The $489 million warning: what the USAID watchdog said was at risk, what was actually lost, and who was in charge

People and organizations

Trump administration, Donald Trump, United States Congress

Places

United States, United Arab Emirates, Global

Evidence label

Primary record — A court filing, ruling, agency document, executive order, inspector general report, official dataset or regulator order that we opened directly. More

Research records

C033

What happened

On February 10, 2025, the USAID Office of Inspector General issued an advisory alert saying that the State Department's January 24 pause on foreign assistance, combined with plans to place more than 90 percent of USAID's workforce on administrative leave, had sharply reduced the agency's ability to oversee $8.2 billion in obligated but undisbursed humanitarian funds [1]. Citing USAID staff, the alert said uncertainty over conflicting instructions had put more than $489 million of food assistance "at ports, in transit, and in warehouses at risk of spoilage, unanticipated storage needs, and diversion," and that more than 500,000 additional metric tons of Food for Peace commodities were at sea or awaiting shipment [1].

The next day, February 11, 2025, the White House fired Inspector General Paul Martin without giving a reason, according to U.S. officials cited by the Associated Press [2].

Why it matters

"At risk" is not the same as "destroyed," and the record now allows the two to be separated. The alert was a warning about the consequences of decisions made by the administration: the freeze, the stop-work orders and the staff removals [1]. What followed is documented in three inspector general inspections released June 16, 2026 and in the State Department's own statements [5][4]. USAID ceased operating as an independent agency after a March 28, 2025 announcement, and its food assistance programs transferred to the State Department on July 1, 2025, which is why the inspector general's recommendations are now addressed to State [5].

The evidence

In May 2025, Reuters reported that 60,000 to 66,000 metric tonnes of food valued at more than $98 million, enough to feed 3.5 million people for a month, was sitting in USAID warehouses in Djibouti, South Africa, Dubai and Houston because contract cancellations and frozen payments had stalled shipping, and that stocks expiring as early as July were likely to be destroyed [3].

In July 2025 the State Department confirmed it had destroyed 500 metric tons of high-energy biscuits stored in Dubai because they had expired [4]. Sen. Jeanne Shaheen, the top Democrat on the Senate Foreign Relations Committee, pressed Deputy Secretary Michael Rigas on the destruction and secured a commitment to inventory the remaining stockpiles [4].

The inspector general's 2026 inspections, which examined inventory as of June 2025, found a mixed picture. In Djibouti, of $21 million in food aid, more than $17 million had not been allocated to any distribution partner, $10 million was at risk of passing its best-used-by date before reaching a destination, and $2.9 million had already spoiled [5]. The spoilage, however, was attributed to vendor packaging defects on food that had arrived in January 2024, before the freeze; it was still in the warehouse in November 2025, having incurred more than $460,000 in storage costs [5]. A further $1.5 million was infested because USAID had not enforced temperature-control requirements [5]. In Houston, $18.8 million in food aid was in storage; all of it had been allocated for shipment by mid-September 2025, though inspectors observed pest activity and inventory discrepancies [6]. In Durban, more than $4 million in vegetable oil and sorghum had all been distributed by September 2025 [7].

Response and counterpoints

State Department spokeswoman Tammy Bruce said "If something is expired, we will destroy it," characterized the Dubai destruction as less than 1 percent of annual U.S. food assistance, and said such destruction had occurred under previous administrations [4]. Rigas told senators the administration did not intend for food aid to expire and go to waste [4]. The inspector general's reports also fault USAID's pre-existing contract enforcement, not only the 2025 disruption [5][6].

What remains uncertain

The $489 million figure came from USAID staff estimates at a moment of disruption and was a measure of exposure, not loss; no comprehensive accounting of how much of it was ultimately delivered, delayed or destroyed has been published [1]. The inspector general's inspections covered only three warehouses and a June 2025 snapshot; they did not cover Dubai or the 500,000 metric tons at sea [5]. The dollar value of the destroyed Dubai biscuits was not stated by the State Department [4]. The AP reported that Rigas committed to produce an inventory of stockpiles; this project has not located a published one [4]. The Djibouti spoilage predates the administration and should not be counted as a consequence of the freeze, although the continued storage costs through late 2025 occurred under State's management [5]. The inspector general's firing is documented; the reason is not, because the White House gave none [2].

