WH Confirms Politico Received Government Funding, Set to Lose Support Under Trump’s Spending Crackdown

 

Edited by: Fern Sidman

In a bombshell revelation, Fox News reported on Wednesday that White House Press Secretary Karoline Leavitt confirmed that Politico has been receiving significant financial support from the U.S. government—funding that will soon be cut off as President Donald Trump’s Department of Government Efficiency (DOGE) enforces stringent spending reductions.

Leavitt’s confirmation comes amid growing scrutiny over the use of taxpayer dollars to subsidize media outlets, a practice that Trump’s administration is actively working to eliminate. According to the information provided in the Fox News report, Politico has received at least $8.2 million in government funds in recent years, with $44,000 of that coming from the U.S. Agency for International Development (USAID)—a funding stream now under direct threat due to cost-cutting measures championed by billionaire Elon Musk, who has been tasked with overseeing DOGE.

During a press briefing, Leavitt directly addressed concerns over media organizations receiving government funds, stating unequivocally that these subsidies will be discontinued immediately. Fox News reported that she made it clear that taxpayer dollars should not be used to prop up news organizations that are expected to maintain journalistic independence.

“Upon coming out here to the briefing room, I was made aware of the funding from USAID to media outlets, including Politico, who I know has a seat in this room, and I can confirm that the more than $8 million taxpayer dollars that have gone to, essentially, subsidizing subscriptions to Politico on the American taxpayer’s dime, will no longer be happening,” Leavitt stated, according to Fox News.

She further emphasized that DOGE is actively working to cancel these payments, describing the initiative as a government-wide effort to ensure fiscal responsibility. As part of this endeavor, Leavitt assured reporters that every line item in the federal budget is being meticulously reviewed to eliminate wasteful spending.

Elon Musk has been given a prominent role in Trump’s Department of Government Efficiency (DOGE), spearheading efforts to reduce unnecessary government expenditures. Musk’s crackdown on excess spending is not just limited to media funding—it also extends to USAID, a major conduit of foreign aid that has long been criticized for lack of financial oversight.

The move to cut media funding aligns with Trump’s broader agenda of reducing government influence over the press and ensuring that news organizations operate independently of taxpayer subsidies. This decision, however, has already caused considerable disruption within Politico, where employees are raising concerns about financial instability.

As Fox News reported, tensions within Politico have escalated after staffers experienced delayed bi-weekly paychecks, leading to widespread confusion and anxiety among employees.

Many Politico employees, who typically receive direct deposits every other Tuesday, were alarmed when their funds failed to arrive on time this week. Panic spread within the newsroom as affected staffers worried about making bill payments and avoiding overdraft fees.

Politico’s management did not address the situation until 9 a.m., when they attributed the issue to a “technical error” rather than directly acknowledging the possibility of financial strain linked to government budget cuts, as per the information contained in The Fox News report.  Despite reassurances from management, concerns persisted throughout the day as employees anxiously awaited their wages.

One Politico employee told Fox News Digital, “Politico screwed a lot of people.” The affected staff member noted that many questions remained unanswered, especially as suspicions grew that the late paychecks could be tied to the looming loss of government funding.

Politico’s leadership downplayed the payroll delay, insisting that it was a banking issue and that employees would be paid by the end of the day. However, concerns within the organization remained high, as the delayed payments were not reflected as “pending” in employee accounts until after 5 p.m. ET and did not fully clear until Wednesday morning, the Fox News report said.

A Politico spokesperson provided a brief statement assuring that the company had resolved the issue swiftly. “Employees were paid yesterday, there was a technical error that was remedied in a matter of hours,” the spokesperson said. However, Fox News noted that Politico has not answered follow-up questions regarding whether Musk’s efforts to slash government spending played any role in the payroll delay.

While management maintains that the issue was a technical mishap, the report at Fox News indicated that internal fears persist that the delays could be linked to Politico’s dependence on government funds—funds that are now being cut off by Trump’s administration. Some staffers worry that the company may struggle to sustain operations without these taxpayer-backed subsidies.

This revelation has sparked renewed debates about government involvement in the media and the potential for financial incentives to compromise journalistic independence. The Fox News report noted that Trump’s administration has taken a hardline stance against subsidizing media outlets, arguing that news organizations must operate independently of government support to maintain credibility.

Critics of Politico’s financial ties to the U.S. government argue that such funding raises serious ethical questions. Should a news organization that covers the federal government receive millions of taxpayer dollars? According to Fox News, the Trump administration’s answer is a firm no.

On the other hand, supporters of government-funded journalism contend that some level of public support is necessary to maintain a robust and diverse media landscape. However, the report at Fox News noted that this perspective has faced increasing scrutiny, particularly in light of Trump’s policies aimed at cutting government waste and ensuring financial transparency.

The timing of the payroll issue has raised concerns, particularly since Fox News previously confirmed that Politico has been a major recipient of government funds—receiving at least $8.2 million from various agencies. USAspending.gov data shows that while Politico received some funds from USAID, it was not the largest contributor. The Department of Health and Human Services (HHS) led the way with $1.37 million, followed closely by $1.35 million from the Department of the Interior.

Other government agencies have contributed substantial amounts to Politico. They include the Department of Energy who contributed $1.29 million, the Department of Agriculture who contributed $552,024 and the Department of Commerce who contributed $485,572.

Earlier on Wednesday, frustration among Politico staffers over the late payroll deposits took a new turn when Elon Musk publicly commented on the situation. As Fox News reported, Musk responded to a post on X (formerly Twitter) revealing that the Department of Health and Human Services alone had spent nearly $500,000 on Politico Pro subscriptions. Musk’s reaction was brief but pointed, writing: “This is odd.”

According to Fox News, Musk’s remark immediately shifted the mood within Politico’s newsroom. While employees had initially been angry about their delayed paychecks, attention quickly turned toward the potential implications of Musk’s scrutiny on government funding. The concerns escalated as speculation grew that the Biden administration’s spending on Politico Pro subscriptions had surged significantly—far more than in previous administrations, as confirmed by USAspending.gov data.

News of Politico’s reliance on government funds quickly ignited a firestorm of debate across social media, with Fox News reporting that users were divided. Some critics accused the government of unethically subsidizing media organizations that report on its policies, raising concerns about journalistic independence. Others, however, defended the practice, noting that Politico Pro offers a premium subscription service critical to government agencies.

Politico Pro’s base subscription costs between $12,000 and $15,000 for three users, making it a costly but widely used resource among government officials, according to the Fox News report. Supporters of the government’s spending on Politico argue that agencies rely on these specialized policy updates and reporting to navigate complex regulatory landscapes.

However, the Fox News report pointed out that while federal agencies have purchased Politico Pro subscriptions under previous administrations, data shows that government spending on the platform skyrocketed during the Biden administration.

The controversy surrounding Politico’s funding is part of a broader debate about the relationship between the government and the media. The report at Fox News pointed out that while some argue that agencies need access to policy intelligence services, others insist that taxpayer dollars should not be used to prop up privately owned news organizations—particularly ones that cover and critique the same government institutions that are funding them.

Meanwhile, the Fox News report highlighted that Politico has not yet responded to requests for comment regarding Musk’s statement or the potential implications of Trump’s spending cuts. Given the heightened scrutiny on how taxpayer dollars are allocated, Politico could face further public and political pressure to explain its financial relationship with the federal government.

As concerns mount over journalistic independence and taxpayer accountability, the report at Fox News suggested that more revelations about government-funded media subscriptions may emerge in the coming weeks. Whether Politico will maintain its financial stability without government subsidies—or whether other media organizations will also face similar scrutiny—remains to be seen.