USAID Liberal Corruption and Circular Funding: How Taxpayer Dollars Were Used Against U.S. Policies and Interests

President Trump was criticized for cutting USAID funding shortly after taking office in his second term. He argued that USAID was plagued by waste, fraud, and corruption, with taxpayer money funding projects such as DEI workplace training in Serbia and transgender theater productions in Ireland.

The White House released a documented list of expenditures that included hundreds of thousands of dollars to a nonprofit linked to designated terrorist organizations after an OIG investigation had been launched, millions to EcoHealth Alliance, which was involved in research related to the Wuhan lab, and funding that resulted in hundreds of thousands of meals being distributed to al Qaeda-affiliated fighters in Syria.

Beyond waste and fraud, USAID funds also flowed to organizations that were at odds with U.S. interests, including groups that funded protests against U.S. policies within the United States and undermined US policy abroad.

George Soros, one of the largest donors to the Democratic Party and left-wing causes in the United States, became a central figure in the USAID corruption debate. Open Society Foundations has stated that claims it receives USAID funds or directs USAID spending are “manifestly false.” However, the organization’s own records and federal grant data indicate a financial relationship with USAID.

The Soros Foundations’ 2001 annual report listed USAID as a “donor partner,” while congressional testimony by Tyler O’Neil, citing USASpending.gov records, documented USAID grants to the Alliance for Open Society International, a legal arm of the Open Society Foundations. The grants were identified by federal grant numbers AID122A000200042, SLMAQM11GR635, and SLMAQM11GR0635. The arrangement creates a circular flow of taxpayer money, with federal funds flowing to Soros-linked organizations that then support left-wing activism, protests, and Democrat-aligned groups.

In addition to funding Soros-linked organizations directly, USAID awarded more than $27 million to the Tides Center, an organization that has received tens of millions of dollars from Soros’s Open Society Foundations.

The Tides Center functions as a donor-advised fund that masks the identity of original donors. Its grants do not disclose which donor directed the funds, and the IRS does not require donor disclosure. Tides founder Drummond Pike stated, “Anonymity is very important to most of the people we work with.” In 2023, the Tides network took in nearly $800 million, with major donors including Soros, the Rockefeller Brothers Fund, and the Ford Foundation.

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