Donald Trump’s team has hinted at the possibility of filing lawsuits against employees of the U.S. Agency for International Development (USAID) and its grant recipients. Allegations of misusing foreign aid funds could serve as grounds for such actions, which would be an unprecedented move.
According to The Hill, Peter Marocco, the acting deputy administrator of USAID, stated during a closed-door briefing with members of the House Foreign Affairs Committee that he is considering referring the matter to the Department of Justice.
One source noted that it remains unclear how serious these intentions are, but the discussion itself signals potential action. An internal report from the USAID Office of the Inspector General, prepared in January, highlighted resistance from some grant recipients in providing information deemed crucial for oversight of fund allocation. The document pointed out that $8 billion had been distributed primarily through UN agencies and international financial institutions.
However, a February report emphasized new challenges: mass layoffs, forced furloughs of USAID employees and contractors, and funding freezes have now put oversight efforts at risk.
Marocco’s briefing took place shortly after the Supreme Court ruled against the Trump administration’s effort to keep billions of dollars in foreign aid frozen, sending the case back to lower courts.
Trump’s team is pushing to eliminate approximately 90% of USAID’s approved foreign aid grants. On February 7, Trump himself stated that “corruption at USAID has reached an unprecedented level” and called for the agency’s dissolution.
