The State Department has disclosed that 90% of funds allocated through the U.S. Agency for International Development (USAID) failed to reach their intended recipients. The revelation came during a July 2 briefing, where spokesperson Tammy Bruce stated that “the amount of fraud is mind-boggling.” The figure refers to foreign aid disbursed over multiple years, much of which was earmarked for humanitarian, health, and development programs. The announcement follows the formal shutdown of USAID operations on July 1, with all remaining programs now under the control of the State Department. Secretary of State Marco Rubio confirmed the transition, saying future aid will be “delivered with more accountability, strategy, and efficiency.”
The restructuring is part of a broader overhaul led by the Department of Government Efficiency (DOGE), which has targeted federal agencies for downsizing. USAID, which previously managed billions in foreign assistance, has seen over 90% of its contracts terminated. A recissions package passed by the House in June rescinded $8.3 billion in USAID funding. The Office of the Inspector General reported that 10,000 workers were affected, including foreign service officers and contractors. Aid organizations have described the transition as abrupt and disorganized, with many programs suspended mid-cycle.
Sources
https://abcnews.go.com/Health/usaid-programs-now-run-state-department-agency-ends/story?id=123373289
https://www.cbsnews.com/news/state-dept-massive-usaid-cuts/
https://www.upi.com/Top_News/US/2025/06/17/state-department-usaid-cuts-recissions/
