The Blob War
4th February 2025
ZMan does a deep dive.
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.