USAID’s Office of the Inspector General (OIG) issued an Alert Notice on February 10, 2025, highlighting the risks and challenges in safeguarding and distributing USAID’s $8.2 billion in obligated but undisbursed humanitarian assistance funds. These challenges arise due to Rubio’s pausing foreign assistance programs and USAID’s subsequent personnel actions that have significantly reduced the operational capacity of its Bureau of Humanitarian Assistance (BHA), formerly known as the Office of Foreign Disaster Assistance (OFDA).
USAID employs around 10,000 staff, with about two-thirds posted overseas. BHA is responsible for providing essential humanitarian aid and employed approximately 1,089 staff. When USAID staff were placed on administrative leave starting February 8, 2025, they lost access to USAID email and IT systems, including the Global Acquisition and Assistance System (GLAAS) and the financial system. While some BHA staff were exempt from admin leave, hundreds of BHA’s institutional support contractors were furloughed under stop work orders. BHA staff also do not have access to their disaster relief ops center now that USAID has been taken off the lease at the Ronald Reagan Building.
An estimated 90% of BHA’s workforce was affected by these actions while State approved waivers allowed $8.2 billion in undisbursed obligations to flow. The OIG states that staff reductions and unclear communications have significantly impacted USAID’s capacity to disburse and safeguard humanitarian aid and oversight controls are largely nonoperational.
The Alert Report noted that the Partner Vetting System has been significantly hindered, leaving USAID susceptible to inadvertently funding terrorist-associated entities. The use of contractors for third party monitoring in high-risk areas has also been suspended, leaving USAID unable to verify delivery of relief in dangerous locations in Ukraine, Afghanistan and other high-risk areas. USAID-funded commodities and supplies in these regions are more susceptible to diversion and product substitution.
The pause in foreign assistance funding led to delayed shipments of in-kind food assistance globally, even though emergency food assistance had a waiver. USAID-funded implementers also faced conflicting instructions and were concerned about violating restrictions on external communications. While waivers were granted for emergency and lifesaving humanitarian assistance, uncertainties about their scope and permissible communications have limited BHA’s response capabilities.
The Alert Report on the vulnerabilities to the humanitarian program was the professional and responsible act of an Inspector General. Shortly after the Alert was released, the White House fired Paul Martin, USAID’s Inspector General.
If it’s still on the OIG webpage, you can read the report here.
