The Department of Government Efficiency (DOGE) has made significant changes to USAID, sending thousands of employees home and removing the agency’s name. As a r

The Department of Government Efficiency (DOGE) has made significant changes to USAID, sending thousands of employees home and removing the agency’s name. As a result, USAID contractors are facing about $700 million in unpaid invoices for work completed before the administration change. The situation is critical, particularly for smaller contractors who risk running out of cash. The government is legally required to pay invoices within 30 days under the Prompt Payment Act, but no payments have been made, nor has there been communication about the delays. The lack of response is partly due to workforce disruptions at USAID, including administrative leave, terminations, and hiring freezes. David Berteau, CEO of the Professional Services Council, warns that this nonpayment could increase the risk premium for doing business with the government, leading to higher costs. His organization has reached out to Secretary of State Marco Rubio, who is also acting USAID administrator, urging him to resolve the issue. Meanwhile, budget uncertainties, continuing resolutions, and potential legal battles over impoundment laws add further complications.