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July 6, 2026
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Unspent aid worth billions lacks oversight as Trump dismantles USAID, watchdog warns

WASHINGTON— The U.S. Agency for International Development has lost almost all ability to track $8.2 billion in unspent humanitarian aid following the Trump administration’s foreign funding freeze and idling of staffers, a government watchdog warned Monday.

The administration’s fast-moving dismantling of the agency has left oversight of the aid “largely nonoperational,” USAID’s inspector general’s office said. That includes a greatly reduced ability to ensure that no assistance falls into the hands of violent extremist groups or goes astray in unstable regions or conflict zones, the watchdog said.

The Trump administration’s actions have “significantly impacted USAID’s capacity to disburse and safeguard its humanitarian assistance programming,” it said, also citing the risk of hundreds of millions of dollars in commodities rotting after staff was barred from delivering it.

The inspector general, however, also noted that it has “longstanding concerns about existing USAID oversight mechanisms.”

Meanwhile, the administration and billionaire ally Elon Musk continued their unraveling of the aid agency. The General Services Administration, which manages government buildings, told The Associated Press that it had stripped USAID from the lease on its Washington headquarters.

Staffers — some dressed in USAID sweatshirts or T-shirts — were blocked from going upstairs to their offices Monday. Guards, federal officers and officials stopped some from retrieving their belongings.

“Go home,” a man who identified himself as a USAID official told some staffers. “Why are you here?”

The eviction from the building, which USAID had occupied for decades, follows a court late Friday temporarily blocking a Trump administration order that would have pulled all but a fraction of workers off the job worldwide.

Two workers’ groups that sued over the targeting of USAID asked the court on Monday to find the Trump administration in violation of the judge’s order, after some workers were still locked out of USAID’s systems.

The government’s steps suggest it “intends to continue taking potentially irreversible steps to dismantle the agency” before the court can issue a final ruling in the case, the employee associations said. Another hearing is scheduled for Wednesday.

 USAID staffers turned away from offices even after court suspends leave order

Trump and Musk, who runs what is billed as a cost-cutting Department of Government Efficiency, have taken aim at other government agencies. But USAID has been hit hardest, with Trump and Musk accusing the agency’s work around the world of being out of line with Trump’s agenda and wasteful.

A Trump appointee at the heart of the sweeping changes at USAID defended the shutdown of the agency in a court filing Monday, saying Trump officials have been faced with “noncompliance” and “insubordination” from staff.

Peter Marocco, USAID’s recently appointed deputy administrator, submitted an affidavit Monday in the lawsuit brought by employees’ groups.

In it, he accuses USAID staff of stalling and resisting the administration’s funding freeze and what he described as a program-by-program review. Marocco said that made it necessary to pull all but about 600 staff off the job.

Trump signed an executive order Jan. 20 freezing foreign assistance, forcing U.S.-funded aid and development programs worldwide to shut down and lay off staff. Secretary of State Marco Rubio said he had sought to mitigate the damage by issuing a waiver to exempt emergency food aid and “life-saving” programs.

But USAID officials and aid groups say neither funding nor staffing have resumed to allow even the most essential programs to start work again.

The Norwegian Refugee Council, one of the largest humanitarian groups, called the U.S. cutoff the most devastating of any in its 79-year history. It said Monday that it will have to suspend programs serving hundreds of thousands of people in 20 countries.

“The impact of this will be felt severely by the most vulnerable, from deeply neglected Burkina Faso, where we are the only organization supplying clean water to the 300,000 trapped in the blockaded city of Djibo, to war-torn Sudan, where we support nearly 500 bakeries in Darfur providing daily subsidized bread to hundreds of thousands of hunger-stricken people,” the group said in a statement.

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