The media world was buzzing recently when allegations surfaced that several news outlets, including Politico, received hefty sums from the federal government. This all kicked off during President Trump’s administration, with a focus on revamping the United States Agency for International Development (USAID). Trump himself didn’t hold back, suggesting it might be “the biggest scandal of them all, perhaps the biggest in history!”
Amidst the spotlight on USAID, the Trump administration raised eyebrows by questioning some of its spending choices. Press Secretary Karoline Leavitt didn’t mince words, labeling these as a mix of “crap” and “waste and abuse.” She laid out examples of the agency’s spending, pointing to initiatives that seemed more than a little offbeat.
Leavitt rattled off a list that included “$1.5 million to advance DEI in Serbia’s workplaces, $70,000 for a DEI musical in Ireland, $47,000 for a transgender opera in Colombia, and $32,000 for a transgender comic book in Peru.” These expenditures were just the tip of the iceberg, according to her. The revelation about USAID’s expenses raised some eyebrows and plenty of questions.
It turned out that USAID had also paid for Politico subscriptions, sparking a flurry of reports. A quick search on USASpending.gov showed that the federal government, not just USAID, had spent over $8 million on the media outlet last year. However, some reports inaccurately claimed USAID alone was responsible for millions in fees.
In reality, USAID made just two payments to Politico: $20,000 in 2023 and $24,000 in 2024. Leavitt addressed the issue during a press conference, expressing her surprise about the media funding from USAID. She assured the public that the Department of Government Efficiency (DOGE) was working to stop these payments.
Trump took to Truth Social to voice his opinion, stating, “Looks like billions of dollars have been [stolen] at USAID, and other agencies, much of it going to the fake news media as a ‘payoff’ for creating good stories about the Democrats.” He even suggested it could rival past scandals in magnitude.
With confusion over who exactly funded Politico, left-leaning media outlets jumped in to label the $8 million claim as a “false right-wing conspiracy theory.” Lead Stories published a fact-check article, acknowledging that while USAID didn’t spend over $8 million on Politico, other federal agencies did. CNN criticized Leavitt for amplifying what they called a “bogus claim.”
The revelation that USAID paid Politico subscription fees highlighted a more significant issue: federal agencies using taxpayer dollars to fund media outlets they should be scrutinizing. In 2021, the New York Times reported Politico’s annual revenue hovered around $200 million.
Data from USASpending.gov showed that from fiscal year 2016 through 2025, the federal government paid Politico more than $34 million. Politico’s affiliate, Capitol News Company LLC, also received $4.5 million from fiscal year 2011 through 2023. But Politico wasn’t alone in receiving government funds.
Since fiscal year 2009, the Associated Press received $37.5 million from the federal government. The Washington Post reported similar payments for subscriptions to its outlet, noting that Politico’s fees were “significantly higher than many of its peers.” This sparked criticism from conservatives who view such funding as a conflict of interest.
Blaze News senior politics editor Christopher Bedford commented, “This is just a real look into how the swamp operates.” He pointed out that if media outlets are receiving millions in government subscriptions, they are largely taxpayer-funded. Bedford questioned the independence of these outlets if their income relies heavily on government funds.
Politico had not responded to Blaze News’ request for comment. However, Politico CEO Goli Sheikholeslami and editor-in-chief John Harris sent a memo to staff, addressing the controversy. They emphasized that government subscriptions were part of a broader discussion on journalism funding.
In their memo, they insisted Politico “has never been a beneficiary of government programs or subsidies— not one cent, ever, in 18 years.” They explained that Politico Pro provides both private and public clients with detailed reporting and real-time intelligence across key policy areas.
The Associated Press also released a statement regarding its government contracts, noting that it has been an AP customer across both Democratic and Republican administrations. They explained that governments often license AP’s nonpartisan journalism, just like thousands of other outlets worldwide.
As the debate over media funding continues, some argue that these subscriptions are merely standard practice for accessing news content. However, the controversy has stirred questions about the independence and integrity of media outlets receiving government payments.
