“The administration’s plan to use more than $19 billion in previously allocated funds constitutes an extraordinary use of taxpayer money. Using billions of dollars to shut down U.S. foreign aid programs—instead of pursuing the international development, health, security, or economic initiatives for which these funds were intended—requires the closest scrutiny by Congress,” Shahin wrote in her statement.
The senator stated that Congress must receive a complete list of the projects being shut down, the reasons for their termination, the amounts of funding involved, and information about the countries affected. According to her, lawmakers have repeatedly requested this information but have not yet received a complete response.
It’s not just about the cost of winding down the programs
Typically, winding down major international programs requires settling accounts with contractors, fulfilling contractual obligations, resolving legal issues, and decommissioning infrastructure facilities.
According to the senator’s letter, this involves approximately 5,600 terminated USAID grants and contracts. She requested information on the cost of procedures already completed, potential litigation costs, and an assessment of whether the total amount could exceed $19 billion.
In addition, Congress requested data on the closure of USAID properties, including the termination of leases, the sale or transfer of facilities, as well as information on 31 facilities that were still pending resolution at the time of the request.
The situation surrounding USAID could affect organizations, contractors, and countries participating in U.S. development, health care, economic assistance, and security programs.
For the U.S. budget, the key issue remains not only the political decision to cut foreign aid but also the cost of the process of winding down existing commitments. If the costs of closing out programs turn out to be higher than initial estimates, this could become the subject of additional scrutiny by Congress.
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