
02/07/2025
USAID - Truth or Fiction
Scott Davis - CISG MEDIA USA
07 February 2025 - Washington, DC
The assertion that USAID (United States Agency for International Development) is a "bloated money laundering organization" is a common narrative among critics but is not supported by mainstream evidence. However, USAID has faced legitimate criticisms regarding inefficiencies, lack of oversight, and potential misuse of funds. Let’s break this down objectively:
USAID is an independent agency of the U.S. federal government responsible for providing foreign aid, humanitarian assistance, and economic development programs worldwide. It was created in 1961 and operates under the guidance of the U.S. Department of State.
Critics argue that USAID has serious problems with:
Bureaucratic bloat: It has a massive bureaucracy that slows down aid distribution.
Lack of oversight: Some funds have ended up in the hands of corrupt governments and NGOs with little accountability.
Questionable spending: Reports of money being spent on ineffective or unnecessary projects.
Ties to political agendas: Critics argue USAID is used as a tool for geopolitical influence rather than pure humanitarian aid.
While USAID itself is not a money-laundering entity, concerns arise due to:
Fraud and waste in contracts: USAID often works with third-party contractors who have been caught misusing funds.
Funding of corrupt governments: There are numerous cases of aid money ending up in the hands of corrupt officials.
NGO funding with little transparency: Some USAID-funded NGOs lack financial transparency, raising concerns about potential misuse.
Afghanistan & Iraq Reconstruction: Billions were allocated to rebuilding efforts, yet many projects failed due to mismanagement, fraud, and corruption.
Haiti Earthquake Relief (2010): USAID was responsible for distributing billions, yet many projects were incomplete or poorly managed.
Ukraine Aid (Ongoing): Some critics suggest a lack of clear oversight on how aid is spent, raising concerns about fraud and political interests.
There is no direct proof that USAID systematically launders money. However:
Some funding has disappeared due to corruption and mismanagement.
Money often ends up benefiting elite political interests rather than the intended recipients.
The lack of accountability fuels allegations that it enables financial corruption.
It provides critical humanitarian aid in disaster zones.
It helps stabilize regions to prevent conflict.
The U.S. uses it as a soft power tool to maintain influence abroad.
Final Verdict: Bloated? Yes.
Money Laundering? No Direct Proof as of yet.
USAID has serious problems, including inefficiency, waste, and a history of funding corrupt entities. While it is not officially a money-laundering organization, the lack of accountability and poor oversight create conditions where fraud and financial abuse are possible.
USAID’s Funding of Media & Journalists
There is documented evidence that USAID has funded media organizations and individual journalists under the guise of promoting “democracy, press freedom, and countering disinformation.” However, these efforts have been widely criticized because they:
Blur the line between independent journalism and government propaganda
Selectively fund journalists and media outlets that align with U.S. political interests
Lack transparency in where the money goes and how it is used
Key Examples:
Latin America: USAID has been caught funding opposition-aligned journalists in countries where the U.S. seeks regime change, including Venezuela and Cuba.
Eastern Europe & Ukraine: USAID has funded media operations in Ukraine to push narratives that align with U.S. foreign policy, raising concerns about bias.
Africa & Asia: Reports indicate that USAID has supported media campaigns that promote specific political candidates or policies under the guise of “democracy-building.”
Why This Is a Problem
Instead of fostering truly independent journalism, USAID funding can create state-aligned narratives.
Media outlets receiving USAID funds have been accused of ignoring corruption in U.S.-friendly regimes while focusing only on opposition leaders.
It creates a credibility crisis—how independent can a journalist be if they receive government money?
One of the most controversial aspects of USAID spending has been its direct and indirect funding of politically connected foundations, including those tied to U.S. politicians like the Clintons.
Key Issues:
USAID has awarded millions to the Clinton Foundation and its affiliates, particularly during Haiti’s earthquake relief efforts (2010). Yet, much of the promised aid never materialized in the form of completed projects.
Lack of accountability: Money was funneled through USAID into the Clinton Foundation and its partners without clear reporting on how funds were spent.
