The Department of Government Efficiency’s decision to drastically cut the workforce of the Inter-American Foundation has sparked significant political controversy.
Quick Takes
- Peter Marocco remains as the sole employee and head of the Inter-American Foundation (IAF).
- Congressional Democrats oppose the executive order, citing overreach of executive authority.
- The agency previously contributed significantly to development projects in Latin America and the Caribbean.
- Legal and political challenges against the workforce cuts are in progress.
Trump’s Executive Order
The decision to restructure the Inter-American Foundation (IAF) by reducing its staff from 48 to one was initiated by an executive order from President Donald Trump. The operational reshaping directed by Elon Musk’s Department of Government Efficiency (DOGE) has led to debates about executive authority. Congressional Democrats argue that the move exceeds the limits of executive power, while some emphasize the importance of Congressional approval to dissolve such an agency.
Peter Marocco, a loyalist known for supporting Trump’s policies, has been appointed to navigate the agency’s future. Previously, the IAF managed a $60 million budget directed at community-led development projects in Latin America and the Caribbean, delivering over 5,800 grants since its inception in 1969. Critics fear the agency’s decreased capacity will undermine U.S. diplomatic influence in these regions.
Controversial Appointments and Actions
Peter Marocco’s position was confirmed as the sole member of a new board after firing the IAF’s president, Sara Aviel, and terminating the agency’s bipartisan board of directors. Eddy Arriola, a former agency chairman, disapproved of Marocco’s appointment, arguing, “We do not consider the assignment of Peter Marocco…to be a valid appointment as required by IAF’s enabling statute.”
The DOGE’s abrupt staffing reductions have resulted in placing most employees on paid administrative leave, and the American Federation of Government Employees is considering legal action. Democrat critics, including Senator Jeanne Shaheen, called the administration’s actions “unlawful and unacceptable,” emphasizing that only Congress should have the ability to dissolve or eliminate the IAF.
Broader Implications
The executive directive also targeted other independent agencies. Projects in multiple Latin American countries stand canceled, with continued opposition from some members of Congress who view the restructuring as harmful to U.S. international influence. Congressmen Joaquin Castro, Cory Booker, and Tim Kaine stress that, “Only an act of Congress— not an executive action—can dissolve or eliminate the IAF.”
The cuts have sparked fears of a power vacuum, possibly reducing the role the U.S. plays in development initiatives. Moving forward, the actions taken against the IAF are likely to become a contentious subject of legislative and legal challenges. Observers are watching closely how these decisions will unfold and impact future U.S. relations with Latin American and Caribbean nations.
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
