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The United States Agency for International Development (USAID) is facing an unprecedented crisis. A government watchdog revealed that the agency has lost the ability to track nearly $8.2 billion in unspent humanitarian aid funds. This situation arose after the Trump administration froze foreign aid funds and sidelined USAID staff. The Office of the Inspector General warned that the agency’s oversight of aid has become largely non-functional, severely undermining its ability to ensure that assistance does not fall into the hands of violent extremist groups or get diverted in unstable regions or conflict zones. This breakdown in monitoring puts vulnerable populations at greater risk and raises concerns about the mismanagement of U.S.-funded humanitarian efforts worldwide.
The Trump administration’s actions have significantly impaired USAID’s ability to disburse and protect its humanitarian programs. Hundreds of millions of dollars worth of aid supplies are at risk of spoilage after staff were prevented from delivering them. While the Inspector General noted that USAID’s oversight mechanisms were problematic even before the Trump administration took over, the current situation has exacerbated these issues. At the same time, the government, along with billionaire Elon Musk, has continued to dismantle USAID. The General Services Administration, which manages federal buildings, removed USAID from the lease of its Washington, D.C., headquarters, effectively evicting the agency.
On the same day the lease was terminated, USAID employees were barred from entering their offices. Many workers showed up anyway, only to be turned away by security personnel, federal agents, and officials. Some employees were allowed to collect their personal belongings, but others were not. A man identifying himself as a USAID official told them, “Go home. Why are you here?” The eviction followed a Friday night court order that temporarily blocked a Trump administration directive that would have removed nearly all USAID employees from their positions worldwide. Despite this, some workers continued to face restricted access to the agency’s systems.
Employee unions and advocacy groups have accused the Trump administration of disregarding the court’s temporary injunction. They argue that the administration is taking irreversible steps to dismantle USAID before a final ruling can be made. A hearing on the matter has been scheduled for later in the week. Meanwhile, the Norwegian Refugee Council, one of the largest humanitarian organizations in the world, warned that the U.S. funding cuts are the most devastating in its 79-year history. The group said it would have to suspend programs serving hundreds of thousands of people in 20 countries, including critical water supplies in war-torn Burkina Faso and subsidized bread for starving populations in Sudan.
The Trump administration’s actions are part of a broader effort to reshape the federal government under the guise of cost-cutting and efficiency. Elon Musk, who reportedly leads a government efficiency task force, has been a key player in these efforts. However, USAID has borne the brunt of these initiatives. Both Trump and Musk have criticized the agency’s global work as wasteful and misaligned with the administration’s priorities. Peter Marocco, a Trump appointee now serving as USAID’s deputy administrator, defended the agency’s shutdown in court, accusing employees of deliberate delays and insubordination in response to the funding freeze and program-by-program review.
The impact of these decisions goes far beyond bureaucracy. Humanitarian organizations warn that the damage already done to aid programs will make it nearly impossible to restart many operations without significant additional investment. USAID’s Inspector General also revealed that 90% of the staff in the agency’s Humanitarian Affairs Office have been cut, leaving the agency unable to monitor whether U.S. aid in the Middle East and Central Asia is reaching its intended recipients or being diverted to groups like ISIS or Hezbollah. The consequences of these actions will be felt most acutely by the world’s most vulnerable populations, who are now at greater risk of losing access to life-saving assistance.
