DOGE Eliminates Millions in Foreign Aid Grants, Streamlining Federal Spending

Created: JANUARY 05, 2025

The Department of Government Efficiency (DOGE), under the leadership of Elon Musk, has announced the cancellation of $4.5 million in foreign aid grants. This move is part of a broader initiative to optimize federal spending and streamline government operations.

Among the cancelled grants were funds allocated for alpaca farming in Peru ($903,811), addressing social discrimination against recyclers in Bolivia ($364,500), and fostering cultural understanding of Venezuelan migrants in Brazil ($323,633). Additional cuts targeted agricultural projects in El Salvador, Guatemala, Honduras, and Ecuador, as well as beekeeping initiatives in Brazil.

White alpacas looking at the camera

The Inter-American Foundation, the agency responsible for distributing these grants, has seen its budget drastically reduced, leaving it with a single active employee, according to a DOGE statement. Established by executive order under President Trump, DOGE has been tasked with overhauling the federal government within an 18-month timeframe.

Elon Musk

As of March 4th, DOGE reports significant savings through contract and grant terminations, lease cancellations, and a combination of other cost-cutting measures, totaling over $105 billion. These measures include fraud detection and deletion, contract and lease renegotiations, asset sales, workforce reductions, programmatic changes, and regulatory savings.

USAID workers leave HQ in DC after being laid off on the advice of DOGE

Despite these reported successes, DOGE has faced criticism regarding its extensive access to federal systems and its authority to cancel contracts and implement agency cuts. The organization has also targeted diversity, equity, and inclusion (DEI) initiatives, consulting contracts, and leases for underutilized federal buildings, further fueling debate about its methods and impact.

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