Biden Administration Stonewalls Probe Into Hundreds of Millions in Potentially Wasted Foreign Aid

Is USAID Wasting Taxpayer Dollars on Luxury Expenses?

The Biden administration is under fire for allegedly wasting hundreds of millions of taxpayer dollars on luxury hotels, lobbying services, and first-class airfare. USAID, the foreign aid agency, has refused to disclose how much of the $15 billion it distributed to foreign entities in 2022 was spent on non-humanitarian projects. This lack of transparency has raised concerns that grant recipients are misusing taxpayer funds on frivolous expenses, according to a letter from Sen. Joni Ernst (R., Iowa) and Rep. Michael McCaul (R., Texas) obtained by the Washington Free Beacon.

Ernst and McCaul are investigating Negotiated Indirect Cost Rate Agreements (NICRA), which allow U.S. government grantees to spend a significant portion of taxpayer dollars on items like lobbyists, hotels, and luxury airfare. While NICRAs are supposed to limit extraneous spending, the lawmakers claim that costs have skyrocketed under the Biden administration due to a lack of oversight. USAID is supposed to renegotiate these rates annually, but the agency has failed to keep up with ballooning expenditures, with just seven federal employees responsible for reviewing nearly 6,000 transactions to over 300 organizations.

Ernst and McCaul are concerned that USAID is wasting taxpayer dollars on expenses like rent for corporate headquarters in Geneva, Rome, or Paris. The agency has a history of misallocating funds, with an inspector general report in 2019 finding that just 43% of the agency’s awards achieved half of their intended results. USAID has also been criticized for supporting organizations that work with terror groups and maintaining links to militant organizations like Hamas.

The lawmakers are demanding that USAID stop obstructing their investigation and disclose how much taxpayer money is being spent on non-humanitarian projects. They plan to grill USAID administrator Samantha Power over the issue, setting the stage for a showdown between the Republican-controlled House committee and the agency.