US State Department plans $12m in grants to UK conservative groups

The Trump administration intends to allocate $12 million in grants to three UK-based organisations founded or led by prominent British Conservatives, including Jacob Rees-Mogg and Toby Young. The funding, originating from the State Department’s Bureau of Democracy, Human Rights, and Labor (DRL), comprises $7 million for the 878 think tank, $5 million for Free Speech Union International, and $3 million for the Jobs Foundation. All awards are designated as “sole source,” bypassing standard competitive bidding processes. The disclosure has drawn sharp criticism from former US officials, who cite procedural irregularities and potential misuse of taxpayer funds to influence foreign politics. The move presents a diplomatic challenge to incoming UK Prime Minister Andy Burnham and has prompted concern from German Chancellor Friedrich Merz regarding foreign interference in European affairs.

The specific allocations target groups with ideological alignment to the current US administration. The $7 million grant is directed to 878, a think tank co-founded by Rees-Mogg and Dr Radomir Tylecote, which describes its mission as ending mass immigration and rediscovering ancient culture. Incorporated in the UK in March 2026, the group’s US nonprofit registration is listed as pending. The State Department justified the award by citing 878’s “unique role” in advancing fundamental freedoms, although the organisation’s website only went live in early July 2026. The remaining $5 million is designated for Free Speech Union International, an offshoot of Toby Young’s Free Speech Union, aimed at promoting free speech and countering digital overregulation across the UK, Europe, and Australia.

The third allocation of $3 million is for the Jobs Foundation, a UK charity led by former Vote Leave chief Matthew Elliott. The foundation, which has fewer than 10 employees, will use the funds for a program titled “Countering Overregulation to Advance American Investment.” Its chief executive, Georgiana Bristol, is a former development director of the TaxPayers’ Alliance. A spokesperson for the Jobs Foundation stated that the charity is under consideration for project funding to support international economic research and expressed a desire to work with the incoming Labour government.

Former US officials have condemned the grants as a misuse of public money to influence European politics. Five former officials described the lack of competitive procedure as “outrageous and absurd” and “horrible stewardship of US taxpayer money,” alleging a months-long effort by Trump-aligned individuals to subvert normal funding procedures. One official noted that sole-source awards typically require significant legal justification for entities with unique capabilities, arguing that these groups are being funded to bypass legal and competitive processes. The State Department stated that grants are undergoing “standard and rigorous vetting” and decisions are under “active deliberation,” though congressional notification documents the intent to award these specific sums.

The disclosure presents an early transatlantic challenge for incoming UK Prime Minister Andy Burnham, who has stated he will be “very upfront” with the US administration regarding disagreements. German Chancellor Friedrich Merz also responded to the prospect of grants to MAGA-aligned groups, stating he does not want the American government to interfere in German elections. While Toby Young noted that Free Speech Union International has expressed interest in applying but has not yet submitted a formal application, Rees-Mogg and Tylecote did not respond to requests for comment. The grants are part of a broader shift in State Department programming that has caused dismay among veterans of the department.