Trump Administration’s Cuts Cripple USAID Oversight of $8.2 Billion

An independent government watchdog reported on Monday that the Trump administration's efforts to weaken the U.S. Agency for International Development (USAID) have severely undermined its ability to properly oversee $8.2 billion in unspent aid. The cuts have left the agency struggling to monitor and manage funds effectively, raising concerns about transparency and accountability in U.S. foreign aid programs.

A report from the USAID Office of the Inspector General revealed that sweeping staff cuts and confusion over aid restrictions severely impacted the agency’s ability to oversee foreign assistance. Although the State Department issued waivers to exempt "life-saving humanitarian assistance" from President Donald Trump's aid freeze, the lack of personnel and unclear guidelines hindered their effectiveness, raising concerns about the proper allocation of U.S. foreign aid.

Trump’s USAID Freeze Halts Billions in Global Aid Programs

Hundreds of USAID programs, worth billions in foreign assistance, came to a standstill after President Donald Trump ordered a freeze on most U.S. foreign aid on January 20, aiming to align it with his "America First" policy.

His administration has also taken steps to dismantle USAID—an agency with over 10,000 staff worldwide—potentially merging it into the State Department. Amid these changes, USAID’s website has been offline for over a week. However, a report from the agency’s independent Office of the Inspector General (OIG) surfaced Monday on the OIG’s website, which remains accessible.

 Aid Freeze, Staff Cuts Cripple USAID’s Humanitarian Efforts

The Office of the Inspector General (OIG) warned that the Trump administration’s freeze on aid and widespread staff cuts have severely impacted USAID’s ability to manage $8.2 billion in unspent humanitarian funds.

The report highlighted that reductions within USAID’s Bureau of Humanitarian Affairs (BHA), combined with uncertainty over foreign aid waivers and restricted communication with aid partners, have weakened the agency’s ability to distribute and safeguard taxpayer-funded humanitarian assistance. These challenges have raised concerns about oversight and the effectiveness of U.S. global aid efforts.

The Office of the Inspector General (OIG) reported that USAID’s oversight mechanisms—already facing challenges—are now “largely nonoperational” due to recent directives and widespread staff cuts under the Trump administration.

Critical USAID programs in certain countries rely on partner vetting and third-party monitoring to ensure that aid reaches its intended recipients and does not fall into the hands of terrorist groups or their supporters. However, with oversight mechanisms severely weakened, the agency’s ability to safeguard humanitarian assistance has been significantly compromised.

Watchdog: USAID at Risk of Funding Terror Groups Amid Oversight Collapse

The Office of the Inspector General (OIG) warned that USAID's weakened oversight leaves it susceptible to inadvertently funding entities or individuals linked to U.S.-designated terrorist organizations.

Most of USAID’s workforce was placed on administrative leave last week, leaving only around 600 staff members to manage global aid operations, according to an internal notice obtained by Reuters.

Although U.S. Secretary of State Marco Rubio issued waivers for “life-saving humanitarian assistance” to bypass President Donald Trump’s aid freeze, aid workers and U.N. officials reported that most programs remain shut down.

The OIG report also highlighted that uncertainty over the scope of waivers and restrictions on communication between USAID’s Bureau of Humanitarian Affairs (BHA) and its aid partners further hindered the agency’s ability to disburse humanitarian assistance.

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