(Kyle Anzalone, Libertarian Institute) During the opening days of the second Donald Trump administration, the White House has worked to rein in and scale down government agencies that distribute foreign aid. The Inter-American Foundation (IAF) is next on the chopping block.
On Friday, Trump appointed Peter Marocco as head of the IAF, fired the agency’s president and CEO Sara Aviel, and removed its board of directors. Marocco is now the sole board member and chairman, according to an employee speaking with the Guardian.
Members of the IAF attempted to push back on Trump’s move. Eddy Arriola, one of the board members removed by Trump, sent a letter to the White House. “We do not consider the assignment of Peter Marocco to the role of board chairman, sent via email to the IAF Chief Operating Office on February 28, 2025, to be a valid appointment as required by IAF’s enabling statute,” he wrote.
He added that the power structure of the IAF was to remain “unaltered.” Arriola instructed Aviel to “deny access to IAF’s systems and files to anyone outside the organization,” likely referring to the Department of Government Efficiency (DOGE).
Arriola’s appeal was unsuccessful as Marocco and DOGE gained access to the agency on Monday. Additionally, the agency’s 37 employees were placed on paid leave.
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
On Tuesday, the DOGE X account reported that the agency had been reduced to one 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),” the post said.
DOGE went on to identify several IAF programs that it cut. “$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.” The post continued, “$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, and $39,250 for beekeeping in Brazil.”
The IAF was not the first US aid agency to be axed by Trump. USAID has largely been dissolved, with its remaining functions moved under the control of the State Department. Additionally, the National Endowment for Democracy (NED), a US-funded organization, lost its financial backing from Washington, forcing it to halt all partner support.
USAID and the NED are infamous for funding non-governmental organizations overseas to help Washington complete regime change operations, as the latter agency did in Ukraine in 2004 and 2014. Marocco was involved with the dismantling of USAID and serves as Trump’s director of foreign assistance at the State Department.
On Wednesday, the Supreme Court ruled that Trump must restore $2 billion in frozen funds that were to be distributed by USAID. It is unclear what impact the ruling will have on Trump’s attempt to close the IAF.
This article originally appeared at The Libertarian Institute.