Money and method

Entity: USAID Bureau for Humanitarian Assistance (programs transferred to the Department of State on July 1, 2025) [5]. Money types: $489 million is a staff estimate of food aid exposed to risk as of February 2025 [1]; $98 million is a Reuters-reviewed inventory value for four warehouses in May 2025 [3]; $21 million, $18.8 million and $4 million are inspector general inventory values as of June 2025 [5][6][7]. Documented losses: $2.9 million spoiled and $1.5 million infested in Djibouti (inspector general), and 500 metric tons destroyed in Dubai (State Department, no dollar value) [5][4]. These figures cover different dates and scopes and are not additive.

Sources cited

1. [1]
   Humanitarian assistance oversight alert — USAID Office of Inspector General, 2025-02-10.

   supports · Page 1 'Introduction' ($8.2 billion obligated but undisbursed); 'Background' (January 24, 2025 pause, waivers, plan to place more than 90 percent of workforce on leave); section 'Food Assistance ... at Risk of Diversion and Spoilage' (more than $489 million at ports, in transit, and in warehouses; Houston $39 million, Djibouti $40 million, South Africa $10 million; 500,000 metric tons at sea or ready to ship) · checked 2026-10-26 · source S040
2. [2]
   White House fires USAID inspector general after warning about funding oversight, officials say — Associated Press, 2025-02-11.

   supports · Paragraphs 1-6: Inspector General Paul Martin fired February 11, 2025, one day after the alert; White House gave no reason; alert called oversight 'largely nonoperational' · checked 2026-10-26 · source N-usaid-oversight-food-aid-at-risk-01
3. [3]
   Exclusive: US aid cuts leave food for millions mouldering in storage — Reuters, 2025-05-16.

   supports · Summary bullets and paragraphs 1-9: 60,000 to 66,000 metric tonnes valued over $98 million in Djibouti, South Africa, Dubai and Houston; some stocks due to expire as early as July likely to be destroyed; State Department spokesperson statement · checked 2026-10-26 · source N-usaid-oversight-food-aid-at-risk-02
4. [4]
   US says it destroyed 500 metric tons of expired food aid but it won't affect future distribution — Associated Press, 2025-07-17.

   supports · Paragraphs 1-4 and Bruce quotes ('If something is expired, we will destroy it'); Shaheen exchange with Deputy Secretary Rigas; Rigas statement that the intention was not to let food expire · checked 2026-10-26 · source N-usaid-oversight-food-aid-at-risk-03
5. [5]
   Emergency Food Assistance: Over $17 Million of Food Aid Stored in USAID's Djibouti Warehouses Was Not Allocated for Distribution, and Weaknesses in Oversight Contributed to Spoilage and Infestation (E-000-26-004-M) — USAID Office of Inspector General, 2026-06-16.

   supports · 'Why We Did This Inspection' (March 28, 2025 announcement; July 1, 2025 transfer to State) and 'What We Found' ($21 million as of June 30, 2025; $17 million unallocated; $10 million at risk; $2.9 million spoiled due to vendor packaging defects, arrived January 2024, still in warehouse November 30, 2025; $1.5 million infested); eight suggested actions for State · checked 2026-10-26 · source N-usaid-oversight-food-aid-at-risk-04
6. [6]
   Emergency Food Assistance: USAID Stored Over $18 Million of Food in Houston Warehouses, but Deficiencies in Storage and Inventory Conditions May Increase Risk of Waste (E-000-26-002-M) — USAID Office of Inspector General, 2026-06-16.

   supports · 'What We Found': $18.8 million in Houston as of June 13, 2025; $3.4 million allocated at inspection; remainder allocated by mid-September 2025; pest activity and inventory discrepancies · checked 2026-10-26 · source N-usaid-oversight-food-aid-at-risk-05
7. [7]
   Emergency Food Assistance: USAID Durban Warehouses Were Generally in Good Condition, but Limited Storage Gaps May Increase the Risk of Contamination or Spoilage (E-000-26-003-M) — USAID Office of Inspector General, 2026-06-16.

   supports · 'What We Found': over $4 million of vegetable oil and sorghum in Durban as of June 20, 2025; sorghum (92 percent of value) unallocated at inspection; all distributed by September 2025 · checked 2026-10-26 · source N-usaid-oversight-food-aid-at-risk-06