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USAID Funnels $8.2M in Taxpayer Money to Politico

Recent reports about the U.S. Agency for International Development (USAID) and Politico have sparked discussions about government spending on media subscriptions. Initially, claims circulated that USAID had provided Politico with over $8 million in funding, raising questions about the nature of this financial relationship. However, these claims have been largely debunked and clarified.

According to official records, the actual amount USAID paid to Politico is significantly lower than initially reported. USAspending.gov data shows that USAID allocated $44,000 to Politico during the fiscal years 2023 and 2024 for subscriptions to E&E News, which focuses on energy and environmental topics. This is a far cry from the $8 million figure that was widely circulated.

The larger $8 million figure appears to represent the total government expenditures on Politico subscriptions since 2016, not just from USAID. These subscriptions are primarily for Politico Pro, a premium service that provides policy insights and tracks news and legislation. It’s important to note that these payments are for services rendered, not direct funding or grants to the news organization.

Concerns about the potential influence of government spending on media independence are valid and warrant discussion. However, it’s crucial to distinguish between paying for subscriptions and providing direct funding that could compromise journalistic integrity. In this case, the government, including USAID, is purchasing a service that many private sector entities also use.

The recent payroll issue at Politico, described as a technical glitch, appears to be unrelated to any government funding. Politico has stated that the vast majority of its subscriptions come from the private sector, and they have never benefited from government programs or subsidies.

While transparency in government spending is essential, it’s equally important to ensure that information about such spending is accurately reported and contextualized. The situation with Politico highlights the need for clear communication about government contracts and subscriptions to prevent misunderstandings and unfounded speculation.

In conclusion, while scrutiny of government spending is necessary, the relationship between USAID and Politico appears to be a standard vendor-client arrangement for subscription services, rather than a case of direct funding or undue influence on media operations.

Written by Staff Reports

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