A Senate Democratic report issued Thursday alleges that measures taken by the Trump administration to restructure U.S. foreign policy and government agencies have resulted in more than $19 billion in wasted taxpayer funds. The report, endorsed by every Democrat on the Senate Foreign Relations Committee, offers a detailed assessment of the financial impact of the administration’s efforts to shift the federal government’s diplomatic apparatus toward an "America First" agenda.
The report criticizes the administration for dismantling key foreign policy institutions, including the closure of the U.S. Agency for International Development (USAID) and the dismissal of thousands of federal employees focused on diplomatic and foreign aid work. It highlights that these actions have weakened U.S. global influence and undermined congressional oversight.
One example cited is over $300 million in aid allocated to counter Russian influence in Europe and Central Asia that was left unused and expired last October. Additionally, around $25 million intended to combat Russian criminal activities was reportedly redirected to other priorities without congressional approval.
The report draws on correspondence from the administration estimating that the shutdown of USAID could cost as much as $19 billion as thousands of contracts are terminated or renegotiated. The abrupt halt in foreign aid operations, ordered in early 2025 under the Department of Government Efficiency initiative led by Elon Musk, left supplies such as food and vaccines stranded internationally. Some stockpiles remain in government storage at ongoing expense, while other aid has expired and been discarded.
Senator Jeanne Shaheen of New Hampshire, the panel’s top Democrat, stated that the administration has become “a leading source of government waste” despite promises to eliminate inefficiency and fraud. The report also notes approximately $255 million spent on paid leave for federal employees who were either fired or accepted buyouts from the State Department, USAID, and USA Global Media, a broadcasting service shut down in 2025.
The report further contends that the traditional diplomatic corps has been marginalized, with authority shifting to personal envoys such as Jared Kushner and Steve Witkoff. Witkoff, a businessman and longtime Trump associate who serves as a special envoy for Middle East affairs, is also involved in efforts to mediate the Russia-Ukraine conflict. Democrats raise concerns about potential conflicts of interest tied to Witkoff’s business connections. His son is co-founder of World Liberty Financial, a crypto firm partially owned by a United Arab Emirates national security adviser, who acquired a significant stake shortly before Trump resumed the presidency.
The White House defended these decisions, with spokeswoman Olivia Wales stating that USAID had long been plagued by a lack of accountability and excessive spending on what she called a “woke wish list.” She also denied conflicts of interest involving Witkoff, emphasizing his divestment from World Liberty Financial.
With midterm elections looming, Democrats have signaled intent to intensify oversight and investigations into the administration’s foreign policy and management practices. Senator Chris Coons of Delaware, set to become the committee’s top Democrat, announced plans to question Elon Musk regarding the administration’s handling of the Starlink internet service’s availability to Ukraine.