USAID Shutdown Over Corruption and Fraud

USAID Shutdown, Project Short List of Wasted or Laundered Tax Money

USAID Shut Down Amid Corruption Scandal and Money Laundering Allegations

In a shocking turn of events, the United States Agency for International Development (USAID) has been officially shut down following damning revelations of corruption and apparent money laundering. An extensive federal investigation uncovered systemic misuse of funds, with billions of taxpayer dollars flowing into fraudulent projects, shell organizations, and offshore accounts under the guise of foreign aid.

A Legacy of Waste and Mismanagement

For decades, USAID has been at the center of controversy, with numerous reports highlighting questionable spending, lack of oversight, and projects that yielded little to no tangible benefits. Investigators determined that many of these initiatives served as fronts for financial misconduct, leading to the agency’s unprecedented closure.

Below are some of the most egregious examples of USAID’s waste and abuse:

1. $1.5 million to promote “diversity, equity, and inclusion” in Serbia’s workplaces and business communities.
2. $70,000 for the production of a “DEI musical” in Ireland.
3. $2.5 million for electric vehicles for Vietnam.
4. $47,000 for a “transgender opera” in Colombia.
5. $32,000 for a “transgender comic book” in Peru.
6. $2 million for sex change procedures and LGBT activism in Guatemala.
7. $6 million to fund tourism in Egypt.
8. Hundreds of thousands of dollars directed to a nonprofit linked to designated terrorist organizations, even after an inspector general launched an investigation.
9. Millions to EcoHealth Alliance, which was involved in research at the Wuhan lab.
10. Hundreds of thousands of meals that reportedly ended up in the hands of al Qaeda-affiliated fighters in Syria.
11. Funding for the production of personalized contraceptive devices in developing countries.
12. Hundreds of millions of dollars funneled into irrigation canals, farming equipment, and even fertilizer that facilitated unprecedented poppy cultivation and heroin production in Afghanistan, ultimately benefiting the Taliban.

Below are the top 10 largest USAID projects that squandered vast sums of money with little to show for it:

1. Afghanistan Reconstruction Efforts ($145 Billion+)
   • Decades of spending on infrastructure, governance, and security in Afghanistan resulted in unfinished projects, abandoned facilities, and rampant corruption, ultimately collapsing when the Taliban regained control in 2021.
2. Haiti Earthquake Relief ($13 Billion)
   • Following the devastating 2010 earthquake, billions were allocated for reconstruction and humanitarian aid. However, much of the funding disappeared into bureaucratic black holes, leaving the country with minimal improvements.
3. Pakistan Energy Sector Assistance ($7.5 Billion)
   • USAID funneled billions into improving Pakistan’s power grid, yet the country continues to suffer from chronic blackouts and power shortages.
4. Ebola Preparedness in Africa ($2.4 Billion)
   • Despite massive investments to combat Ebola outbreaks, investigations revealed that much of the funding was misallocated, with many hospitals and response centers left unbuilt or dysfunctional.
5. Tanzania Agricultural Development ($600 Million)
   • Intended to boost food security, this initiative mostly benefited politically connected agribusinesses rather than local farmers.
6. West Bank and Gaza Economic Aid ($500 Million+)
   • Significant portions of this funding reportedly ended up in the hands of corrupt officials and militant groups instead of aiding civilians.
7. Colombia Anti-Coca Crop Program ($450 Million)
   • Efforts to curb drug production through crop substitution programs were largely ineffective, with coca cultivation reaching record highs despite heavy financial backing.
8. Egypt Economic Support ($300 Million)
   • U.S. aid meant for economic development often ended up funding military-linked businesses instead of helping ordinary Egyptians.
9. Libya Post-Gaddafi Reconstruction ($200 Million)
   • After the fall of Muammar Gaddafi, USAID poured hundreds of millions into Libya, but instability and civil war rendered most projects ineffective or abandoned.
10. Nigeria’s Power Africa Initiative ($100 Million)

• USAID promised to electrify vast regions of Nigeria, yet corruption and poor execution left many areas without power despite large investments.

Political Fallout and Next Steps

The fallout from USAID’s shutdown has sent shockwaves through Washington, with lawmakers from both parties calling for greater scrutiny of foreign aid programs. Critics argue that the agency’s collapse is long overdue, given its history of inefficiency and scandals.

Meanwhile, federal prosecutors are expected to pursue criminal charges against officials and contractors linked to the corruption schemes. Additionally, the White House is considering a restructuring of U.S. foreign aid efforts to ensure stricter oversight and accountability moving forward.

As investigations continue, the end of USAID marks a historic shift in America’s approach to international assistance, raising questions about the future of foreign aid and whether taxpayer dollars will be better protected in future programs.

https://www.whitehouse.gov/fact-sheets/2025/02/at-usaid-waste-and-abuse-runs-deep