The United States Agency for International Development (USAID) faces an uncertain future as the second Trump administration, through the Department of Government Efficiency (DOGE), conducts a comprehensive review that could lead to the agency’s complete shutdown, Fox News reported.
The review of USAID, an agency established during the Kennedy administration to provide economic aid to foreign nations, follows years of allegations of financial mismanagement and corruption.
Elon Musk, the billionaire tech entrepreneur and head of DOGE, who is leading initiatives to cut government spending, said in an audio message on X on Sunday night that “the process of shutting down USAID is underway” and that President Donald Trump has endorsed the decision.
“I reviewed the entire situation with him in detail, and he agreed that we should close the agency. I even asked him multiple times, ‘Are you sure?’ and he said, ‘Yes,’” Musk stated.
On Monday, hundreds of USAID employees reported losing access to the agency’s computer systems, while its headquarters in Washington was reportedly closed.
Allegations of Financial Misuse
In recent years, USAID has been embroiled in controversies over alleged funding of terrorist organizations, financial transfers to Chinese institutions, and suppression of negative findings in its reports, according to Fox News.
Senator Tom Cotton (R-Ark.) accused USAID in October 2024 of “likely misappropriation” of over $1 billion in humanitarian aid sent to Gaza. He claimed the funds were redirected to Hamas, alleging that USAID continued collaborating with the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) despite evidence of its links to Hamas.
The Trump administration cut off funding to UNRWA in 2018, while President Joe Biden imposed a one-year suspension of funding to the agency in March 2024.
Additionally, in November 2024, Syrian national Mahmoud Al-Hafyan was indicted for diverting more than $9 million in U.S. humanitarian aid to the al-Qaeda-affiliated terrorist group Jabhat al-Nusra.
A 2023 investigation by the Government Accountability Office (GAO) found that USAID and the National Institutes of Health had transferred funds to U.S. universities and NGOs, which then routed money to Chinese institutions, including the Wuhan Institute of Virology.
Marco Rubio Now Leads USAID
Secretary of State Marco Rubio announced Monday that he is now acting director of USAID, emphasizing that the agency must align with U.S. foreign policy objectives.
“USAID is not a global humanitarian organization. This is American taxpayers’ money, and our responsibility is to ensure it serves U.S. interests,” Rubio stated.
Following his appointment as Secretary of State on January 20, the State Department temporarily suspended all foreign aid funded through USAID pending a full program review.
Soros-Linked Institute Received $270 Million from USAID Over 15 Years
The U.S. government has allocated more than $270 million to the East-West Management Institute, an organization affiliated with George Soros’ Open Society Foundations, over the past 15 years, according to data from USASpending.gov.
An additional $90 million was obligated to the institution under multiple contracts, the data shows.
According to its reports, the primary sources of funding come from USAID and the U.S. State Department. Programs include judicial reform, legal aid, and rule of law initiatives in countries such as Albania, Armenia, Cambodia, and Georgia, as well as civil society training in Kyrgyzstan and Uganda.
The Anti-Corruption Action Center, another Soros-linked entity, also lists USAID as its largest donor, receiving 20.7% of its funding.
The funding has sparked backlash, with critics accusing USAID of acting as a “personal piggy bank” for Soros, who is known for his role in the collapse of the Eastern Bloc and alleged interference in domestic affairs. / BV
