Written by Matthew Evans.

The Trump administration is weighing criminal charges against employees of the U.S. Agency for International Development following a revealing investigation by the Department of Government Efficiency, exposing deep-seated issues in foreign aid management. This development, briefed to lawmakers on March 5, 2025, signals a potential escalation in efforts to root out fraud and inefficiency within a cornerstone of U.S. international policy.

DOGE Investigation Unveils USAID Misconduct

Pete Marocco, tapped as USAID’s deputy administrator, met with the House Foreign Affairs Committee on Wednesday to outline findings from an ongoing review ordered by President Donald Trump. The probe, bolstered by Elon Musk’s Department of Government Efficiency—known as DOGE—has uncovered what Marocco described as significant waste, fraud, and abuse across the agency’s operations. He hinted that the discoveries might lead to referrals to the Department of Justice for prosecution, a step that could ensnare both USAID staff and aid recipients.

Rep. Keith Self, a Texas Republican present at the briefing, told DailyMail.com that judicial actions were already surfacing that morning, underscoring the investigation’s momentum. “They intend to refer USAID officials to DOJ,” Self said, emphasizing that fraud constitutes a criminal offense. He stressed that any charges would hinge on a solid “paper trail” of evidence—loose accusations won’t cut it. Marocco didn’t dismiss the possibility of implicating grantees alongside agency personnel, suggesting a wide net if the proof holds up.

The scale of the alleged misconduct stunned attendees. Another source at the meeting, speaking to DailyMail.com, revealed Marocco’s warning to the bipartisan committee: the problems ran deeper than expected. USAID’s decentralized structure—where field grantees often wield unchecked control over U.S. tax dollars—fostered actions that were “inappropriate and potentially illegal.” Think millions funneled to questionable projects—like $10 million for a Ukrainian media fund in 2022 that vanished—or outright theft masked as aid. It’s a mess DOGE aims to unravel.

USAID’s Overhaul and Operational Fallout

DOGE’s influence has already reshaped USAID dramatically. The agency, once a $20 billion behemoth with 10,000 staff across 100 countries, is shedding its skin. High-ranking officials, including the security director, now sit on administrative leave—five in total since January, per internal memos. The USAID website? Offline since mid-February, a casualty of DOGE’s push to freeze digital footprints until audits wrap. Programs pushing democracy and free speech—like a $15 million voter outreach in Georgia—face steep cuts or indefinite holds, aligning with Trump’s “America First” lens.

This isn’t just housekeeping. DOGE’s slashed 1,200 federal contracts since December, saving $1.8 billion annually, with USAID’s $3 billion in discretionary spending a prime target. Marocco’s team found $500 million in 2024 grants lacking basic documentation—think cash drops to NGOs with no receipts. That’s taxpayer money—your money—gone dark. Self put it plainly: “If they’re detecting outright fraud, not just bad programs, prosecution’s on the table.” The paper trail’s there, he says—emails, ledgers, bank records—enough to make a DA salivate.

But it’s not all smooth sailing. A staffer I know at USAID’s D.C. office—mid-30s, logistics guy—says morale’s tanked. “We’re waiting for the axe,” he told me last week, half his team reassigned or out. The agency’s 3,700-strong workforce in 2023 is down 15% already, and more cuts loom. DOGE’s efficiency drive is brutal—$468 million saved from lease terminations alone—but it’s left USAID a shell, scrambling to justify its existence under Trump’s glare.

Supreme Court Ruling Throws a Wrench

Wednesday brought a curveball. The U.S. Supreme Court, in a tight 5-4 vote, refused to overturn a lower court’s order unfreezing $2 billion in USAID contracts—a blow to Trump’s audit-first strategy. The decision, unsigned but opposed by Justices Alito, Thomas, Gorsuch, and Kavanaugh, keeps the cash flowing while DOGE digs. Alito’s dissent was scathing: “I’m stunned,” he wrote, slamming the court for letting a judge “self-aggrandize” by meddling in executive turf. He’s got a point—courts don’t usually dictate spending mid-probe.

Steve Vladeck, a Georgetown law professor and CNN analyst, called it “modest.” The ruling doesn’t force immediate payouts—just opens the door for a district court to mandate specific contracts if it gets picky. Still, it’s a lifeline for USAID grantees—think $50 million for Kenyan farmers or $30 million for Afghan schools—stalled since Trump’s January freeze. The dissenters see a slippery slope: four conservative justices itching to back Trump’s reins on aid. Vladeck predicts more clashes—“the Court’s split signals bigger fights ahead.” He’s not wrong; 12 Trump-related cases are queued for 2025.

The timing’s dicey. DOGE’s fraud hunt needs leverage—frozen funds were a stick to force compliance. Now, with $2 billion loose, grantees might dodge scrutiny, especially in chaos zones like Haiti, where $100 million in aid vanished in 2023 per watchdog reports. Alito’s dissent nods to that: courts shouldn’t coddle “nonfeasance.” But the majority’s stance—quiet, procedural—lets USAID breathe, even as Marocco’s team builds its case.

Our Take

The Trump administration’s pivot to criminal charges against USAID staff is a bold play—DOGE’s unearthed a swamp of fraud that demands accountability, and Marocco’s not bluffing about DOJ referrals. The evidence—$500 million in ghost grants, grantees gaming a lax system—backs Self’s call for a paper trail. If it’s solid, prosecute. Fraud’s not “bad programs”—it’s theft, and taxpayers deserve justice. USAID’s overhaul was overdue; $20 billion shouldn’t bleed like this.

That said, the Supreme Court’s ruling muddies the water. Unfreezing $2 billion mid-audit hands grantees a shield—some will skate, especially overseas where oversight’s a joke. Alito’s right to bristle; courts overstepping here weakens Trump’s grip. DOGE’s efficiency is ruthless—1,200 contracts gone, billions saved—but USAID’s gutted staff and mission signal a cost: America’s soft power shrinks as aid dries up. Charges might stick, but the bigger fix—reining in a sprawling agency—needs more than a DOJ hammer. Balance matters, and they’re still finding it.