USAID sits on $19B closeout fund as Musk's DOGE 'woodchipper' kills hundreds of thousands
WASHINGTON, DC: The shuttered US Agency for International Development (USAID) has informed Congress that it holds a staggering $19 billion in unspent funds intended to cover the costs of its own termination.
The notification, obtained by The Hill, details a massive stockpile of capital that critics argue is being illegally withheld while global needs reach record highs due to conflict and previous aid cuts.
The agency was effectively dismantled last year following a takeover led by tech billionaire Elon Musk and his Department of Government Efficiency (DOGE).
Describing the process as feeding the agency "into the woodchipper," the administration locked out staff and terminated programs within a $40 billion annual budget.
Researchers now estimate that this sudden cessation of support resulted in the deaths of more than 500,000 children and 260,000 adults.
Billion-dollar closeout fund remains unspent
According to the April 20 notification, the $19 billion includes over $625 million in unobligated funds from 2024 and $3.2 billion from 2025, specifically earmarked for global health and development.
Additionally, more than $15 billion is tied up in unliquidated obligations for Development Objective Agreements (DOAGs), typically five-year grants between the US and foreign nations.
The administration claims these resources are needed for "closeout costs," such as final settlements, pending invoices, and asset disposition. However, the notification admits that the actual price of shutting down the agency is "anticipated to be substantially less than these total amounts."
Former officials warn that this unspent sum accounts for nearly half of the State Department’s entire foreign assistance budget for the current year.
Democrats demand release of health aid
Senate Democrats have slammed the withholding of $3.2 billion in fiscal 2025 funds as an "unnecessary and illegal impoundment."
In a letter led by Senator Brian Schatz (D-Hawaii), 17 lawmakers demanded the funds be used for their intended purpose: saving lives. These funds, signed into law by President Trump in March 2025, are set to expire this September.
The contested funding includes critical allocations for global health, specifically encompassing $300 million for programs to combat HIV/AIDS and $250 million dedicated to malaria initiatives.
Furthermore, the withheld resources include $320 million intended for maternal and child health programs and $650 million for global health security.
Lawmakers argue there is no justification for withholding these resources to cover "wasteful costs" incurred by the decision to dismantle the agency.
Terminated programs leave millions vulnerable
The human cost of the shutdown is illustrated by the termination of a single $69 million program in Niger.
According to Save the Children, that program alone provided life-saving services, including immunizations and malnutrition treatment to 1.4 million women and 1.1 million children.
While the administration reportedly utilized $15 million of USAID funds for the security of Acting Administrator Russell Vought, global health security remains underfunded. Humanitarian experts urge the administration to honor the bipartisan commitment to protecting families in crisis.
If closeout costs are indeed lower than anticipated, leftover funds may eventually be transferred to the Department of State, though no timeline for such a transfer has been provided.
