Monday, July 27, 2026

Evaluation of Department of State Administration of Foreign Assistance Programs Transferred from the U.S. Agency for International Development

United States Department of State Office of Inspector General

Evaluation of Department of State Administration of Foreign Assistance Programs Transferred from the U.S. Agency for International Development

07/27/2026 11:23 AM EDT

What OIG Evaluated

In July 2025, the Department of State (Department) assumed responsibility for select U.S. Agency for International Development (USAID) functions, including the administration of foreign assistance programs and associated awards referred to as the Green List. The Office of Inspector General (OIG) conducted this evaluation to describe the Department’s administration of USAID foreign assistance programs and associated awards transferred to the Department.

What OIG Found

In September 2025, 17 Department bureaus and offices were responsible for administering 1,504 foreign assistance programs and associated awards transferred from USAID. The total obligated value of these Green List awards was $51.5 billion, and their total expected cost surpassed $86 billion. This represents a significant increase in the Department’s foreign assistance portfolio. Additionally, the Green List awards used award mechanisms unfamiliar to Department officials. Moreover, the place of performance for these awards spanned 100 countries, including conflict zones such as Israel and the Palestinian Territories and Ukraine. During this evaluation, Department officials reported issues related to staffing, training, and IT systems access, as well as a lack of comprehensive guidance related to updating the terms and conditions for Green List awards. Prior OIG work identified potential risks that the Department faced with respect to the realignment of select USAID functions to the Department. OIG offered recommendations intended to advance the long-term success of the Department’s realignment efforts. Specifically, OIG recommendations intended to ensure that entities with realignment responsibilities have the appropriate resources and capacity to manage implementation processes, evaluate the Department’s workforce capacity, and develop a strategic workforce plan for its reform efforts. However, as of July 2026, the Department had not fully implemented OIG’s recommendations. The Department’s ability to administer foreign assistance programs and associated awards could be improved if these recommendations are fully implemented.

What OIG Recommends

OIG did not offer new recommendations based on the results of this evaluation. However, OIG encouraged the Department to fully implement the recommendations offered in May 2025 related to resource and workforce capacity, establishing an implementation plan to guide the realignment, and developing a strategic workforce plan to support reform efforts. OIG considers the prior recommendations resolved, pending further action, as of July 2026. Implementing these recommendations may improve challenges related to updating award terms and conditions and addressing staffing needs, personnel training needs, and access to IT systems and complete and accessible data issues identified in this report. The Office of the Under Secretary for Management provided an informal response to a draft of this report, noting that implementation of the May 2025 recommendations is in progress. In addition, the Bureau of Budget and Planning, the Bureau of the Comptroller and Global Financial Services, the Bureau of Global Acquisition, and the Office of Foreign Assistance Oversight provided technical comments on a draft of this report, which OIG incorporated, as appropriate. Evaluation of Department of State Administration of Foreign Assistance Programs Transferred from the U.S. Agency for International Development.

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Compute conundrum The past 12 months have not been kind to Microsoft. | Business Insider

BI’s Ashley Stewart, our resident Microsoft expert, broke down how the tech giant is trying to mount a comeback on multiple fronts.

ASSOCIATED PRESS; Tyler Le/BI

THE BIG STORY

Compute conundrum

The past 12 months have not been kind to Microsoft.

Once the most valuable company in the world, the Big Tech titan’s share price has been sliding. Microsoft’s stock dropped 19% in June, its worst month since the dot-com crash. Some of its top brands, like Microsoft 365, Copilot, and Xbox, are facing serious headwinds and questions about their future.

BI’s Ashley Stewart, our resident Microsoft expert, broke down how the tech giant is trying to mount a comeback on multiple fronts.

It wasn’t always this way. A few years ago, Microsoft was the top dog, getting praised for its foresight on the AI revolution. An early investor in OpenAI, Microsoft also quickly implemented AI into its search engine, Bing.

AI’s volatility is bound to swing companies’ fortunes quickly, but it’s hit Microsoft particularly hard.

Its 12-month stock performance (down roughly 25%) is the worst of the Magnificent Seven by a decent margin. (Meta is the next closest, down almost 17%.)

Microsoft will get another test on Wednesday when it reports earnings after the bell.

Michael Owens/Getty Images

At the heart of Microsoft’s challenge is a classic business dilemma: Does it cash in on demand today or focus more on its long-term goals?

Compute is the name of the AI game. Microsoft has the benefit of a massive cloud business in Azure that can help customers meet those needs.

But Microsoft’s cloud business is a gift and a curse. There is only so much compute to go around, and Microsoft has its own AI plans it needs that infrastructure for.

That means a decision: Allocate those resources toward its clients or itself?

The former leads to the more immediate boost to the top line, but comes with a risk. Less compute for Microsoft means fewer resources to develop and run its products, which could set it further back in the AI race.

Keeping more compute for itself is a bet that Microsoft’s products will ultimately take off, which is good for the long run.
But disappointing growth for Azure could tank its stock immediately.

This isn’t happening in a vacuum. Google Cloud continues to put up massive numbers. (Although it’s also feeling the pinch of AI spend as its free cash flow went negative for the first time in decades.)

And while they’re not as complete an offering as Azure, Meta and SpaceX are also getting in the compute-for-hire game.

So as Microsoft continues to debate how it wants to split up its compute, its customers have alternatives. And they might not stick around to find out what Microsoft decides.

Read the full story