Former USAID Official Exposes Alleged Waste and Fraud Within Agency
DOGE Targets USAID as Potential Candidate for Budget Cuts

A former U.S. Agency for International Development (USAID) official is speaking out about the waste and fraud she encountered during her time at the agency, claiming it made it difficult for staff to do their jobs effectively.
Catharine O’Neill Gillihan, who worked at the State Department before joining USAID under President Trump, discussed her concerns on “Varney & Co.” on Wednesday. She explained that while USAID technically answers to the Secretary of State, there was a lack of accountability and traceability within the agency, making it hard to ensure efficiency.
“Trying to keep USAID aligned with the Secretary of State was a real challenge. There was no accountability, no traceability, and that made it difficult for us to do our jobs,” Gillihan said.
O’Neill Gillihan’s comments come as USAID finds itself under scrutiny from both Trump and Elon Musk, head of the Department of Government Efficiency (DOGE). Musk, known as the world’s richest man, is pushing to close down the agency, recently making headlines after his team seized classified information from USAID despite lacking proper security clearance.
USAID Under Fire Amid Political Debate
Over the weekend, USAID’s website went dark, and by Monday, employees were locked out of its headquarters, with many of their tasks immediately halted. USAID’s future is becoming a heated topic in U.S. politics, with critics, especially Republicans, calling it wasteful and accusing the agency of promoting liberal agendas. Some argue that it should be folded into the State Department.
“There’s so much wasteful spending at USAID,” Gillihan said. “I heard recently that they were funding a ‘Sesame Street’ program in Peru. The agency’s programs have really gotten out of control.”
USAID was created in 1961 by President Kennedy, and Gillihan argues that President Trump and Secretary of State Marco Rubio are within their rights to bring it back under the State Department, as it was initially intended.
USAID’s Budget and Oversight
The U.S. spends far more on foreign aid than other countries, with $68 billion allocated for 2023, including $40 billion for USAID alone, according to the BBC.
“If a CEO oversees a department that’s wasting money and not aligning with the company’s mission, it’s natural to review and possibly cut that department,” Gillihan noted. “Trump, as the CEO of the United States, has empowered Elon Musk to review government spending and ensure it aligns with national interests.”
Gillihan pointed out that under Article II of the U.S. Constitution, the president has the right to oversee and ensure that government spending aligns with the country’s priorities, a power Musk is now helping to review.
USAID is now facing increasing scrutiny as politicians and government officials debate its role, funding, and efficiency. The agency’s future remains uncertain as its spending practices are closely examined and critiqued in the current political climate.