Conflicts of interest: Many USAID-funded projects were managed by donors and allies of the Clintons, raising ethical concerns.
Example: Haiti Earthquake Relief Scandal
USAID committed billions in aid to Haiti after the devastating 2010 earthquake.
A significant portion of this funding flowed to Clinton-connected NGOs and contractors.
Many projects were never completed or poorly managed, while Haitians saw little improvement.
The Caracol Industrial Park, a major USAID-backed project in Haiti, promised tens of thousands of jobs but ended up employing far fewer people at low wages.
Why This Is a Problem
Politically connected foundations receive disproportionate aid, while other organizations doing legitimate work struggle for funding.
No clear auditing or accountability: Many USAID-backed Clinton projects have missing funds or failed results.
It raises suspicions of a pay-to-play system, where political figures benefit from taxpayer-funded aid.
Lack of Oversight: Why Does This Happen?
Congress provides broad funding without demanding detailed accountability.
USAID uses subcontractors and NGOs, making it difficult to track where the money actually goes.
Media outlets and political allies rarely investigate, because many benefit from the funding.
Whistleblowers who expose these issues are ignored or retaliated against.
USAID is not just a foreign aid agency—it is also a geopolitical instrument. The funding of media outlets and politically connected foundations raises legitimate concerns about:
Political favoritism
Conflicts of interest
Taxpayer-funded influence operations
While USAID does fund legitimate humanitarian efforts, its lack of oversight, selective media funding, and connections to political elites fuel accusations of corruption and backdoor money laundering.
One of the most infamous USAID controversies revolves around the Haiti earthquake relief efforts and the Clinton Foundation's involvement.
What Happened?
After the 2010 earthquake, USAID pledged billions for relief and reconstruction.
A significant portion of this aid was funneled through the Clinton Foundation and politically connected contractors.
Despite the massive funding, Haiti saw little real improvement—many promised projects were never completed, and Haitians continued to suffer.
Key Scandals in Haiti Aid
Caracol Industrial Park:Promised to create 60,000 jobs with USAID & Clinton Foundation backing. Delivered fewer than 8,000 jobs—most paying starvation wages. Haitians protested against the project, calling it an economic failure.
Missing Homes Project:USAID gave millions to contractors to build housing for displaced Haitians. Most houses were never built, and those that were built were structurally unsound.
Hillary Clinton’s Brother (Tony Rodham):Received a lucrative gold-mining permit in Haiti, raising serious conflict-of-interest questions.
Where Did the Money Go?
Of the $10 billion pledged for Haiti, very little went to actual Haitian people.
Most money went to:
U.S. contractors
Clinton-connected NGOs
Overhead costs and bureaucratic expenses
This led to allegations that USAID funding was used as a political slush fund rather than genuine humanitarian relief.
USAID has also been caught funding journalists and media outlets to shape narratives in favor of U.S. government interests.
Key Cases:
USAID’s Secret "Twitter for Cuba" (2010s)
USAID created a secret social media network in Cuba (ZunZuneo) to influence political opinions and encourage anti-Castro sentiment.
Disguised as an innocent social app, it was secretly a U.S. government-funded operation designed to spark protests.
The project collapsed after being exposed, and Cuban users were never told the U.S. government was behind it.
USAID’s Influence in Ukraine Media (Since 2014)
USAID has heavily funded Ukrainian media since the 2014 Maidan revolution.
The U.S. has given millions to Ukrainian outlets that align with Western narratives.
Critics argue this has undermined independent journalism and promoted a one-sided pro-Western stance.
Latin America – Funding “Independent” Journalists
USAID has funneled money into anti-government media outlets in Venezuela, Nicaragua, and Bolivia.
Some journalists later admitted they were being paid by the U.S. government, leading to backlash against supposed “independent media.”
Why Is This a Scandal?
USAID funding distorts journalism—media should not be directly funded by a foreign government.
Lack of transparency—taxpayers rarely know which outlets are being funded.
It fuels foreign instability—by backing specific narratives, USAID can help destabilize governments.
