The National Endowment for Democracy Once Charmed the GOP; Musk Is Altering Its Perception.
A funding freeze is forcing the National Endowment for Democracy and the organizations it backs closer to a shutdown.
TroibNews 
Elon Musk has recently targeted the National Endowment for Democracy (NED), a nonprofit that has been a longstanding favorite of the GOP and aims to strengthen democracy abroad. However, notable Republicans with connections to the organization, including a board member, are noticeably silent in the wake of Musk's criticisms.
Through various posts on X, Musk has condemned NED, a 41-year-old organization established to counter communism and provide grants to democracy and civil society groups internationally, labeling it as “rife with corruption” and accusing it of engaging in unspecified “crimes.” In early February, he stated that the "evil organization needs to be dissolved."
As a result of Musk's public criticism, NED has faced challenges in accessing its funding from the Treasury Department, causing organizations reliant on its support to start laying off staff. On Wednesday, NED notified its grantees that they would immediately halt payments due to their inability to access congressional funds. “Once you run out of money, consider your agreement with our organization suspended,” NED communicated in a statement obtained by PMG.
NED stands out among the many groups Musk has recently attacked, primarily due to its historical support from the Republican establishment. Founded in 1983 during President Ronald Reagan's administration as part of a strategy to combat communism, it enjoys bipartisan backing, although it has been particularly favored by Republicans. Senator Todd Young is among the board members, alongside former Representative Peter Roskam, current chair; and Stephen Biegun, former deputy secretary of State under Trump. Notably, Rep. Elise Stefanik, Trump’s former nominee for U.N. ambassador, is a past board member.
Both Young and Biegun opted not to comment, while Stefanik did not respond to requests for input. Roskam, while refraining from commenting on Musk's allegations, described NED as a “disciplined, cost-effective foundation” whose work is “critical to American interests in a dangerous world.”
Daniel Fried, another board member who served in both the Clinton and George W. Bush administrations, stated that NED is being unfairly characterized. He remarked, “The notion that NED is a bastion of woke would come as a great surprise to the Reaganites who backed it.” Fried added that the involvement of “Trump veterans” like Stefanik and former national security adviser Robert O’Brien in the board should illustrate that the group's funding is neither “a luxury or a waste.”
The International Republican Institute, a key grantee of NED, has been involved in election monitoring and anti-corruption efforts for over 40 years and boasts a board with several current or former GOP lawmakers. Musk directly challenged Young in his online campaign against NED, accusing him of being a “deep state puppet” for his role as a board member before retracting the statement hours later. Musk later suggested that Young would be a great ally in “restoring power to the people from the vast, unelected bureaucracy.”
In a tweet, Musk declared himself a “fan” of Stefanik but emphasized the need for “anyone with integrity” to resign from NED. He has not responded to inquiries for comment.
Democrats have expressed frustration over the reluctance of Republican supporters to defend the organization. “They should push back before President Trump’s allies undermine one of our most powerful tools for supporting freedom around the world,” remarked board member Rep. Joaquin Castro.
The organization's annual budget, approximately $300 million, primarily supports programs in regions like Russia, China, Ukraine, North Korea, and Cuba. Its efforts in China encompass aiding human rights monitoring activists and providing support for communities facing repression, such as the Tibetan and Uyghur populations. NED has also funded educational initiatives aimed at combating malign Chinese influence in Africa and Latin America.
China has long criticized NED, depicting it as a covert extension of U.S. intelligence aimed at destabilizing the Chinese government by supporting pro-democracy groups. Chinese Embassy spokesperson Liu Pengyu refrained from commenting specifically on Musk’s social media remarks but branded the group a threat to “world peace and stability.”
NED has dismissed Musk's accusations as unfounded. “I'm not sure how much he actually knows about [NED],” commented the group's President Damon Wilson. Nonetheless, he underscored that the organization is open to scrutiny regarding U.S. taxpayer money use, arguing, “We're not imposing democracy on people who don't want it. We're giving lift to people who are fighting the battle.”
