The U.S. Agency for International Development (USAID) has lost nearly all ability to track $8.2 billion in unspent humanitarian aid. A government watchdog warned that the Trump administration’s foreign funding freeze and staff reductions have crippled oversight.
“The agency’s ability to monitor aid is largely nonoperational,” USAID’s inspector general reported. The agency now struggles to prevent funds from reaching violent groups or being lost in unstable regions.
The administration’s rapid changes have disrupted USAID’s ability to disburse and secure aid programs. The inspector general said blocked staff from delivering supplies could lead to waste.
Aid shipments worth hundreds of millions of dollars remain undelivered. Some commodities may expire before reaching those in need.
Oversight issues within USAID existed before these recent changes. The inspector general had already raised concerns about tracking and monitoring weaknesses.
“USAID’s internal controls were flawed before, and now they are nearly nonexistent,” the report said. The freeze on funds has worsened longstanding problems with accountability.
The Trump administration has defended its actions, citing concerns about aid mismanagement. Officials argue that foreign assistance must align with national interests.
Critics say the administration’s decisions have left vulnerable populations without essential aid. They warn that halting humanitarian programs could worsen crises worldwide.
The disruption has also affected USAID’s physical presence in Washington, D.C. The General Services Administration (GSA) has removed USAID from the lease on its headquarters.
“The agency is being dismantled piece by piece,” a former USAID official said. The loss of office space could further limit USAID’s ability to coordinate aid efforts.
Billionaire Elon Musk has supported the administration’s push to restructure foreign aid programs. His involvement in the agency’s changes has sparked debate over private influence in government operations.
USAID employees have expressed concern about their ability to manage existing aid commitments. The agency is responsible for delivering assistance to crisis zones worldwide.
Congressional leaders are reviewing the impact of the funding freeze. Lawmakers from both parties have requested more transparency on USAID’s status.
“The American people deserve to know where their tax dollars are going,” a senator said. Some members of Congress are pushing for hearings on the agency’s oversight failures.
International organizations have also reacted to the crisis. Groups relying on USAID funding are struggling to maintain operations.
The funding freeze has affected humanitarian missions in conflict zones. Some aid organizations are seeking alternative sources of support.
The watchdog report warns of further risks if oversight is not restored. The agency’s inability to track aid increases the chances of fraud and misuse.
Aid workers in the field say delays have left many without food, medicine, and shelter. The lack of funding has slowed emergency response efforts.
“The situation is worsening by the day,” a relief worker said. Without proper oversight, aid distribution remains uncertain.
The Trump administration has not indicated if or when funding will resume. The future of USAID’s humanitarian programs remains unclear.
The agency’s restructuring has raised concerns about the long-term direction of U.S. foreign aid. Some fear that reduced oversight will lead to permanent program cuts.
Efforts to restore tracking systems could take months. The ability to recover lost oversight depends on staffing and funding decisions.
The situation continues to develop as lawmakers and aid groups push for action. The next steps will determine the fate of billions in humanitarian assistance.