USAID’s Gravy Train Is Over—Criminal Referrals Expected

Officials within the U.S. Agency for International Development (USAID) and its grant recipients may soon face criminal referrals as the Trump administration investigates widespread misuse of taxpayer funds.

During a closed-door briefing with the House Foreign Affairs Committee on Wednesday, Acting USAID Chief Pete Marocco reportedly informed lawmakers that fraud and abuse at the agency were far worse than initially believed.

Rep. Keith Self (R-TX), a member of the committee, confirmed the development in an interview with The Daily Mail, stating that federal charges are being considered for individuals involved in fraudulent spending within USAID.

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“Apparently, there’s still judicial action that has even come out as late as this morning,” Self said. “They intend to refer USAID officials to DOJ.”

Self emphasized that fraud is a “criminal act” and that charges could apply not only to USAID personnel but also to organizations that received funds through the agency.

“If they are detecting outright fraud, not just bad programs, not just ignoble programs, not just programs that don’t support the national interest of the United States, if they’re finding fraud, then absolutely the wrongdoers should be prosecuted,” Self added.

He further noted that the Trump administration likely has solid documentation supporting these allegations. “You’re going to have to have a paper trail to prove that. And I doubt that they would refer anyone without a very strong paper trail.”

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Another source present during the briefing confirmed to The Daily Mail that Marocco revealed the extent of waste, fraud, and abuse within USAID was significantly more severe than previously suspected.

“Marocco briefed the full House Foreign Affairs Committee, Democrats and Republicans, that the waste, fraud, and abuse at USAID was more severe than initially presumed,” the source said.

Marocco reportedly disclosed that “multiple” criminal referrals to the Department of Justice (DOJ) were under consideration.

The alleged misconduct stemmed from USAID’s decentralized accountability system, which left grant recipients on the ground with little oversight on how American tax dollars were spent.

“The conduct in question arose because of USAID’s decentralized accountability system that often left grantees on the ground using American tax dollars in ways that were both inappropriate and potentially illegal,” the source explained.

Rep. Brian Mast (R-FL), chairman of the foreign affairs panel, also confirmed that Marocco was concerned about USAID’s structure and its lack of accountability.

“Mr. Marocco was very clear in exposing the waste that goes on out there and in pointing out the way that many of these programs in State and USAID were designed to not be accountable,” Mast told The New York Times after the meeting.

According to The Washington Examiner, Self added that there was “a brief mention” of litigation but no specifics given, stating that the possibility of criminal referrals indicated a strong case.

“If they’re telling members of Congress that they are even considering a referral, I would think they’ve got a pretty good case or they think they’ve got a pretty good case,” Self said.

“We go by the rule of law, so if there’s criminal activity, I would expect them to refer them to a DA, DOJ, AG, somebody. It’s as simple as that.”

Last month, the same committee held a public hearing detailing significant USAID expenditures that lawmakers flagged as wasteful. Among the most notable examples:

• $65.7 million spent on vasectomies in the Congo
• $14.9 million allocated to “enhancing leadership” skills of LGBTQ-identifying Cambodians

In addition, Trump’s newly established Department of Government Efficiency (DOGE) has identified billions of dollars in wasteful spending across federal agencies, sparking backlash from congressional Democrats.

Some congressional Democrats voiced frustration over the closed-door nature of Marocco’s briefing, arguing that the session was too short and did not allow for sufficient questioning.

The Hill reported that the meeting lasted only an hour, with each lawmaker limited to 30 seconds to ask questions, while Marocco had two minutes to respond.

Meanwhile, Republican lawmakers continue to push for deeper investigations into USAID’s spending, signaling that more revelations could emerge as the review progresses.

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