The Trump administration's abrupt takeover of the U.S. Agency for International Development (USAID) has triggered a humanitarian funding crisis, with aid groups warning of catastrophic operational paralysis. Leaked audio from a February 13 State Department meeting reveals Pete Marocco – architect of the restructuring – defending payment freezes while accusing career staff of enabling hundreds of illegal transactions.
During the tense session, World Vision’s Edward Brown detailed how his organization bankrolled U.S.-backed programs with private funds amid the suspension.
‘We still had nefarious actors in agencies trying to push illegal payments,’Marocco stated, justifying withheld reimbursements for pre-freeze work. Over 1,200 grants have since been terminated across State and USAID.
The administration’s ‘total zero-based review’ extends beyond USAID to include:
- NASA climate initiatives
- Millennium Challenge Corporation projects
- U.S. Agency for Global Media operations
Marocco framed the overhaul as breaking a cycle of dependency in foreign aid, demanding programs align with Trump’s America First priorities. ‘You need to convince someone working at a Mississippi McDonald’s,’ he told stunned attendees.
Legal challenges escalated last week as Judge Amir Ali condemned the administration’s ‘brazen defiance’ of his order to resume payments. Despite court interventions, USAID staff confirm most exempted programs remain unfunded – 78% face shutdown within 30 days per internal estimates.
With 7,000+ contracts suspended globally and critical health initiatives like HIV prevention halted, Congressional Democrats accuse Marocco of ‘systematic dismantling’ rather than reform. ‘This isn’t restructuring – it’s suffocation,’ said Rep. Alexandria Ocasio-Cortez during Wednesday’s House oversight hearing.
