The Department of Government Efficiency (DOGE), led by Elon Musk, announced Tuesday that it had drastically reduced the Inter-American Foundation (IAF), leaving only one employee in the agency.
The move follows an executive order from President Trump last month deeming the agency “unnecessary.”
DOGE revealed the cuts in a post on X, stating, “The Inter-American Foundation, an agency whose primary action was to issue federal grants ($60 million budget), has been reduced to its statutory minimum (1 active employee).”
The Inter-American Foundation, an agency whose primary action was to issue foreign grants ($60M budget), has been reduced to its statutory minimum (1 active employee). Examples of grants that were cancelled in the process:
– $903,811 for alpaca farming in Peru
– $364,500 to…— Department of Government Efficiency (@DOGE) March 4, 2025
Elon Musk Called This Financial News ‘Terrifying’
The announcement came hours before President Trump’s address to Congress.
Following the department’s action, the only remaining employee at the IAF is Peter Marocco, who was appointed to lead the agency last Friday.
Marocco, who previously oversaw the reduction of foreign aid programs at the United States Agency for International Development (USAID) and the State Department during Trump’s first term, now presides over the scaled-down agency.
Prior to the cuts, the IAF employed 48 staff members with an average annual salary of $131,000.
The agency, established by Congress in 1969, was designed to fund “localized community-led development” through grants to countries in Latin America and the Caribbean.
According to reports, it had issued over 5,800 grants totaling more than $945 million since 1972, with 425 active projects as of October.
Following its restructuring, the IAF’s website was shut down, leaving only an error message on its homepage. DOGE also released a list of canceled contracts, including:
- $903,811 for alpaca farming in Peru
- $364,500 to reduce social discrimination of recyclers in Bolivia
- $813,210 for vegetable gardens in El Salvador
- $323,633 to promote cultural understanding of Venezuelan migrants in Brazil
- $731,105 to improve marketability of mushrooms and peas in Guatemala
- $677,342 to expand fruit and jam sales in Honduras
- $483,345 to improve artisanal salt production in Ecuador
- $39,250 for beekeeping in Brazil
These grants were originally presented by the IAF as part of its broader mission to assist “marginalized communities” in the region.
The restructuring of the IAF follows President Trump’s February 19 executive order, which called for the reduction of non-essential government agencies, including the IAF, the Presidio Trust, the U.S. African Development Foundation, and the U.S. Institute of Peace.
The executive order directed agencies to “eliminate non-statutory components and functions to the maximum extent consistent with applicable law” and reduce staff to “the minimum presence required by law.”
Congressional Democrats have criticized the move, arguing that the White House overstepped its authority.
In a letter to the administration, Sen. Cory Booker, Sen. Tim Kaine, Rep. Joaquin Castro, and Rep. Debbie Wasserman Schultz stated, “Only an act of Congress – not an executive action – can dissolve or eliminate the IAF.”
They argued that any attempt to shut down the agency through executive action “violates the law and exceeds the constitutional limits of executive authority.”
The lawmakers also warned that dismantling the IAF could “undermine U.S. leadership in the region and create a power vacuum that adversarial powers would exploit to expand their influence.”
Despite opposition, DOGE moved forward with its action.
On Monday, Marocco and DOGE officials arrived at the IAF’s Washington, D.C., headquarters.
By the end of the day, employees were informed via email that Marocco had taken control and that they had been laid off.
Eddy Arriola, the agency’s former Senate-confirmed chairman, had previously instructed its leadership to prevent outside access to its systems and files.
However, with Marocco’s appointment, those orders were overridden.
Prior to taking over the IAF, Marocco was a Dallas-based conservative political activist.
He has been a vocal supporter of Trump and has previously echoed claims regarding the legitimacy of the 2020 election.
Reports also allege that he and his wife, Merritt Corrigan, were identified at the U.S. Capitol on January 6, 2021, based on facial recognition and personal identifiers.
The restructuring of the IAF is part of a broader effort by the Trump administration to streamline government operations and eliminate what it considers redundant federal programs.
With Congress expected to challenge the move, the fate of the agency remains uncertain.
HAPPENING NOW:
Anti-Trump protesters stormed the Rayburn House office building to protest Peter Marocco, the head of the Inter-American Foundation.
(Insurrection ???)
Marocco was recently appointed to his position by President Trump.
The protesters are demanding that more… pic.twitter.com/cwugIYSSsl— Laura Loomer (@LauraLoomer) March 5, 2025
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