AISenate hearing scrutinizes USAID spending and foreign aid waste

Benefits Fraud and Improper PaymentsSenate Homeland Security and Governmental Affairs · February 13, 2025 · 119th Congress
The Senate Homeland Security and Governmental Affairs Committee first held a brief business meeting to adopt a resolution authorizing committee funding for the 119th Congress, then convened a hearing to examine alleged waste and mismanagement at USAID and the broader foreign aid bureaucracy. Begins at ▶ 0:18:15
Transcript
Highlights

Title

Senate hearing scrutinizes USAID spending and foreign aid waste

Purpose

The Senate Homeland Security and Governmental Affairs Committee first held a brief business meeting to adopt a resolution authorizing committee funding for the 119th Congress, then convened a hearing to examine alleged waste and mismanagement at USAID and the broader foreign aid bureaucracy. Chair Rand Paul and Republican members cited specific USAID grants they characterized as wasteful or ideologically driven, while Democrats argued the hearing served to justify the Trump administration's unilateral dismantling of the agency without proper congressional or legal process. Witnesses Michael Shellenberger and Dr. William Ruger testified on USAID's spending practices, alleged censorship activities, and calls for greater transparency. Begins at▶ 0:18:15

Who spoke

• Chair Rand Paul (R-KY)▶ 0:16:26: Opened the business meeting to adopt the committee funding resolution by voice vote▶ 0:16:26, then opened the hearing by citing examples of USAID spending he called wasteful, including $4.8 million for Ukrainian social media influencers▶ 0:19:20 and $2 million for gender-affirming care in Guatemala▶ 0:19:47; later defended the hearing against Democratic criticism▶ 1:08:30 and discussed the legal history of impoundment and inspector general firings▶ 1:32:15.

• Sen. Gary Peters (D-MI), Ranking Member▶ 0:24:10: Called the hearing a "pep rally" for Trump's "illegal power grab"▶ 0:24:10 and argued only Congress has the constitutional power to decide spending▶ 0:26:26; warned that Elon Musk and DOGE could next target Social Security, Medicare, and disaster aid▶ 0:27:25, and cited Nixon's Impoundment Control Act of 1974 as bipartisan precedent▶ 0:30:30; later argued CFPB and FAA cuts endanger consumers and air travel safety▶ 0:50:52.

• Mr. Michael Shellenberger, journalist and author▶ 0:33:20: Testified USAID has spent heavily on "information control," censorship demands, and financing supposedly independent journalism▶ 0:33:50; said USAID funneled $54 million to EcoHealth Alliance, tied to the Wuhan Institute of Virology▶ 0:35:06, and detailed alleged USAID funding of the Organized Crime and Corruption Reporting Project used in Trump-related investigations▶ 1:22:30.

• Dr. William Ruger, American Institute for Economic Research▶ 0:39:11: Argued national security arguments against cutting foreign aid are unpersuasive because U.S. safety rests on military and economic strength, not "soft power"▶ 0:40:10; said foreign aid has sometimes fueled anti-Americanism, citing 2011 Egypt protests▶ 0:42:05, and that Secretary Rubio has said the U.S. is not abandoning foreign aid but distinguishing aid that serves the national interest▶ 0:43:53.

• Sen. Ron Johnson (R-WI)▶ 0:45:20: Cited federal spending rising from $4.4 trillion to a $7.3 trillion annual pace, a 61% increase▶ 0:45:20; pressed witnesses on accusations of "conspiracy theories," raising the Russia collusion and Hunter Biden laptop episodes▶ 0:46:17.

• Sen. James Lankford (R-OK)▶ 0:57:08: Referenced his "Federal Fumbles" report, citing examples like 12 drag shows in Ecuador▶ 0:57:40 and a fish farm built in the Algerian desert▶ 0:57:40; criticized Voice of America programming as focused on negative stories about America▶ 0:59:34, and noted $11 million in aid identified as going directly to the Taliban▶ 1:02:08.

• Sen. Richard Blumenthal (D-CT)▶ 1:03:03: Said the hearing was "designed to give cover" for an unlawful dismantling of USAID▶ 1:03:21; cited an inspector general report that the funding pause delayed $489 million in food assistance, risking spoilage▶ 1:03:53, and read statements from Iowa and Ohio farm groups warning of harm from lost USAID grain purchases▶ 1:06:37; requested fired USAID Inspector General Paul Martin testify▶ 1:12:38.

