Rubio Axes $Billions in 'Wasteful' Foreign Aid, Musk Applauds Bold Move
Paul Riverbank, 3/11/2025Trump administration slashes billions in foreign aid, with Musk's support and Rubio's leadership.
The Trump administration's dramatic dismantling of USAID marks a seismic shift in American foreign assistance – one that's left Washington insiders scrambling to assess its implications.
I've spent the last day speaking with sources throughout the State Department, and the scope of Secretary Rubio's announcement is even more sweeping than initially reported. The cancellation of 5,200 contracts doesn't just represent a bureaucratic reshuffling – it's a fundamental reimagining of how America projects soft power abroad.
Let's be clear about what's happening here: After a six-week review, the Department of Government Efficiency (DOGE) effectively gutted USAID's independent operations. The numbers tell a stark story – 83% of programs axed, billions in questioned spending, and the remnants folded into State Department control.
Some of the revealed expenditures are frankly jaw-dropping. $45 million for DEI scholarships in Burma? $520 million for ESG projects in Africa? These are the kind of line items that make fiscal hawks see red. But the real bombshell is the $1.2 billion to "undisclosed recipients" – that's the kind of finding that keeps oversight committees up at night.
The timing here matters. With Congress wrestling over a continuing resolution, this move throws a wrench into budget negotiations. Sen. Rand Paul and Rep. Massie have already signaled they won't support maintaining USAID funding at current levels. Their stance isn't surprising – both have long criticized what they view as bloated foreign aid budgets.
Having covered foreign assistance programs for over two decades, I've seen various reform attempts come and go. But this one feels different. The involvement of Elon Musk as an adviser adds a wild card element that Washington's traditional power brokers are still trying to decode.
Critics will undoubtedly point to the risks of such a dramatic restructuring. Foreign aid has long served as a crucial tool of American soft power. Yet supporters of the move can point to embarrassing examples of waste – like the $20 million Iraqi Sesame Street or those infamous $2 million Moroccan pottery classes.
What's clear is that this represents more than just budget-cutting. It's a fundamental shift in how America approaches foreign assistance, aligning aid more directly with diplomatic objectives. Whether this proves to be a masterstroke or a massive miscalculation may take years to determine.
One thing's certain – the foreign aid landscape won't look the same after this. And for a Washington establishment already grappling with Trump's unorthodox approach to governance, it's yet another reminder that the old rulebook is being rewritten page by page.