Despite Musk not contacting NED, Wilson indicated that the organization is working on making its operations more “cost-effective.” However, staff furloughs are already in effect due to financial constraints. According to an anonymous source, as of Friday, NED was unable to access its operational funding held at the Treasury Department.
While the precise reason behind the funding halt is unclear, it may be linked to the fact that NED receives a small portion—around 5%—of its budget from the State Foreign Operations Democracy Fund, which is currently under a foreign aid funding freeze ordered by former President Trump. The remaining 95% of NED's financial resources are from other sources, which are not impacted by the recent funding stoppage.
“We currently do not have access to these funds,” stated a spokesperson for NED who spoke anonymously due to restrictions regarding the funding situation.
Neither the White House nor the Treasury Department provided comments on the matter.
Three of the four key organizations that receive most of their funding through NED have begun laying off or furloughing employees due to the uncertainty surrounding NED's financial situation. All four organizations also obtain part of their funding from USAID and the State Department.
For instance, the Center for International Private Enterprise, which collaborates with businesses abroad to combat corruption and promote opportunities for women and minorities, initiated layoffs and furloughs last week, according to a source granted anonymity.
The International Republican Institute, where Marco Rubio was previously a board member before his recent appointment as Secretary of State, has furloughed two-thirds of its staff and shuttered more than 20 overseas offices.
Meanwhile, the National Democratic Institute—also funded by NED and affiliated with the Democratic Party—announced similar workforce and operational reductions.
Not all within the Republican Party view NED positively. Senator Mike Lee, a member of the Senate's DOGE Caucus, expressed a willingness to see it discontinued, labeling it as “yet another politicized NGO meddling in the affairs of our friends and allies regardless of what’s best for the American people.”
However, cutting NED’s funding poses political risks, as it raises concerns regarding the Trump administration's declared tough stance on China. NED supports initiatives focused on labor rights education and monitoring in Chinese factories as well as efforts aimed at countering Chinese government propaganda.
The cessation of such programs could prove detrimental, as articulated by Tom Kellogg, executive director of Georgetown University’s Center for Asian Law, who warned that it would be “a gift to dictators and authoritarians around the world.”
Eric Bazail-Eimil and Gabriel Gavin contributed to this report.
Lucas Dupont for TROIB News
Through various posts on X, Musk has condemned NED, a 41-year-old organization established to counter communism and provide grants to democracy and civil society groups internationally, labeling it as “rife with corruption” and accusing it of engaging in unspecified “crimes.” In early February, he stated that the "evil organization needs to be dissolved."
As a result of Musk's public criticism, NED has faced challenges in accessing its funding from the Treasury Department, causing organizations reliant on its support to start laying off staff. On Wednesday, NED notified its grantees that they would immediately halt payments due to their inability to access congressional funds. “Once you run out of money, consider your agreement with our organization suspended,” NED communicated in a statement obtained by PMG.
NED stands out among the many groups Musk has recently attacked, primarily due to its historical support from the Republican establishment. Founded in 1983 during President Ronald Reagan's administration as part of a strategy to combat communism, it enjoys bipartisan backing, although it has been particularly favored by Republicans. Senator Todd Young is among the board members, alongside former Representative Peter Roskam, current chair; and Stephen Biegun, former deputy secretary of State under Trump. Notably, Rep. Elise Stefanik, Trump’s former nominee for U.N. ambassador, is a past board member.
Both Young and Biegun opted not to comment, while Stefanik did not respond to requests for input. Roskam, while refraining from commenting on Musk's allegations, described NED as a “disciplined, cost-effective foundation” whose work is “critical to American interests in a dangerous world.”
Daniel Fried, another board member who served in both the Clinton and George W. Bush administrations, stated that NED is being unfairly characterized. He remarked, “The notion that NED is a bastion of woke would come as a great surprise to the Reaganites who backed it.” Fried added that the involvement of “Trump veterans” like Stefanik and former national security adviser Robert O’Brien in the board should illustrate that the group's funding is neither “a luxury or a waste.”
