Where does legitimate government expenditure end and corruption begin? Drawing that distinction is becoming increasingly difficult.
According to almost daily reports from the new Department of Government Efficiency (DOGE), it’s becoming clear that whatever level of fraud and abuse you thought was happening within the federal government is a low estimate.
Late last week, DOGE started poking around USAID, a federal quasi-agency set up by executive order under the administration of President John F. Kennedy in 1961. Originally, USAID intended to advance U.S. foreign policy objectives by promoting economic growth, agriculture, and health in developing countries during the Cold War. It aimed to foster long-term economic and social development in partner countries, thereby countering communist influence and promoting democratic values.
In other words, USAID intended to let dollars talk as a means of diplomacy and covert operations.
Fast-forward decades later and the entire thing has become a slush fund for anti-American propaganda, politicians, and billions of dollars in wasted spending around the world. This is an agency, mind you, with a budget larger than the State Department and the CIA.
The situation is such a cesspool that Elon Musk, heading the DOGE operation, announced that President Trump has agreed to shut the agency down, according to The Hill:
Tech billionaire Elon Musk said early Monday that President Trump has “agreed” to shut down the U.S. Agency for International Development (USAID), which administers billions of dollars of humanitarian, development and security assistance in more than 100 countries.
“None of this could be done without the full support of the President, you know. And with regard to the USAID stuff, I went over it with him in detail, and he agreed that we should shut it down,” Musk said in an X Spaces discussion.
“And I actually checked with him a few times. I said, ‘Are you sure?’ He’s like, ‘Yes,’” Musk added. “So we’re shutting it down.”
Musk said in the discussion — which included former DOGE co-leader Vivek Ramaswamy and Sen. Joni Ernst (R-Iowa) — that there was no hope for USAID to improve and instead they would be forced to shutter the agency.
As you can imagine, any bureaucracy sitting on billions of dollars is ripe for corruption and abuse. This is not a new topic, the corruption at USAID has been documented for years as detailed by Elizabeth MacDonald on X:
Major fraud and waste problems at USAID uncovered by IG, GAO & Congress for years as President Trump seizes control for review of abuses:
Contractor Fraud: Multiple instances of USAID contractors involved in fraudulent activities. For example, the Louis Berger Group paid over $69 million in 2010 to settle charges related to overcharging and false reporting for contracts in Afghanistan and Iraq.
Mismanagement and Oversight Failures: In 2021, Foreign Policy reported whistleblower complaints at USAID unit U.S. African Development Foundation (USADF) alleging misuse of funds, fraudulent spending, and conflicts of interest. An independent audit in 2016 reportedly found USAID selling more than half a billion dollars worth of agency cars, properties and real estate assets without any proper accounting of where the money.
Corruption in Humanitarian Aid: USAID has been accused of repeatedly, not stopping aid funds and materials like drugs and food intended for humanitarian relief stolen and sold on black markets.
Sexual Exploitation and Abuse: There’s been an acknowledgment of the need for better safeguards against sexual exploitation and abuse in USAID programs, with recommendations for improved reporting and tracking mechanisms for allegations.
Public and Congressional Scrutiny: Senators and other lawmakers have occasionally pushed for investigations into USAID’s operations due to allegations of fraud and mismanagement. This includes urging investigations by the Government Accountability Office (GAO) and USAID’s Office of Inspector General.
The blowback among the bureaucracy within USAID has been swift but the dam is beginning to crack according to reports:
USAID Senior Officials put on Leave after Physically Trying to stop DOGE from accessing Agency Systems
Two USAID officials, John Voorhees and his deputy, were put on leave late Saturday night after refusing to allow DOGE members access to USAID systems. The DOGE members threatened to physically call the police after being refused entry. They were trying to access the security and personnel files.
Federal Officials are concerned that Trump is trying to fold USAID into the US State Department in an effort to cut Government corruption and bloat.
USAID employs approx. 10,000 people, excluding contractors, with 2/3 of them overseas. 60 USAID members were already put on leave last week after trying to circumvent President Trump’s executive order on stopping foreign aid.
If the President cannot control agencies within the executive branch’s purview then elections are meaningless. Anyone within USAID and other parts of the government refusing lawful instructions should be dismissed.
Here’s Musk on a Spaces broadcast late Sunday night describing what’s happening within USAID alongside Sen. Joni Earnst and Vivek Ramaswamy:
🚨 JUST RECORDED: DOGE & Mars
Elon Musk, Senator Joni Ernst, and Vivek Ramaswamy discuss government waste, inefficiency, and the push for reform in this recorded X Space.
They break down spending cuts, fraud in agencies like USAID, and the role of federalism and deregulation in… pic.twitter.com/vRSDkBSb1G
— Herbert Ong (@herbertong) February 3, 2025
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