Fact-Check: Were Trump and Musk’s Claims About USAID Spending Accurate?

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Key Takeaways

President Trump’s administration aims to dismantle USAID; key actions include administrative leaves for 2,000 employees starting February 2025.
Only one criticized project, a $1.5 million DEI initiative in Serbia, was actually funded by USAID; others involved State Department.
Congressional approval is required to abolish USAID; over 100 House Democrats oppose unilateral action, complicating Trump’s proposed changes.

The U.S. Agency for International Development (USAID) has recently been at the center of a major controversy that has drawn criticism and scrutiny from leading political figures, including President Donald Trump and billionaire entrepreneur Elon Musk. Efforts to reshape or potentially dismantle USAID have raised alarm among policymakers, workers at the agency, and international stakeholders. A deeper analysis of the claims made about USAID’s activities reveals inconsistencies that highlight the complexity of this issue.

The Push to Reform USAID: Key Developments

Fact-Check: Were Trump and Musk’s Claims About USAID Spending Accurate?

USAID was established in 1961 with the goal of supporting U.S. foreign policy by providing development assistance to economically struggling nations and those in crisis. The agency has long been an instrumental force in reducing poverty, improving health, and fostering economic growth in developing countries. In fiscal year 2023 alone, USAID managed a budget of approximately $40 billion, which equaled less than 1% of the total federal budget, according to the Congressional Research Service.

However, recent actions by President Trump’s administration suggest a desire to significantly curtail or eliminate USAID. In January, the newly created Department of Government Efficiency (DOGE), led by Elon Musk, turned its attention to the agency. On February 2, Musk tweeted on his social media platform X: “USAID is a criminal organization. Time for it to die.” His statement was met with widespread criticism from advocacy groups and political leaders.

Subsequently, Secretary of State Marco Rubio was appointed acting administrator of USAID, and startling changes ensued. On February 7, the agency’s website displayed a notice signaling that nearly all employees would be placed on administrative leave by February 7, 2025. This abrupt action was temporarily blocked by a federal judge, preventing the immediate placement of more than 2,000 workers on leave.

Legally, President Trump’s administration faces significant barriers in its efforts to shut down USAID. The Congressional Research Service has clarified that the agency is an independent entity within the executive branch, and any structural changes or efforts to abolish it would require Congressional approval. More than 100 House Democrats mirrored this interpretation in a letter to Secretary Rubio, stressing the agency’s independence and the legal constraints on unilateral actions by the executive branch.

Claiming “Waste and Abuse” at USAID: An Examination of the Evidence

Critics of USAID, including President Trump and Musk, have argued that the agency has enabled wasteful spending through projects they call excessive or frivolous. Various programs were highlighted as examples of alleged misuse of taxpayer funds. Karoline Leavitt, White House Press Secretary, cited four specific initiatives during a February 3 statement, all of which were later amplified on social media channels. Let’s examine these claims in detail:

1. A $1.5 Million DEI Project in Serbia

This program, aimed at improving diversity, equity, and inclusion (DEI) in Serbia’s workplaces, represents the only initiative among the four cited by the Trump administration that was actually funded by USAID. The program was allocated $1.5 million over three years, with backing from the USAID mission in Serbia.

The program tackled the inclusion of LGBTQ individuals in the workforce, an area where Serbia continues to lag behind other European nations in terms of LGBTQ rights. In September 2023, Brooke Isham, the USAID mission director in Serbia, emphasized that “inclusive development is important for driving economic growth and creating a healthier democracy.”

2. A “Musical Event” in Ireland

Contrary to claims by government representatives, this project had no financial ties to USAID. The U.S. State Department funded $70,844 for the initiative, which was part of a program organized by the Irish South Wind Blows production company. The event, called “Other Voices: Dignity – Towards a More Equitable Future,” aimed at wide-scale promotion of diversity and inclusion through music and was entirely in line with diplomatic cultural engagement efforts.

