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The United States Agency for International Development (USAID) is under heightened scrutiny following allegations from former President Donald Trump and billionaire Elon Musk. The Tesla and SpaceX CEO, a vocal critic of government spending, has repeatedly accused USAID of wasteful expenditures and corruption.

On Thursday, Trump escalated the claims, stating that "billions of dollars have been stolen," with a significant portion allegedly funneled to major media outlets as a "payoff." He was reacting to reports that organizations like Politico and The New York Times received payments from USAID.

"Looks like billions of dollars have been stolen at USAID, and other agencies, much of it going to the fake news media as a ‘payoff’ for creating good stories about the Democrats. The left-wing ‘rag,’ known as ‘Politico,’ seems to have received $8,000,000. Did The New York Times receive money??? Who else did??? This could be the biggest scandal of them all, perhaps the biggest in history! The Democrats can’t hide from this one. Too big, too dirty!" Trump posted on Truth Social.

How Is USAID Funded?

USAID operates through funding allocated in the annual federal budget. Congress determines the agency’s financial resources, distributing funds to various programs based on national and international priorities.

In fiscal year 2023, USAID disbursed approximately $44 billion, making up about 0.6% of the U.S. government’s total budget of $6.75 trillion. The agency’s programs span across 160 countries worldwide.

Key Areas of USAID Spending

  • Health Programs – Funds go toward vaccination campaigns, HIV/AIDS prevention, maternal and child healthcare, and other global health initiatives.
  • Humanitarian Assistance – USAID provides emergency relief for natural disasters, conflicts, and food crises, offering food, shelter, and medical aid.
  • Economic Development – The agency invests in infrastructure projects, economic growth initiatives, and poverty reduction programs.

Controversies and Criticism

Despite its humanitarian efforts, USAID has faced growing scrutiny over certain spending decisions:

  • Allegations of Wasteful Spending – Senator Joni Ernst accused USAID of funding questionable projects, citing examples like financing Moroccan pottery classes and research at the Wuhan lab. She also raised concerns about aid funds allegedly reaching terrorist groups.
  • LGBTQI+ Initiatives – The agency has allocated funds to LGBTQI+ programs globally, including efforts to promote transgender recognition in countries such as Bangladesh, Kosovo, and Guatemala. Critics argue that these programs do not align with USAID’s core mission.
  • Media Payments – Trump claims that billions have been siphoned from USAID to fund media outlets, allegedly to secure favorable coverage for the Democratic Party.

While USAID has yet to directly respond to the latest allegations, the agency continues to be a focal point in debates over government transparency and international aid priorities.

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