Foreign Aid Spending Stalled as Trump Administration Defies Congressional Directives

The Trump administration is facing allegations of violating federal law by refusing to follow specific congressional directives regarding foreign aid spending, a move legal experts and lawmakers argue constitutes a violation of federal law and an escalation of a constitutional crisis. Despite Congress appropriating $9.4 billion for global health and over $5 billion for humanitarian aid, officials have delayed disbursements, withheld funds, and reclassified money as “unallocated” to exert executive control. Key actions include the use of “pocket rescissions,” the withholding of contributions to the Global Fund, and the transfer of USAID functions to the State Department with reduced staffing. Legal experts and lawmakers argue these measures undermine Congress’s constitutional authority of the purse.

ProPublica’s review of government records and interviews indicates that eight months into the fiscal year, the State Department has obligated only $190 million of the $9.4 billion earmarked for global health, a figure that advocacy group Aid on the Hill describes as 5% of the average spending for the same period in the previous five years. The Office of Management and Budget (OMB), led by Director Russell Vought, has labelled more than $500 million in global health money as “unallocated,” requiring OMB approval before the State Department can spend it, effectively creating a bottleneck. Legal scholars say such moves, and the delayed spending by the State Department, likely violate the law.

The administration has diverted $3.2 billion from funds earmarked by Congress for global health and development to cover severance fees and other costs associated with the termination of USAID programs last year. Jeremy Lewin, who lacks prior humanitarian experience, has funneled $3.8 billion to the UN Office for the Coordination of Humanitarian Affairs (OCHA), quadrupling its budget from US sources, despite the administration’s previous criticism of the UN. The State Department has failed to file required reports and has not responded to letters from lawmakers regarding compliance with appropriations, with a spokesperson claiming an 80% reduction in outstanding reports and letters.

The administration is withholding an additional $661 million from the Global Fund, despite congressional instructions to make contributions “in a timely manner,” according to congressional staff and advocacy groups. State Secretary Marco Rubio has faced scrutiny over these delays, with Senator Brian Schatz noting that the State Department is underfunding the Global Fund and is out of compliance with congressional appropriations. Rubio stated during testimony that the funds would move “shortly, very quickly,” but no further action has been confirmed.

The OMB’s actions have drawn sharp criticism, with Democratic lawmakers calling the diversion of funds an “appalling admission of waste of U.S. taxpayer dollars.” As of mid-June, lawmakers had not received a response to their demands that the administration use the $3.2 billion as directed. The administration continues to defend its actions, with a State Department spokesperson stating they are working to obligate all appropriated balances consistent with law, while OMB spokesperson Rachel Cauley dismissed the reporting as “patently false.”