Senator Joni Ernst is now raising alarms about USAID, accusing the agency of trying to intimidate and threaten her team in a bold attempt to block congressional oversight.
In an exclusive interview with DailyMail.com, the Iowa Republican expressed her frustrations with the agency, which has been effectively shut down by Elon Musk’s Department of Government Efficiency (DOGE).
Ernst didn’t hold back, taking aim at the way USAID has been handling its operations and its relationship with oversight bodies.
The Origins and Current Crisis at USAID
Originally set up in 1961, USAID was created with a clear mission: to distribute U.S. taxpayer dollars to support critical projects like education, healthcare, and infrastructure development in foreign countries.
Over the years, it has played a significant role in delivering essential resources such as medicine and food to struggling nations.
However, things began to unravel when Musk’s DOGE team started scrutinizing the department’s spending.
What they uncovered shocked them, leading to the decision to shut the agency down temporarily.
The spending in question included millions of taxpayer dollars allocated for projects like expanding LGBT employment initiatives in Serbia and funding transgender health clinics in countries like India and Vietnam.
Now, USAID’s future hangs in the balance, with Secretary of State Marco Rubio stepping in after discovering “insubordination” among top agency officials.
A Clash Over Transparency and Accountability
According to Senator Ernst, USAID has been resistant to transparency and accountability for years.
She recalled how, when attempting to investigate the agency’s financial practices last year, she encountered significant pushback.
“They said, ‘No, you can’t look at it. You’re not going to look at these contracts,’” she explained.
USAID even threatened legal action against her, calling the entire situation “crazy.”
Ernst’s concerns centered around how much of the agency’s funding was actually going toward aid and how much was being consumed by administrative costs.
She found that USAID’s so-called “negotiated indirect cost rate agreements” (NICRA) were inflated, including things like employee salaries, rent, and even lobbying expenses.
The Fight for Data and Uncovering Waste
After months of back-and-forth negotiations, Ernst’s team was finally allowed limited access to some documents.
However, there was a catch: they were under constant surveillance.
As one of Ernst’s staff members entered a room to review the data, they weren’t allowed to take notes or remove any documents, and cameras monitored their every move.
What they found was alarming: NICRA rates were as high as 50 to 60 percent, and that’s before factoring in additional costs added by subcontractors.
This meant that, at best, only 40 percent of taxpayer money allocated for humanitarian aid was actually being used for aid purposes.
Ernst’s team also discovered how NICRA funds were being used to cover lavish expenses like meals with lobbyists and the upkeep of luxurious headquarters for USAID contractors around the world.
Unusual Allocations and Controversial Projects
The findings didn’t stop there. USAID money was found to have been sent to various questionable causes.
Some of the funds went to the Wuhan Institute of Virology in China, where the COVID-19 pandemic is believed to have originated.
Other funds went toward tourism promotion in Lebanon and even pottery classes in Morocco.
In addition, USAID has funded various projects such as a $2.5 million electric vehicle initiative in Vietnam and over $35 million dedicated to HIV research targeting South African sex workers, their clients, and the transgender community.
Ernst is calling for an overhaul of the agency, advocating for a restructuring that prioritizes funding for effective programs while eliminating waste and abuse.
A Push for Change Amidst Tensions
After taking office, President Donald Trump and Secretary of State Marco Rubio froze most foreign aid for 90 days to review how USAID’s $30 billion budget for 2025 was being allocated.
This freeze was part of a broader effort to ensure funds were being spent wisely.
During this review period, the DOGE team took drastic steps, locking USAID workers out of their offices to investigate what was truly happening within the department.
CNN reported that two senior security officials at USAID were placed on forced leave after they obstructed access to classified documents.
This was just the beginning—almost 30 staff members from the Legislative and Public Affairs bureau lost access to their emails, and by the end of the week, the total number of senior USAID staff put on leave approached 100.
The battle over transparency and accountability at USAID continues, and it remains to be seen what the future holds for the agency and its role in U.S. foreign aid.
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