Sen. Sheldon Whitehouse talks USAID, ‘Muskrats,’ and bipartisanship

As the March 14 government funding deadline fast approaches, the fate of the U.S. Agency for International Development and other key federal programs hangs in the balance. Sen. Sheldon Whitehouse, a Democrat from Rhode Island, spoke to Devex to explain how Democrats are thinking about these high-stakes conversations, the angst among Republicans, and the potential for bipartisan cooperation on a climate tariff. Whitehouse also weighed in on the prospect of blue states forming an “economic bloc” that could negotiate internationally. This interview has been lightly edited for clarity and length. As the government funding deadline approaches, what will Democrats go to bat for in these conversations? What is the importance of USAID in these negotiations and which topics could lead us to government shutdown? I think it's going to be a big point of discussion, and part of the conversation is going to involve an understanding of how bad the damage that the little Muskrats have done already. Some of these [USAID] programs are very tip of the spear. They are very engaged with national security and work hand in hand with the military in conflict zones, providing the kind of support that the military can't efficiently provide. In areas like that, once the delivery system breaks down, once people can't be paid and there aren't other jobs there, they have to exit the conflict zone. It can be hard to rebuild the services that USAID provides, even if the military is still there, even if other government agencies are still operating there. It's not unusual in this world that things are easier to break than they are to build back. I think if the Trump administration said, “We'll give you some USAID programs back. But we're going to continue the devastation of the Department of Education, of the EPA [Environmental Protection Agency], of the independent federal agencies, we're going to continue to have our little minions scuttling around where they don't belong in sensitive data systems with access to private information about American citizens that the tech bros behind Trump would very much like to get their hands on for business purposes,” then that's not much of a sell. I think [USAID] is important, but it's not sufficient to undo the ongoing damage. And also, it gets a little hard to believe the Trump folks. They could easily say that to get what they want and then just walk away from the deal, renowned liar and fraud, convicted fraudster. So like, you’ve got to build in some confidence in the truth behind any agreement as well. At COP29 in November, you mentioned that some of the blue states could form an alliance and potentially negotiate internationally. Is that happening? So after Trump 1.0, there was a climate coalition of states that was set up to show the rest of the world that we're still in. That was the catchphrase that is being revived. I'm not up to the minute on exactly what the status is of that being revived, but Rhode Island participates. I think that if you get California, it alone is the world's fifth-biggest economy. So if you got California, New York, which has a huge footprint in finance and financial regulation, Chicago, in Illinois, which has huge footprint in agriculture and commodities markets, Pennsylvania, Michigan, and many of the other smaller states that participate in [the National Highway Traffic Safety Administration’s Corporate Average Fuel Economy] standards out of California, you could put together an economic block that is so significant to the world economy that folks would have to meet those standards. So whether it was fuel efficiency standards, transparency standards about climate risk, or emissions standards that allow those states to participate in international carbon border tariffs without penalty, there are a lot of ways in which that can happen. It's too preliminary right now to know which ways the states will choose to move, but they can move in ways that are so significant that it basically zeros out the obstruction and corruption from the Trump administration. What is the current status of this? Is someone organizing the alliance and future actions? I think it's being organized through that same coalition. And it's only been a month. We've got a lot going on. But I expect that to the extent that the states involved in the “We Are Still In” effort can agree not just to act on climate, but to act together on climate, they can make a very significant difference and basically disable much of the fossil fuel mischief that the Trump administration is performing. Are there any aid or climate issues that have the potential for bipartisan support over the next two years? You mentioned, during the Munich Security Conference, that a carbon border tax has “bipartisan momentum.” What does that mean? For the carbon tariff, a lot depends on finishing the work for a bipartisan bill, which I think would be very helpful in demonstrating to the Trump administration that this would actually boost the American economy. This has a pathway. I think that carbon capture, with direct air capture in particular to extract excess carbon dioxide from the atmosphere, has a bipartisan pathway. We've already had a hearing on it in the Environment and Public Works Committee that was bipartisan. And I think there's a lot of support for the tax benefits of the [Inflation Reduction Act] that are landing big investments in red states that those governors and senators and congressmen are going to want to watch. If you cut the ribbon, you don’t then want to shutter the factory. There’s a lot that can move forward in bipartisan fashion in the climate space. I think in the USAID space, support for Ukraine remains very bipartisan, and this is a way to continue to help in that area, but also there are lots of other areas where USAID is doing really good, important national security work. As the Republicans go through those programs and get beyond the fake list that the Trump White House put out, most of which has already been debunked, they will start to look at real programs and real services that are provided around the Middle East that support the peace framework that they're trying to work towards. Or the programs that support Israel, support Ukraine, and the countries around Ukraine that are helping fight back Russians. There's a lot to like from the Republican point of view. Are you currently having constructive, positive conversations with Republicans about this? Those conversations are definitely going on. I think it's a question of figuring out what the next opportunity is to examine these and decide in bipartisan fashion. So that's the appropriations bill which is due at the end of March. Are you currently feeling a sense of urgency among Republican senators regarding all of these cuts? I think there's considerable anxiety that the damage that Musk and his little Muskrats are doing can cascade into very bad political outcomes for senators with the damage landing among their constituents. There’s a fear that he'll go frolicking away with his billions and billions of dollars in one of his jets to one of his palaces. And you know, life will go on in billionaire-land for him, leaving elected senators to pick up the consequences of his foray into government smashing. I'm not sure that they're looking forward to the cleanup. Remember Thing One and Thing Two from “The Cat in the Hat”? Yeah, somebody had to clean up after Thing One and Thing Two. And we don't have “The Cat in the Hat” machine. Outside of sort of seeing how things have cascaded, are the Democrats starting to push a new agenda when it comes to the midterms? I think we're pretty well gathered around the notion that what Trump brings is chaos and corruption, and that his promises about fixing the economy were false promises. It's actually worsening on his watch and will worsen faster if his tariff regime kicks in. And that the whole operation, all the pain that people are going to feel, was directed towards providing billionaires, who already pay scandalously low tax rates, even more tax giveaways. I think that's a combination. It's pretty powerful, and I think it enjoys the added benefit of being true.