USAID has been accused of channeling taxpayer funds into political allies’ nonprofits.
Key Cases:
USAID’s Funding of the Clinton Foundation
From 2009 to 2013, USAID directed millions to programs connected to the Clinton Foundation.
Many projects lacked transparency, and some completely failed.
Critics argue the Clintons used USAID as a personal fundraising arm under the guise of foreign aid.
Obama-Era USAID Funding of Left-Wing NGOs
Under the Obama administration, USAID was accused of funneling money into liberal activist groups, particularly in Central America.
These groups then lobbied for policies aligned with U.S. Democrats, such as pro-immigration advocacy in the U.S.
USAID Money Flowing to Soros-Backed Organizations
Reports indicate USAID has funded Open Society Foundations and other NGOs connected to George Soros.
In Albania, Macedonia, and other Eastern European nations, USAID-backed Soros groups interfered in local elections.
Critics argue this undermines sovereignty and favors U.S.-aligned political elites.
USAID has a history of giving money to corrupt foreign officials, despite knowing the risks.
Key Examples:
Afghanistan & Iraq: USAID poured billions into "reconstruction" in Afghanistan and Iraq. Most of this money disappeared due to fraud and mismanagement. Some funds ended up in the hands of terrorists and warlords.
Ukraine (2022–Present):Billions have been sent to Ukraine via USAID with little transparency.
Reports suggest fraud and misallocation in reconstruction funds.
Some USAID-funded Ukrainian officials bought luxury properties abroad.
While USAID is not a money-laundering operation in the traditional sense, it frequently operates without transparency, funds politically connected elites, and has a track record of inefficiency, waste, and corruption.
USAID has funded failed projects linked to the Clinton Foundation and other politically connected groups.
It has secretly funded media outlets and journalists to push U.S. government narratives.
It has funneled money into corrupt foreign governments and unstable regions with no oversight.
Many USAID-funded projects have resulted in fraud, missing funds, and taxpayer waste.
Should USAID Be Abolished or Reformed?
Critics argue USAID should be abolished because it is an unaccountable bureaucratic black hole.
Others suggest major reforms to introduce strict oversight, prevent political favoritism, and eliminate waste.
The United States Agency for International Development (USAID) has been a significant channel for U.S. foreign assistance since its establishment in 1961. Over the years, USAID's budget and spending have evolved, reflecting changing global priorities and U.S. foreign policy objectives.
Budget Overview
Fiscal Year 2023: USAID managed more than $40 billion in combined appropriations, representing over one-third of the funds provided in the Department of State, Foreign Operations, and Related Programs for that year.
Fiscal Year 2023: USAID distributed nearly $43.8 billion in aid, accounting for about 60% of U.S. foreign assistance. A significant portion of this aid was directed to Ukraine, which received $16.6 billion to support its defense against Russia's invasion and to maintain governmental and societal functions.
Spending by Sector
USAID's expenditures cover a wide range of sectors aimed at promoting global development and humanitarian assistance:
Global Health: In 2023, the U.S. contributed $12.9 billion towards global health activities, including initiatives targeting HIV, tuberculosis, malaria, and COVID-19. USAID plays a pivotal role in managing these funds, particularly through programs like the President's Malaria Initiative and global tuberculosis control efforts.
Economic and Military Assistance: In fiscal year 2020, the U.S. allocated $51.05 billion in economic and military assistance to foreign countries. Of this total, $39.41 billion was spent on economic assistance, with $25.64 billion disbursed by USAID. The remaining $11.64 billion was allocated to military assistance.
Recent Developments
In early 2025, the Trump administration announced plans to restructure USAID, including proposals to merge it into the State Department and reduce its workforce. This move aligns with the administration's "America First" policy and aims to streamline foreign aid to better serve U.S. interests. Critics argue that such actions could undermine U.S. soft power and global humanitarian efforts.
Additionally, a 90-day freeze on most foreign aid was implemented to reassess and eliminate programs deemed wasteful or contrary to U.S. national interests. This pause has raised concerns among international partners and aid recipients about the potential impacts on ongoing development and humanitarian projects.