Politico, a prominent political news outlet, has failed to pay employees for the latest pay cycle, citing a “technical error.” This disruption comes amid revelations that Politico received $8.2 million from USAID over the last year, raising concerns about media independence and the intertwining of journalism with government funding. The scandal has drawn significant attention, particularly from critics questioning whether this relationship compromised Politico’s editorial integrity.
USAID, the United States Agency for International Development, is typically associated with international aid projects aimed at promoting development and stability abroad. However, the discovery that a major domestic media outlet received such substantial funds has led to sharp criticism. While USAID occasionally funds domestic programs through indirect channels, its primary mission has been global outreach.
A newly surfaced government spending report reveals that Politico received $8.2 million from USAID through 237 transactions. This funding spiked significantly during fiscal year 2024, under the Biden administration, with most funds concentrated in that single year. The dramatic increase in USAID allocations to Politico, as depicted in the report, has triggered widespread criticism over the potential for conflict of interest in its editorial coverage.
The bulk of this funding coincided with the outlet’s continued coverage of key political events, including critiques of the MAGA movement and former President Donald Trump. This has raised suspicions among conservative voices, particularly in light of recent actions by Trump and Elon Musk to halt USAID allocations to Politico. Critics argue this funding arrangement may have compromised Politico’s editorial independence.
Employees at Politico were informed that payroll delays were due to a “technical issue.” Yet, the timing of these delays, coupled with the abrupt cessation of USAID funding, has fueled speculation that the organization is financially reliant on government grants. It has been reported that employees at Politico has now been paid.
Media watchdogs and critics have been vocal about the implications of such funding. David Smith, a prominent media critic, noted, “The relationship between USAID and Politico presents a troubling precedent. Regardless of intent, such funding jeopardizes public trust and creates an inherent perception of bias in journalism.”
The report, published on USASpending.gov, details a year-by-year breakdown of USAID’s financial contributions to Politico. Prior to fiscal year 2024, Politico’s funding from USAID was negligible. However, during that fiscal year, Politico’s funding surged into the millions, leading to speculation about the motivations and usage of these funds.
The payroll disruption, coupled with this funding revelation, puts Politico in a precarious position. While the organization has yet to address these concerns publicly, calls for greater transparency regarding USAID funding and its role in media operations are growing louder.