The uproar over the dramatic workforce cuts at the Inter-American Foundation raises serious questions about executive power and the future of U.S. development programs in Latin America.
Key Takeaways
- Peter Marocco was appointed to lead the IAF amidst workforce cuts.
- The move has been criticized as an overreach of executive power.
- Democrats argue that only Congress can dissolve or eliminate the IAF.
- IAF’s previous role was significant in regional development efforts.
Sweeping Changes in Leadership
Peter Marocco, closely aligned with President Trump, has been appointed to head the Inter-American Foundation (IAF) following significant staffing reductions. The workforce has been trimmed from 48 employees to just one—a change purportedly aimed at government efficiency. This appointment transpired after the White House terminated Sara Aviel, the IAF’s president and CEO, also removing the entire bipartisan board of directors. Marocco now serves as the sole board member and chairman.
“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),” DOGE reports. The staffing cuts have led to most of the IAF’s employees being placed on paid administrative leave. With Marocco and the Department of Government Efficiency (DOGE) team now controlling IAF headquarters, they have requested access to sensitive databases and grantee information, further compounding the concerns raised by critics.
Concerns from Democrats and Legal Challenges
Congressional Democrats have strongly opposed these actions, criticizing them as unlawful and exceeding the scope of executive authority. They emphasize that the decision to dissolve or eliminate the IAF lies solely with Congress. The American Federation of Government Employees Local 2211 is actively exploring legal avenues to reverse these executive decisions.
Marocco, alongside Elon Musk’s DOGE, canceled several grants, presenting them as cost-saving measures. However, these cancellations did not consider that many were multi-year contracts with partial funding from other organizations. With no proposed Republican action, these developments continue unabated.
Implications on Development and Influence
The IAF historically played a pivotal role in tackling the root causes of illegal migration and fostering job creation across Latin America and the Caribbean. The Foundation, established in 1969, had distributed over 5,800 grants worth more than $945 million. By cutting these initiatives, critics warn of potential power vacuums and reduced U.S. influence in the region.
DOGE’s approach has faced scrutiny for its seemingly hasty decisions to dismantle critical infrastructure without due regard for long-term diplomatic consequences. As debates unfold, the legal, ethical, and geopolitical ramifications remain at the forefront of discussions about this fundamental shift in U.S. foreign aid strategy.
Sources:
- White House installs Trump loyalist to lead independent agency in push to reduce foreign aid
- DOGE slashes entire government agency to just ONE staff member
