GAO says State Department and USAID failed to evaluate effectiveness of $1.2 billion China counter-influence programs

The Government Accountability Office has faulted the State Department and the U.S. Agency for International Development for poor oversight of a $1.2 billion program portfolio intended to counter Chinese influence around the world, according to a report summarized by The Washington Times. The GAO found the agencies did not consistently evaluate whether the funded activities were effective, leaving officials without reliable evidence to guide decisions about ongoing spending and future allocations.

The GAO review described the spending as part of a broader effort by the U.S. government to respond to perceived influence operations by the People’s Republic of China. While the State Department and USAID moved money through international programs, the GAO concluded they did not adequately determine program outcomes and performance results, according to the report summary.

GAO’s criticism centers on program evaluation and performance management. In its assessment, the watchdog said State and USAID spent substantial funds but failed to ensure that the programs included sufficient mechanisms to measure effectiveness, identify what worked, and determine whether corrective action was needed when results were unclear. Without that type of evaluation, the GAO said, it is difficult to establish accountability for outcomes.

The findings are likely to draw attention as agencies weigh how to structure future counter-influence initiatives. GAO audits and recommendations typically require agencies to respond and describe steps to improve compliance, internal controls, and performance measurement. In this case, the review’s key complaint is not only that spending occurred, but that the government did not build an adequate evidence base for whether the taxpayer-funded programs achieved their intended effects.

The State Department and USAID oversee major foreign assistance and diplomatic programming. When those activities involve influence, information, and governance-related work abroad, the need for clear objectives and measurable outcomes can be especially important, since policy goals can be harder to verify than basic service delivery. GAO’s conclusions therefore raise questions about how program requirements were designed and how results were tracked across the $1.2 billion effort.

The next steps would be driven by the agencies’ response to GAO’s recommendations, including any changes to monitoring and evaluation practices. GAO follow-up work, if conducted, would typically focus on whether the agencies implement stronger metrics, improve reporting, and ensure that decision-makers can distinguish successful programs from ineffective or low-impact ones.

For U.S. taxpayers and affected communities abroad, the audit underscores a basic accountability standard: when government funds are used to pursue strategic objectives overseas, agencies must be able to show what outcomes were achieved and why. GAO’s findings suggest the State Department and USAID did not meet that standard for this particular portfolio, according to the report summary.