The United States Agency for International Development (USAID) has come under intense scrutiny following allegations by Republican Congressman Scott Perry that the agency has been funneling taxpayer dollars to terrorist organizations, including Boko Haram, ISIS, and Al-Qaeda.
Perry made the claims during the inaugural hearing of the Subcommittee on Delivering on Government Efficiency on Thursday, alleging that USAID has become a conduit for terrorist financing under the guise of humanitarian aid.
During the hearing, titled “The War on Waste: Stamping Out the Scourge of Improper Payments and Fraud,” Perry stated that USAID distributes $697 million annually, with large sums allegedly ending up in the hands of Islamist militants and terrorist training camps.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
“Who gets some of that money? Does that name ring a bell to anybody in the room? Because your money—$697 million annually, plus the shipments of cash—funds Madrasas, ISIS, Al-Qaeda, Boko Haram, ISIS Khorasan, terrorist training camps. That’s what it’s funding,” Perry declared.
His accusations have added to long-standing concerns about USAID’s operations, with critics arguing that America’s foreign aid policies have been exploited by corrupt individuals and rogue actors in recipient countries.
Perry also pointed to massive fraud in USAID-funded projects, particularly in Pakistan and Afghanistan, where billions of dollars have reportedly been mismanaged or vanished without accountability.
In Pakistan, Perry noted that $136 million was allocated for the construction of 120 schools, yet there is no evidence that any of them were built.
“But you know what? We doubled down and spent $20 million from USAID to create educational television programs for children unable to attend physical school. Yeah, they can’t attend it, because it doesn’t exist. You paid for it. Somebody else got the money,” Perry said.
In Afghanistan, he highlighted the absurdity of spending $60 million annually on a Women’s Scholarship Endowment, despite the Taliban’s ban on female education and public speaking.
The lack of proper oversight by the US government over USAID’s funding has further fueled speculation that these allegations may hold more truth than fiction. Over the years, despite clear instances of fraud and misappropriation, USAID has continued to pump billions into questionable programs with little accountability.
Nigerian investigative journalist David Hundeyin, in reaction to Trump’s suspension of USAID, raised a pertinent question: “Why does a philanthropic donor watch the people he is donating money to live more lavishly than him, and yet decide to keep giving them more money? He must either be the world’s greatest dumbass, or he has another reason for giving them that money.”
Hundeyin’s comment underscores the growing suspicion among Nigerians that USAID’s funding of terrorism may not be an accident but rather a deliberate policy with ulterior motives.
The Nigerian military has repeatedly accused Non-Governmental Organizations (NGOs) of sponsoring or aiding terrorists in the Northeast, an allegation many did not take seriously until now.
Trump and Musk Move to Shut Down USAID
President Donald Trump, who has long accused USAID of corruption and inefficiency, has suspended its operations, pending an investigation into its alleged funding of terrorism and rogue operations.
Trump’s Department of Government Efficiency (DOGE)—headed by billionaire Elon Musk—is actively working to dismantle government bureaucracy and cut off wasteful expenditures, with USAID being a primary target.
Musk has been particularly vocal, calling USAID “a viper’s nest of radical-left Marxists who hate America” and accusing it of financing bioweapon research, including COVID-19, which he claims killed millions of people.
Trump, in a statement, declared: “We are dismantling USAID and every other agency that has misused taxpayer dollars. No more funding of terrorism, no more corruption. This will send shockwaves through the system.”
Nigerians Expect Terrorist Activities to Decline Following USAID Suspension
With USAID now under investigation and its operations suspended, many Nigerians have expressed hope that terrorist activities, particularly Boko Haram’s attacks, will significantly decline.
For years, Boko Haram has had access to advanced weaponry, large sums of money, and sophisticated logistics, raising questions about who has been funding the group. If Perry’s allegations are accurate, it means that a significant source of Boko Haram’s financing may now be cut off.
Security analysts in Nigeria are now calling for a thorough probe into USAID’s financial dealings in the country, demanding that the government track and trace every dollar that has entered the country under USAID programs.