• Sen. Maggie Hassan (D-NH)▶ 1:15:34: Argued that if the administration wanted to cut waste it would support inspectors general, citing the HHS IG's identification of $7 billion in waste/fraud last year▶ 1:16:34; said Trump fired at least 17 inspectors general and noted a reported $400 million State Department order for armored vehicles from Tesla▶ 1:17:04.

• Sen. Rick Scott (R-FL)▶ 1:19:06: Cited $36 trillion in national debt and 53% growth in federal spending over four years▶ 1:19:38; said USAID gave $110 million to a Palestinian cement factory allegedly used by Hamas to build tunnels▶ 1:20:39, and questioned Shellenberger about USAID funding of left-leaning media outlets▶ 1:22:08.

• Sen. Andy Kim (D-NJ)▶ 1:27:17: Said the USAID drawdown to roughly 600 staff is not a "pause" but a dismantling▶ 1:27:40; described his own USAID career▶ 1:28:04 and quoted Ronald Reagan's and Secretary Rubio's past defenses of foreign aid as advancing U.S. national interests▶ 1:29:27.

• Sen. Joni Ernst (R-IA)▶ 1:52:39: Cited a $20 million Sesame Workshop grant for an Iraqi version of Sesame Street▶ 1:53:13 and said over $9 million meant for Syrian civilian supplies ended up with terrorists▶ 1:53:13; described USAID funding hidden from USASpending.gov reaching the Wuhan Institute of Virology through sub-awards▶ 1:55:19, and closed and adjourned the hearing▶ 2:04:35.

Key moments

• Chair Paul listed a series of USAID grants he called wasteful, including $2 million for transgender surgeries in Guatemala, $3 million for "girl-centered climate action" in Brazil, and $87.9 million to help Afghan opium poppy farmers▶ 0:19:47▶ 0:21:21.

• Peters accused the administration of using an "unvetted billionaire," Elon Musk, with massive conflicts of interest to unilaterally cut off congressionally approved funding, calling it unconstitutional▶ 0:25:56.

• Shellenberger testified USAID funded a "disinformation primer" in 2021 urging greater social media censorship and said USAID had funneled $54 million to EcoHealth Alliance, more than the $42 million the group received from the Pentagon▶ 0:34:13▶ 0:35:06.

• Blumenthal cited the USAID inspector general's report that the funding pause delayed $489 million in food assistance, risking spoilage, and that over 90% of the agency's workforce was furloughed or on leave, undermining oversight mechanisms▶ 1:04:25▶ 1:04:50.

• Blumenthal requested that fired USAID Inspector General Paul Martin testify before the committee; Paul responded that Democrats had been offered the chance to bring a witness and declined▶ 1:12:38▶ 1:12:48.

• Chair Paul and Blumenthal sparred directly over whether the hearing was "unserious," with Paul calling Blumenthal's "conspiracy theorist" characterization a personal attack and "name-calling"▶ 1:12:48▶ 1:13:14.

• Ernst said her oversight push led to a group being barred from receiving U.S. government grants after it was found USAID funding to the Wuhan Institute of Virology had been hidden through layers of sub-awards, not appearing on USASpending.gov▶ 1:55:19▶ 1:55:41.

• Sen. Kim quoted Ronald Reagan calling arguments against foreign aid "excuses" that are "dead wrong," and cited then-Sen. Marco Rubio's statement that foreign aid is not charity but furthers U.S. national interests▶ 1:29:45▶ 1:30:13.

• Sen. Scott cited a claim that USAID gave $110 million to a Palestinian cement factory allegedly used by Hamas to build tunnels in Gaza▶ 1:20:39.

• Sen. Johnson cited Wall Street Journal reporting that federal spending in the first four months of the year was on pace for $7.3 trillion, a 61% increase from $4.4 trillion before the pandemic, against 2.6% population growth▶ 0:45:20.

Metadata

Official titleBusiness meeting to consider an original resolution authorizing expenditures by the committee during the 119th Congress; to be immediately followed by a hearing to examine eliminating waste by the foreign aid bureaucracy.
CommitteeSenate Homeland Security and Governmental Affairs
Chamber / CongressSenate · 119th Congress
DateFebruary 13, 2025
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript269 caption blocks · 14,734 words · 2:05:16 runtime
EventCongress.gov 336606