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‘Dark Truth’ Of USAID: House Lawmakers Spotlight Biden’s Foreign Aid Abuses In Fiery Oversight Hearing

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From the Daily Caller News Foundation

By Adam Pack

House Republicans zeroed in on the Biden administration’s use of foreign aid to bankroll left-wing causes that undermine American interests across the world in a heated oversight hearing Wednesday.

House Republicans, led by Delivering on Government Efficiency (DOGE) Subcommittee chairwoman Marjorie Taylor Greene, sought testimony from experts to outline how the United States Agency for International Development (USAID) advanced a left-wing policy agenda during the Biden administration that in turn alienated U.S. allies and made the world less safe for Americans. Democratic lawmakers struggled to defend the worst abuses of USAID funding, such as pushing far-left ideologies on countries with conservative cultures and indirectly financing terrorist groups.

House Oversight Republicans’ hearing on foreign aid comes after President Donald Trump’s Department of Government Efficiency has effectively dismantled USAID and left its future in limbo. Secretary of State Marco Rubio announced Wednesday the Trump administration cut roughly $60 billion in USAID and State Department grants and multi-year awards that it determined did not align with American interests.

Greene also said the DOGE Subcommittee will consider recommending investigations and criminal referrals to those it believes have abused foreign aid. The subcommittee is expected to release a post-hearing review on USAID’s foreign aid abuses next week.

“USAID has been transformed into an America-last foreign aid slush fund to prop up extremist groups, implement censorship campaigns and interfere  in foreign elections to force regime change around the world,” Greene said in her opening remarks. “That is the dark truth about USAID.”

“Taxpayer funds have literally been used to undermine U.S. interests and counter American foreign policy goals under the guise of foreign aid,” Greene continued. “This is unacceptable, and the American people agree.”

More than 60% of Americans believe that U.S. foreign aid is being “wasted on corruption or administration fees,” according to a survey published by the Financial Times on Feb. 17.

Democrats appeared unable to confront the worst USAID abuses that occurred under Biden, and at times, sought to deflect attention to unrelated topics.

After Greene outlined how USAID funding had been funneled to terrorist groups, Democratic New Mexico Rep. Melanie Stansbury, the top Democratic lawmaker on the subcommittee, began her opening remarks with the statement, “Welcome to the Elon Musk chainsaw massacre.”

Stansbury then proceeded to rail against Musk for weighing into Germany’s recent parliamentary elections, Vice President J.D. Vance scolding European elites for abandoning core civil liberties and the president’s recent comments on the Russia-Ukraine War.

Democratic lawmakers’ witness Noam Unger, director of the Sustainable Development and Resilience Initiative at the Center for Strategic and International Studies, struggled to answer a question posed by Texas Republican Rep. Brandon Gill if spending more than $3 million “for being LGBTQ” in the Caribbean aligned with American values.

Stansbury and other Democratic lawmakers on the panel appeared to have learned few lessons about USAID’s abuses. Stansbury notably defended former USAID director Samantha Power’s push to turn the department into a de-facto “climate agency” and attempted to get the experts testifying to agree that USAID should continue to push LGBTQ rights on the rest of the world.

“If we want to do counter China, there’s nothing more that has alienated billions of people than pushing an ideology that they resent,” Max Primorac, who served as USAID’s acting chief operating officer, senior agency vetting official and regulatory reform officer in the first Trump administration, told Stansbury in response. “None of this is counter China. This is counter America.”

“A resounding ‘yes’ that foreign aid can be a powerful tool of diplomacy to promote freedom, prosperity and peace in accordance with our national interest and our values, but not as an instrument of progressive imperialism,” Primorac continued. “Aid officials must ensure that every single foreign aid program can pass the Middle America smell test on waste, fraud and abuse.”

Primorac previously told the Daily Caller that USAID’s left-wing agenda under former President Joe Biden weakened the United States’ influence abroad.

Experts also tore into the Biden administration’s use of foreign aid for damaging the United States’ standing in the world. Biden notably left office with an increasingly unstable world stage, with ongoing wars in Europe and the Middle East.

“It [USAID] has been doing harm while spending more on aid,” Primorac told lawmakers.

There is more world poverty and hunger today, more political instability, and developing countries are more beholden to our adversaries.”

“The fiduciary duty of our aid officials over the past four years has done tremendous damage to foreign aid’s credibility and America’s standing in the world,” Primorac continued.

Despite Trump moving to cut the vast majority of USAID contracts and shut down the agency, most lawmakers on the panel — Republican and Democrat —  still believe the U.S. government should be doling out some foreign aid to counter China’s influence in developing countries and provide relief in humanitarian crises. But foreign aid practices must align with American interests as outlined in the president’s executive order on foreign aid, according to Republican lawmakers.

“That’s just hyperbolic nonsense that we do not recognize that there’s a role to play for the United States in the federal aid space,” Republican Texas Rep. Pat Fallon said Wednesday. “But what we want to expose is $164 million going to radical organizations — $122 million of it to organizations that have aligned, or at least tied to terrorism.”

A DCNF analysis found that more than $1.3 billion taxpayer dollars doled out by the Biden administration ended up in terrorist groups’ coffers.

The hearing was disrupted on two occasions by left-wing protestors in the crowd. An elderly woman was removed after making an “obscene gesture” to an unnamed lawmaker while South Carolina Republican Rep. William Timmons spoke. Another person attending the hearing was promptly removed by police after shouting at lawmakers to stop DOGE.

