In a sweeping move that has sparked considerable backlash, the Trump administration, alongside Elon Musk’s Department of Government Efficiency, has downsized the Inter-American Foundation to just one employee.
Key Insights
- Peter Marocco, a Trump loyalist, became head of the IAF, appointed as its sole board member and chairman.
- Most of the foundation’s staff were put on paid administrative leave as the White House ignored directives to maintain governance.
- Democrats warn that Trump’s executive orders overstep legal boundaries, violating the constitutional limits of executive authority.
- The foundation’s drastic reduction is part of a larger strategy to eliminate certain independent agencies.
The Downsize Decision
Peter Marocco has taken charge of the Inter-American Foundation, appointed shortly after the firing of the previous president, Sara Aviel. The White House proceeded with this reorganization, reducing the agency’s original 48 employees to just one. This transition was accompanied by the suspension of most staff on paid administrative leave.
Criticism is mounting, especially from congressional Democrats, highlighting the significant risk to U.S. diplomatic interests in Latin America and the Caribbean without the foundation’s full operational capacity. The Inter-American Foundation’s primary goal had been the distribution of grants aiding local development projects, making its reduced functionality a cause for concern.
Political and Legal Ramifications
The executive order driving these changes aims at permanently shutting down the functions of several agencies, which critics claim overextends executive power. “Only an act of Congress—not an executive action—can dissolve or eliminate the IAF,” stated influential Congress members, echoing broader concern about the legality of the administration’s actions.
Despite legal challenges from organizations such as the American Federation of Government Employees, the administration continues to advance its agenda with Congress members expressing the necessity of legislation to counteract the executive order’s impacts.
Impact on Regional Engagement
The IAF, known for issuing over 5,800 grants worth more than $945 million since 1972, faces an operational standstill. This decision not only impairs ongoing projects but threatens the stability of developmental initiatives in a region where U.S. influence is crucial. Cutting down on these functions might create a geopolitical vacuum, thereby diminishing American influence in an already volatile region.
With future operations uncertain under Marocco’s direction, developments at the agency will require careful observation by both domestic policymakers and international partners affected by these decisions.
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