3. A Transgender Opera in Colombia

The opera, titled “As One,” featured a transgender protagonist and was performed at the University of the Andes in Bogotá, Colombia, in 2022. The performance involved multiple financial contributions, including $25,000 from the State Department’s Small Grants Program, along with $22,020 in non-federal funding. Again, no USAID funds were allocated to this initiative.

4. A Comic Book Series Highlighting LGBTQ Inclusion in Peru

“The Power of Education,” a comic book series created to promote U.S. education and exchange programs, was another project wrongly described by the administration. Funding for the series also came from the State Department. The second volume in particular, which focused on a gay character’s journey, served to address anti-LGBTQ prejudice in Peru. While the administration labeled this comic “transgender-focused,” the storyline itself centered on LGBTQ advocacy in a broader sense and had nothing to do with the transgender community specifically.

What the Data Shows

Importantly, three out of the four projects cited as examples of so-called “waste” were not funded by USAID at all. Instead, they fell under cultural programming administered by the U.S. State Department. The only USAID-backed project was the Serbian workplace inclusion initiative, which accounted for a mere $1.5 million of USAID’s $40 billion annual spending—less than 0.004% of its budget in 2023. It is left to individual taxpayers’ discretion whether to view these initiatives as legitimate development efforts or misallocations, but the factual discrepancies in the administration’s claims have raised eyebrows.

Additionally, the spotlight on these small projects glosses over the continued significance of USAID in larger global challenges such as advancing public health, disaster relief, and economic reforms critical to U.S. interests. Supporters argue that projects like the Serbian DEI program align with USAID’s longstanding goal of empowering underrepresented communities, a strategy that strengthens democratic principles and human rights foundations globally.

Broader Implications for USAID’s Future

The uncertainty surrounding USAID’s future operations represents a potentially seismic shift in U.S. foreign policy. Ending or significantly reducing USAID operations could jeopardize ongoing social and economic programs in over 100 countries. This is particularly concerning in regions that depend on U.S. aid to combat poverty, disease, and armed conflict. Furthermore, dismantling the agency could harm America’s standing as a global leader in development and humanitarian efforts.

At home, these changes have triggered widespread concern among USAID employees. With over 2,000 workers initially slated to be placed on administrative leave, many fear for their livelihoods, as well as the impact on ongoing U.S.-funded projects. The legal battles to maintain agency operations fully underline the complexity of dismantling a structure deeply rooted in the federal government since the Kennedy administration.

Legislative approval remains a key roadblock to Trump’s plan. In the meantime, organizations representing USAID workers and advocates of foreign assistance have expressed confidence that Congress will act decisively to protect the agency.

Final Thoughts

While Elon Musk’s leadership at DOGE and Trump’s aggressive approach to rooting out what they call inefficiencies in government spending have drawn applause from some conservative circles, the backlash against these policies makes it clear the debate over USAID’s role is far from over. As reported by VisaVerge.com, USAID remains an integral component of America’s global strategy, and its future will have wide-ranging implications for international partnerships, worker protections, and the country’s foreign policy goals.

For more information on the responsibilities and functions of USAID, visit the official USAID page at usaid.gov.

Learn Today

USAID (U.S. Agency for International Development) → An independent agency of the U.S. government established in 1961 to provide foreign aid and development assistance.
Congressional Research Service → A non-partisan U.S. legislative agency providing research and analysis to Congress for informed policymaking decisions.
Administrative Leave → A temporary leave from work, often paid, during investigations or organizational restructuring, without termination of employment.
Diversity, Equity, and Inclusion (DEI) → Efforts and policies aimed at promoting fair treatment, representation, and opportunities for all individuals, especially marginalized groups.
Small Grants Program → A funding initiative usually supporting limited-scale projects, often promoting cultural, educational, or social objectives internationally.

This Article in a Nutshell

Trump vs. USAID: The Debate Over Its Future

USAID, a pillar of U.S. foreign aid since 1961, faces potential dismantling under Trump and Musk’s scrutiny. Critics claim “waste,” yet analysis reveals inaccuracies in accusations. Supporters highlight USAID’s global impact, from poverty reduction to health initiatives. As legal battles ensue, America’s leadership in development hangs in the balance.
— By VisaVerge.com