The most surprising and most consequential event of the President Trump sequel has been the USAID scandal. No one thought that part of his revenge tour would be a direct assault on one of the main centers of the foreign policy hive. Until now, few people had any knowledge of this entity. Now it is in the center of the news because Trump has shut it down and put Musk and his whiz kids to the task of auditing the organization while the staff paces outside in the streets.
The United States Agency for International Development (USAID) was sort of created by Congress in 1961 as a way to regulate foreign aid. Congress did not actually create an organization to do this. It directed the White House to create an organization, which is how the independent, not-for-profit entity called USAID came into existence and how it has operated ever since. It gets money through the State Department for its various programs, but it also raises money on its own.
To this point, there has been no oversight of USAID. It has been free, for example, to give money to George Soros organizations that do things like back candidates for state prosecutor in the United States. That seems like an odd use of foreign aid, but it really is the tip of the iceberg, which is why Trump is closing it down. That lack of oversight plus decades of existence created an organization that was operating like a government outside the government that financed it.
Of course, much of its activity was aimed at foreign governments. USAID backed the failed color revolution in Georgia last year. It was through the many local operations it supported that it was able to get people into the streets. The reason they did this is the Georgia parliament passed a law banning foreign money in politics. Georgia did not want to be the next Ukraine. The 2005 Orange revolution in Ukraine and the 2014 Maiden coup in 2014 were both underwritten by USAID.
There is another aspect of the USAID scandal. One of the organizations it funds is called National Endowment for Democracy, which like USAID is an independent not-for-profit that was created by the National Security Decision Directive 77, signed by Ronald Reagan in 1981. The alleged purpose is to spread democracy, but in reality, it is just another wealthy node in the informal network of formal and informal nodes that make up the shadow government.
There you see how this thicket of not-for-profits and quasi-government institutions not only control foreign policy, but domestic policy. Hundreds of billions flow out of the Treasury through the budgets of the government agencies into this massive ecosystem that uses that money to control domestic politics. If you want to know why voting has had no bearing on public policy for decades, there is the answer. What matters to the politicians is this massive ecosystem, not your vote.
This is why the elected officials in Washington have been relatively quiet about what is happening not far from their offices. The party sent out some extras and understudies to perform in front of the USAID building, but otherwise they have remained quiet because they imagine Musk digging through the files, seeing things that they would prefer remain out of the public eye. USAID is just one problem. The DOGE team is analyzing every penny going out the door at Treasury right now.
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