WASHINGTON — On Tuesday, the White House dismissed the inspector general of the U.S. Agency for International Development (USAID), according to several officials. This action came shortly after the inspector general’s office expressed concerns about the Trump administration’s restructuring efforts, stating that it has severely hindered their ability to track $8.2 billion in unspent humanitarian assistance funds.
The reason for the removal of Inspector General Paul Martin was not disclosed by the White House. The news of his dismissal was first reported by CNN, and the officials who provided the information did so anonymously as they were not authorized to speak publicly about the matter.
Inspectors general typically operate as independent entities within government agencies to identify and eliminate issues related to waste, fraud, and abuse. Previously, the Trump administration dismissed over a dozen inspectors general from their positions.
On Monday, Martin’s office issued a critical report indicating that the recent funding freezes and administrative actions taken by the Trump administration have rendered oversight of humanitarian aid almost non-functional. This includes a significantly diminished capability to guarantee that the unspent $8.2 billion does not end up in the hands of violent extremist groups or mismanaged in conflict-ridden areas, according to the watchdog organization.
Additionally, a lawsuit was filed on Tuesday, alleging that the Trump administration’s rapid dismantling of USAID has left American businesses struggling with hundreds of millions in outstanding payments for work already completed. The funding freeze has allegedly led to job losses for U.S. contractors and suppliers linked to USAID, including significant layoffs at companies like Chemonics International, which has reportedly put about 750 employees on furlough, as stated in the lawsuit.
The lawsuit emphasizes the detrimental effects of the administration’s actions, arguing that businesses, both large and small, are being forced to cease operations, which ultimately affects vulnerable populations worldwide who are already facing issues such as hunger and disease. Groups representing 170 small businesses, major suppliers, organizations assisting displaced individuals, the American Bar Association, and others have collectively joined this legal challenge.
The lawsuit targets President Trump, Secretary of State Marco Rubio, acting USAID Deputy Administrator Peter Marocco, and Russell Vought, director of the Office of Management and Budget. This marks at least the third legal action regarding the administration’s swift dismantling of USAID and its global programs, which have drawn criticism from both Trump and high-profile supporters like Elon Musk, who argue that its activities do not align with the president’s policy goals.
Under a January 20 executive order issued by Trump, Marocco, Musk, and Rubio have implemented a complete freeze on foreign aid and have significantly downsized USAID operations. A separate legal challenge by federal employees’ associations has temporarily prevented the administration from removing thousands of USAID employees from their positions. However, the funding freeze and other related actions continue, including the agency losing its Washington headquarters lease.
Reports indicate that contracts were terminated by the new administration without providing the legally required 30-day notice and without settling payments for completed work. Affected individuals have requested anonymity due to fears of repercussions from the administration.
One of USAID’s main partners, Chemonics, is facing $103 million in unpaid bills and is dealing with nearly $500 million worth of orders for vital supplies such as medication and food that are currently delayed, according to the lawsuit. The potential consequences of delayed health commodities could be catastrophic, possibly resulting in as many as 566,000 deaths due to untreated illnesses like HIV/AIDS and malaria, as well as unmet reproductive health needs, including 215,000 pediatric fatalities.
The lawsuit contends that the Trump administration lacks the authority to obstruct programs and funding mandated by Congress without explicit approval.
Marocco defended the funding halt, claiming it was necessary due to issues of insubordination and noncompliance among USAID staff, which warranted a complete review of the aid programs to determine what could proceed. He stated that this process needed to take place to ensure the administration could resume its parliamentary programs in international aid.
In the meantime, seven Republican lawmakers from agricultural states have put forward legislation aimed at protecting a $1.8 billion food aid program managed by USAID by transferring its Food for Peace initiative to the Department of Agriculture. This funding freeze has also had adverse effects on the agricultural sector, prompting Kansas Republican Sen. Jerry Moran to express gratitude to Rubio for helping facilitate the release of $560 million worth of American agricultural products that were intended for global hunger relief but had been stuck in ports due to the abrupt cut-off in foreign aid spending.