Greene told the crowd that private individuals, including those in the crowd, were free to fund far-left causes around the world, but no longer would the government be bankrolling left-wing activism on the taxpayer’s dime.

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Trump: China’s tariffs to “come down substantially” after negotiations with Xi

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MXM logo MxM News

Quick Hit:

President Trump said the 145% tariff rate on Chinese imports will drop significantly once a deal is struck with Chinese President Xi Jinping, expressing confidence that a new agreement is on the horizon.

Key Details:

  • Trump said the current 145% tariff rate on China “won’t be anywhere near that high” after negotiations.
  • He pointed to his relationship with Xi Jinping as a reason for optimism.
  • The White House said it is preparing the groundwork for a deal, and Treasury officials expect a “de-escalation” of the trade war.

Diving Deeper:

President Donald Trump on Tuesday told reporters that the steep tariff rate currently imposed on Chinese imports will come down substantially after his administration finalizes a new trade deal with Chinese President Xi Jinping. While the current level stands at 145%, Trump made clear that number was temporary and would be adjusted following talks with Beijing.

“145 percent is very high. It won’t be that high, it’s not going to be that high … it won’t be anywhere near that high,” Trump said from the Oval Office, signaling a shift once a bilateral agreement is reached. “It will come down substantially, but it won’t be zero.”

The tariff, which Trump previously described as “reciprocal,” was maintained on China even after he delayed similar penalties on other trading partners. Those were cut to 10% and paused for 90 days to allow room for further negotiation.

“We’re going to be very nice. They’re going to be very nice, and we’ll see what happens. But ultimately, they have to make a deal because otherwise they’re not going to be able to deal in the United States,” Trump said, reinforcing his view that the U.S. holds the leverage.

Trump’s remarks come as markets remain wary of ongoing trade tensions, though the White House signaled progress, saying it is “setting the stage for a deal with China.” The president cited his personal rapport with Xi Jinping as a key factor in his confidence that an agreement can be reached.

“China was taking us for a ride, and it’s not going to happen,” Trump said. “They would make billions a year off us and build up their military with our money. That’s over. But we’ll still be good to China, and I think we’ll work together.”

Treasury Secretary Scott Bessent also said Tuesday that he expects a cooling of trade hostilities between the two nations, according to several reports from a private meeting with investors.

As the 90-day pause on other reciprocal tariffs nears its end, Trump emphasized that his team is prepared to finalize deals quickly. “We’ve been in talks with many, many world leaders,” he said, expressing confidence that talks will “go pretty quickly.”

White House Press Secretary Karoline Leavitt added that the administration has received 18 formal proposals from other countries engaged in trade negotiations, another sign that momentum is building behind Trump’s broader push to restructure global trade in favor of American workers and businesses.

(Li Xueren/Xinhua via AP)

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2025 Federal Election

Next federal government should end corporate welfare for forced EV transition

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From the Fraser Institute

By Tegan Hill and Jake Fuss

Corporate welfare simply shifts jobs and investment away from other firms and industries—which are more productive, as they don’t require government funding to be economically viable—to the governments’ preferred industries and firms, circumventing the preferences of consumers and investors. And since politicians spend other people’s money, they have little incentive to be careful investors.

General Motors recently announced the temporary closure of its electric vehicle (EV) manufacturing plant in Ontario, laying off 500 people because its new EV isn’t selling. The plant will shut down for six months despite hundreds of millions in government subsides financed by taxpayers. This is just one more example of corporate welfare—when governments subsidize favoured industries and companies—and it’s time for the provinces and the next federal government to eliminate it.

Between the federal government and Ontario government, GM received about $500 million to help fund its EV transition. But this is just one example of corporate welfare in the auto sector. Stellantis and Volkswagen will receive about $28 billion in government subsidies while Honda is promised $5 billion.

More broadly, from 2007 to 2019, the last pre-COVID year of data, the federal government spent an estimated $84.6 billion (adjusted for inflation) on corporate welfare while provincial and local governments spent another $302.9 billion. And crucially, these numbers exclude other forms of government support such as loan guarantees, direct investments and regulatory privileges, so the actual cost of corporate welfare during this period was much higher.

Of course, politicians claim that corporate welfare benefits workers. Yet according to a significant body of research, corporate welfare fails to generate widespread economic benefit. Think of it this way—if the businesses that received subsidies were viable to begin with, they wouldn’t need government support. So unprofitable companies are kept in business through governments’ support, which can prevent resources, including investment and workers, from moving to profitable companies, hurting overall economic growth.

Put differently, rather than fuelling economic growth, corporate welfare simply shifts jobs and investment away from other firms and industries—which are more productive, as they don’t require government funding to be economically viable—to the governments’ preferred industries and firms, circumventing the preferences of consumers and investors. And since politicians spend other people’s money, they have little incentive to be careful investors.

Governments also must impose higher tax rates on everyone else to pay for corporate welfare. In turn, higher tax rates discourage entrepreneurship and business investment—again, which fuels economic growth. And the higher the tax rates, the more economic activity they discourage.

GM’s EV plant shut down once again proves that when governments try to engineer the economy with corporate welfare, workers will ultimately lose. It’s time for the provinces and the next federal government—whoever it may be—to finally put an end to this costly and ineffective policy approach.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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