In February 2025, social media was flooded with claims about the U.S. Agency for International Development (USAID), accusing it of corruption and wasteful spending. High-profile figures, including President Donald Trump and Elon Musk, amplified these allegations on X (formerly Twitter), fueling public skepticism about government funding. However, a Forbes investigation revealed that many of these claims were either misleading or completely false.

Criticism of USAID intensified as Trump’s administration worked to scale back foreign aid, arguing that taxpayer dollars were being misused. Trump positioned the agency as an example of government waste, aligning with his broader strategy of reducing overseas spending.

Elon Musk played a role in the controversy by using his platform to promote claims that USAID had secretly funneled millions into questionable projects and influential individuals. Other prominent figures, such as billionaire investor Bill Ackman and tech entrepreneur Marc Andreessen, also contributed by sharing conspiracy-laden posts. This created a wave of viral misinformation, shaping public perception and fueling distrust in USAID’s operations.

One of the most widely shared claims alleged that Chelsea Clinton personally received $84 million from USAID. In reality, the Clinton Health Access Initiative—a nonprofit healthcare organization—received funding in 2019 for work in Zambia. Chelsea Clinton herself did not financially benefit, making the claim entirely false.

Another rumor suggested that USAID paid celebrities such as Ben Stiller, Angelina Jolie, and Sean Penn to visit Ukraine for a publicity stunt. Although these celebrities did visit Ukraine, they funded their own trips. Stiller publicly denied the claims, and Sean Penn’s legal team even threatened legal action against those spreading the misinformation.

Perhaps one of the most politically charged falsehoods was the allegation that USAID paid Politico millions to write favorable coverage of Democrats. In reality, Politico only received a modest $44,000 in government subscriptions to Politico Pro, a standard industry service. Despite this, Trump cited the misinformation to make broader claims about media corruption.

Another surprising false claim came from White House Press Secretary Karoline Leavitt, who alleged that USAID allocated $50 million for condoms in Gaza. This assertion had no factual basis. While USAID does support family planning programs worldwide, there was no evidence to support this specific claim.

While some accusations were entirely false, USAID has funded initiatives that have sparked political controversy. These include:

– A $1.5 million program promoting LGBTQ+ workplace inclusion in Serbia
– A $2 million grant supporting transgender organizations in Guatemala

These projects drew criticism from Trump, Senator Ted Cruz, and conservative commentators, who argued that such expenditures were unnecessary and wasteful. However, USAID maintains that programs like these align with its broader mission of promoting human rights and international development.

The backlash against USAID reflects a broader issue with misinformation on social media. High-profile figures like Musk and Ackman played a significant role in amplifying misleading claims, exposing millions of people to false narratives. This demonstrates how social media can be used to push political agendas and influence public opinion, even when evidence contradicts the claims.

By February 7, Forbes’ investigation had debunked the most prominent falsehoods, but the damage had already been done. The rapid spread of misinformation highlights the urgent need for better media literacy and fact-checking mechanisms. Meanwhile, the debate over USAID’s future continues, with Trump pushing to cut its operations and political influencers maintaining their skepticism toward foreign aid.

As discussions around USAID’s funding and purpose evolve, the agency remains a focal point in America’s broader debate over government spending and international assistance.