GAO Finds State Department Lacked Guidance on Aid Changes

By Marcus Bennett Detroit, MI · POLITICS DESK

Published Updated 3 min read

The Government Accountability Office reported the State Department lacked documented guidance for foreign assistance changes and could not provide staffing data. USAID terminated 6,780 awards worth $79.1 billion.

The State Department lacked documented guidance for making foreign assistance changes and was unable to produce requested staffing data during a Government Accountability Office review. The agency also could not provide data on its staffing levels for the eleven-month period specified by the reviewers.

The U.S. Agency for International Development terminated approximately 6,780 of 7,510 foreign assistance awards between January 2025 and March 2026. The value of obligations for these terminated awards from their inception until March 2026 totaled $79.1 billion.

USAID staff numbers decreased from about 13,600 worldwide in January 2025 to 241 staff in April 2026. The State Department announced that USAID ceased administering foreign assistance awards as of July 1, 2025.

Remaining active USAID awards managed by the State Department represented about $52.1 billion as of March 2026. The Europe and Eurasia region held the highest dollar value of these remaining active awards at that time. The same region also had the highest dollar value of terminated USAID awards as of March 2026.

Why It Matters

The lack of documented guidance and staffing data reflects broader issues identified in prior audits. The Government Accountability Office previously noted the State Department's failure to produce timely and accurate budgetary reporting, citing staffing gaps as a contributing factor. In a 2026 evaluation, the Department of State Office of Inspector General found that the State Department had not adequately addressed prior recommendations related to improving the timeliness of budgetary reporting.

Timeline

The President issued an executive order in January 2025 pausing U.S. foreign development assistance programs. One agency has been unable to disburse funds to awardees since January 2025. In a 2025 congressional notification, the State Department acknowledged its intent to reorganize USAID functions by July 1, 2025, but did not provide detailed documentation on how it would manage the transition, including staffing and guidance for foreign assistance changes.

What's New

The Government Accountability Office identified systemic documentation gaps in USAID's foreign assistance tracking for Ukraine, noting the absence of a process to monitor crisis-specific funding status as of 2024. GAO's 2025 review of USAID's direct budget support in Ukraine found that monitoring was paused in January 2025, aligning with the State Department's broader failure to maintain documented guidance during foreign assistance transitions.

In a 2025 audit, the USAID Office of Inspector General found that the State Department had not completed its implementation plan to carry out USAID realignment. The State Department's 2025 reorganization plan required transferring $159 billion in foreign assistance authority, with 50% of awards terminated by March 2025 under Executive Order 14169, according to a USAID Office of Inspector General audit. The Office of Personnel Management emphasized the 'right person with the right skills' principle in 2025, which the State Department failed to implement during the realignment.

How Sources Differ

The State Department Office of Inspector General stated that the State Department's 2025 reorganization plan to realign USAID functions required transferring $159 billion in foreign assistance authority, with 50% of awards terminated by March 2025 under Executive Order 14169.

It said that the State Department announced that USAID ceased administering foreign assistance awards as of July 1, 2025.

It said that the State Department lacked documented guidance for making foreign assistance changes as of the review.

It said that the U.S. Agency for International Development terminated approximately 6,780 of 7,510 foreign assistance awards between January 2025 and March 2026.

It said that eight of the nine agencies reviewed decreased funding for foreign assistance awards.

fact_check Facts

The U.S. Agency for International Development terminated approximately 6,780 of 7,510 foreign assistance awards between January 2025 and March 2026.
The value of obligations for the terminated USAID awards from their inception until March 2026 was $79.1 billion.
Remaining active USAID awards managed by the State Department represented about $52.1 billion as of March 2026.
USAID staff decreased from about 13,600 worldwide in January 2025 to 241 staff in April 2026.
The State Department announced that USAID ceased administering foreign assistance awards as of July 1, 2025.
Eight of the nine agencies reviewed by the Government Accountability Office decreased funding for foreign assistance awards.
One agency has been unable to disburse funds to awardees since January 2025.
The Europe and Eurasia region had the highest dollar value of terminated USAID awards as of March 2026.
The Europe and Eurasia region had the highest dollar value of remaining active USAID awards as of March 2026.
The State Department lacked documented guidance for making foreign assistance changes as of the Government Accountability Office review.
The State Department was unable to produce data on its staffing levels during the eleven months requested by the Government Accountability Office.

menu_bookBackground & Context

Context and data our newsroom added to the originating report.

The President issued an executive order in January 2025 pausing U.S. foreign development assistance programs.
The Government Accountability Office (GAO) identified systemic documentation gaps in USAID's foreign assistance tracking for Ukraine, noting the absence of a process to monitor crisis-specific funding status as of 2024, which mirrors the State Department's later failure to provide staffing data.
The Office of Personnel Management (OPM) emphasized the 'right person with the right skills' principle in 2025, which the State Department failed to implement during USAID's realignment, as noted in the State Department OIG's 2025 report on workforce planning gaps.
GAO's 2025 review of USAID's direct budget support (DBS) in Ukraine found that monitoring was paused in January 2025, aligning with the State Department's broader failure to maintain documented guidance during foreign assistance transitions, as reported in GAO-25-107057.
In a 2025 audit, the USAID Office of Inspector General found that the State Department had not completed its implementation plan to carry out USAID realignment, leaving a lack of clear guidance and structure for managing the transition of foreign assistance functions.
In a 2025 congressional notification, the State Department acknowledged its intent to reorganize USAID functions by July 1, 2025, but did not provide detailed documentation on how it would manage the transition, including staffing and guidance for foreign assistance changes.
The State Department's 2025 reorganization plan to realign USAID functions required transferring $159 billion in foreign assistance authority, with 50% of awards terminated by March 2025 under Executive Order 14169, according to a USAID Office of Inspector General audit.
The Government Accountability Office (GAO) previously highlighted the State Department's failure to produce timely and accurate budgetary reporting, citing staffing gaps as a contributing factor, which aligns with the current issue of the State Department lacking documented guidance and staffing data during reviews.
In a 2026 evaluation, the Department of State OIG found that the State Department had not adequately addressed prior GAO recommendations related to improving the timeliness of budgetary reporting, suggesting a pattern of insufficient documentation and data management.

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