly in USAID’s Bureau of Humanitarian Affairs (BHA), have crippled operations, leaving critical oversight mechanisms nonfunctional. The OIG report warns that USAID’s inability to monitor aid effectively raises the risk of funds reaching unintended recipients, including groups linked to terrorism.
Despite U.S. Secretary of State Marco Rubio issuing waivers for “life-saving humanitarian assistance,” aid workers and U.N. officials report that most programs remain inactive due to confusion over the scope of permissible aid. The State Department has not responded to requests for comment.
The administration has proposed folding USAID into the State Department, and most of its workforce was placed on administrative leave, with only 600 employees remaining active. This has further hampered efforts to distribute and safeguard taxpayer-funded aid.
USAID programs typically rely on partner vetting and third-party monitoring to prevent misuse of funds, but the drastic cuts have made oversight nearly impossible. The OIG warns that the current situation leaves USAID vulnerable to inadvertently funding entities associated with U.S.-designated terrorist organizations.
With USAID’s website down for over a week, transparency remains a concern. The report underscores how staffing cuts, policy uncertainty, and aid freezes have effectively paralyzed the agency’s ability to fulfill its humanitarian mission.