The International Republican Institute, a key grantee of NED, has been involved in election monitoring and anti-corruption efforts for over 40 years and boasts a board with several current or former GOP lawmakers. Musk directly challenged Young in his online campaign against NED, accusing him of being a “deep state puppet” for his role as a board member before retracting the statement hours later. Musk later suggested that Young would be a great ally in “restoring power to the people from the vast, unelected bureaucracy.”
In a tweet, Musk declared himself a “fan” of Stefanik but emphasized the need for “anyone with integrity” to resign from NED. He has not responded to inquiries for comment.
Democrats have expressed frustration over the reluctance of Republican supporters to defend the organization. “They should push back before President Trump’s allies undermine one of our most powerful tools for supporting freedom around the world,” remarked board member Rep. Joaquin Castro.
The organization's annual budget, approximately $300 million, primarily supports programs in regions like Russia, China, Ukraine, North Korea, and Cuba. Its efforts in China encompass aiding human rights monitoring activists and providing support for communities facing repression, such as the Tibetan and Uyghur populations. NED has also funded educational initiatives aimed at combating malign Chinese influence in Africa and Latin America.
China has long criticized NED, depicting it as a covert extension of U.S. intelligence aimed at destabilizing the Chinese government by supporting pro-democracy groups. Chinese Embassy spokesperson Liu Pengyu refrained from commenting specifically on Musk’s social media remarks but branded the group a threat to “world peace and stability.”
NED has dismissed Musk's accusations as unfounded. “I'm not sure how much he actually knows about [NED],” commented the group's President Damon Wilson. Nonetheless, he underscored that the organization is open to scrutiny regarding U.S. taxpayer money use, arguing, “We're not imposing democracy on people who don't want it. We're giving lift to people who are fighting the battle.”
Despite Musk not contacting NED, Wilson indicated that the organization is working on making its operations more “cost-effective.” However, staff furloughs are already in effect due to financial constraints. According to an anonymous source, as of Friday, NED was unable to access its operational funding held at the Treasury Department.
While the precise reason behind the funding halt is unclear, it may be linked to the fact that NED receives a small portion—around 5%—of its budget from the State Foreign Operations Democracy Fund, which is currently under a foreign aid funding freeze ordered by former President Trump. The remaining 95% of NED's financial resources are from other sources, which are not impacted by the recent funding stoppage.
“We currently do not have access to these funds,” stated a spokesperson for NED who spoke anonymously due to restrictions regarding the funding situation.
Neither the White House nor the Treasury Department provided comments on the matter.
Three of the four key organizations that receive most of their funding through NED have begun laying off or furloughing employees due to the uncertainty surrounding NED's financial situation. All four organizations also obtain part of their funding from USAID and the State Department.
For instance, the Center for International Private Enterprise, which collaborates with businesses abroad to combat corruption and promote opportunities for women and minorities, initiated layoffs and furloughs last week, according to a source granted anonymity.
The International Republican Institute, where Marco Rubio was previously a board member before his recent appointment as Secretary of State, has furloughed two-thirds of its staff and shuttered more than 20 overseas offices.
Meanwhile, the National Democratic Institute—also funded by NED and affiliated with the Democratic Party—announced similar workforce and operational reductions.
Not all within the Republican Party view NED positively. Senator Mike Lee, a member of the Senate's DOGE Caucus, expressed a willingness to see it discontinued, labeling it as “yet another politicized NGO meddling in the affairs of our friends and allies regardless of what’s best for the American people.”
However, cutting NED’s funding poses political risks, as it raises concerns regarding the Trump administration's declared tough stance on China. NED supports initiatives focused on labor rights education and monitoring in Chinese factories as well as efforts aimed at countering Chinese government propaganda.
The cessation of such programs could prove detrimental, as articulated by Tom Kellogg, executive director of Georgetown University’s Center for Asian Law, who warned that it would be “a gift to dictators and authoritarians around the world.”
Eric Bazail-Eimil and Gabriel Gavin contributed to this report.
Lucas Dupont for TROIB News
