A federal audit has uncovered that USAID funneled up to $800 million to a politically connected contractor to carry out Vice President Kamala Harris’s widely criticized plan to tackle the “root causes” of migration from Central America. The recipient—PMCG CollaborateUp JV LLC—secured the massive contract through an opaque, no-bid process and is now under scrutiny for potential corruption.
The contract was structured as an “indefinite delivery” agreement, allowing the firm to pull hundreds of millions of taxpayer dollars without public accountability or project-specific oversight. Critics say it functioned as a blank check with zero transparency.
The Biden administration claimed the initiative would reduce illegal immigration by boosting development in Guatemala, Honduras, and El Salvador. But insiders now allege the money was mismanaged, poorly tracked, and awarded to a firm with a checkered history—including allegations of bribery and fraudulent billing on other U.S.-funded international projects.
After President Trump returned to office, his administration canceled the contract earlier this year and launched an internal review. Officials familiar with the investigation describe the deal as “a textbook example of bureaucratic waste and political favoritism.”
Adding to the controversy, the same contractor was awarded a separate contract backed by the General Services Administration worth up to nearly $1 trillion, raising further alarms about how federal agencies are awarding taxpayer-funded development deals.
“This isn’t aid—it’s a slush fund masquerading as policy,” one senior oversight official said. “Vice President Harris outsourced her job to a firm that had no business handling that kind of money.”
Lawmakers are now preparing hearings and demanding documents. With tens of billions already spent on foreign aid programs linked to the migration crisis, the revelations are likely to reignite calls for sweeping reform—and for accountability from those who greenlit the deal.
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