Senator Joni Ernst (R-IA), chair of the Senate Department of Government Efficiency (DOGE) Caucus, has accused the U.S. Agency for International Development (USAID) of a "pattern of obstructionism" in a letter to Secretary of State Marco Rubio. Ernst alleges that USAID has stonewalled her office for years, hindering attempts to oversee the agency's spending and ensure taxpayer dollars are used responsibly.
Ernst criticized USAID for what she describes as wasteful spending on projects like tourism initiatives in Lebanon, a Sesame Street program in Iraq, and sending Ukrainians to Paris Fashion Week. She specifically highlighted an instance where USAID allegedly misled her staff about the classification status of documents detailing funds provided to Ukrainian businesses, some of which were reportedly used for travel to fashion shows and film festivals.
After months of delays, USAID finally allowed Ernst's staff to review the documents related to Ukrainian business assistance, but only within a SCIF (sensitive compartmented information facility), implying classified information. However, Ernst asserts that the data was actually unclassified, accusing USAID of creating unnecessary obstacles. The review revealed that over 5,000 Ukrainian businesses received U.S. taxpayer-funded assistance, with awards of up to $2 million each.
Ernst further criticized USAID's use of Negotiated Indirect Cost Agreements (NICRAs), which she claims allowed contractors to spend over 25% of awarded funds on expenses such as rent for corporate headquarters and advocacy. She cited an instance where USAID initially denied having a system to track NICRA data, only to later confirm the existence of a publicly reported NICRA database. Even after a formal request from a committee of jurisdiction, USAID allegedly restricted access to the documents.
Ernst also raised concerns about Chemonics, a government contractor that the USAID inspector general found to have over-billed the U.S. government by $270 million. She highlighted a $9.5 billion USAID project led by Chemonics that resulted in numerous arrests and indictments related to the illicit resale of USAID-funded commodities. Ernst called for a thorough investigation into USAID's spending practices and recipients of assistance.
In a recent development, USAID announced that all direct hire staff, except for essential personnel, would be placed on leave globally. The Trump administration is considering merging USAID with the State Department, with Rubio appointed as acting director. While Rubio criticized USAID's unresponsiveness, Democratic lawmakers protested the move, emphasizing the agency's role in U.S. soft power and national security.
