Politico Loses Government Funding After $8 Million in Contracts Are Exposed

The White House has officially cut off all government funding to Politico after it was revealed that the news outlet had received more than $8 million in taxpayer money through subscription deals and other contracts. The decision was announced on Wednesday by White House Press Secretary Karoline Leavitt, who emphasized that such spending did not serve the interests of the American people.

Press Secretary Leavitt confirmed that the Department of Government Efficiency (DOGE)—run by billionaire entrepreneur Elon Musk—will be responsible for ending Politico’s taxpayer-funded payments. This move is part of a broader effort by the Trump administration to eliminate what they see as wasteful government spending.

Government’s Spending Review Uncovers Politico’s Contracts

The decision to pull funding came after X (formerly Twitter) user Adam Townsend exposed that Politico had received $8.1 million in government contracts, largely for high-priced website subscriptions. These findings, sourced from USASpending.gov, raised concerns about how public funds were being allocated and prompted immediate action from the Trump administration.

“I can confirm that more than $8 million in taxpayer funds, which were essentially used to subsidize subscriptions to Politico, will no longer be happening,” Leavitt stated during a press briefing.

She further added, “The DOGE team is working on canceling those payments now.”

What Were These Government Contracts Used For?

While exact details of the contracts have not been disclosed, public records indicate that federal agencies had been purchasing Politico subscriptions for their employees. These contracts, some of which were worth hundreds of thousands of dollars each, suggest that various government departments were using taxpayer funds to access Politico’s content.

Critics argue that there is no justification for taxpayer money funding news organizations, especially those that claim to operate independently. Many have called this a form of government-sponsored media, raising ethical concerns about potential bias and conflicts of interest.

Politico Remains Silent Amid Backlash

So far, Politico has not issued an official response to the government’s decision to revoke its funding. However, the outlet has already had a turbulent financial week.

According to a report by Semafor, Politico recently missed a payroll run, leading to concerns about its financial stability. While the company later resolved the issue, the missed payroll raised eyebrows and fueled speculation about potential financial struggles within the organization.

With the loss of millions in government support, Politico may now need to reassess its business model and find new revenue sources to maintain operations.

Elon Musk’s Push to Cut Government Spending

The move to defund Politico is just one part of a much larger effort led by Elon Musk to significantly reduce federal spending. As the head of the newly created Department of Government Efficiency (DOGE), Musk has been tasked with identifying and eliminating wasteful expenditures.

On Tuesday, Musk also announced plans to defund National Public Radio (NPR), arguing that taxpayer funds should not be used to support media outlets that claim to be independent. His aggressive approach to budget cuts has sparked heated debates among lawmakers, journalists, and the general public.

Criticism and Political Reactions

Unsurprisingly, Musk’s decisions have drawn harsh criticism from political figures and media personalities. Among the most vocal critics is Congresswoman Alexandria Ocasio-Cortez (AOC), who publicly slammed Musk, calling him “morally vacant” and “not smart” for making such drastic funding cuts to media outlets.

Other critics argue that Musk should not have control over federal spending, questioning whether a tech billionaire should be entrusted with such significant financial decisions. However, his supporters see these cuts as a necessary step in reducing government waste and inefficiency.

Meanwhile, President Donald Trump has assured the public that Musk cannot act unilaterally when it comes to government budget decisions. Trump emphasized that all major funding cuts must go through his administration before being finalized.

Media Bias Concerns and Future Implications

The revelation that Politico was receiving taxpayer money has reignited discussions about media bias and the role of government funding in journalism. Some believe that media outlets should be completely independent from government support, as it raises concerns about potential conflicts of interest and compromised reporting.

Others argue that cutting off funding to certain news outlets could be politically motivated, with critics questioning whether these actions are targeting specific media organizations that do not align with the administration’s views.

Regardless of political stance, the decision to revoke Politico’s government funding sets a significant precedent. If media organizations previously relying on government contracts lose funding, they may be forced to rely entirely on private revenue sources, potentially changing the landscape of journalism in the U.S.

What This Means Moving Forward

The decision to end Politico’s government contracts could have ripple effects across the media industry. If other news outlets are also receiving federal support, they may soon find themselves facing similar scrutiny and potential defunding.

With Musk at the helm of government efficiency reforms, additional budget cuts across multiple sectors are expected. His push to eliminate unnecessary federal expenses could extend beyond media funding to other government programs and initiatives that do not demonstrate clear value to taxpayers.

For now, Politico must adjust to a future without taxpayer support. Whether the company can sustain its operations through other revenue streams remains to be seen. However, one thing is certain—the era of taxpayer money funding news subscriptions is coming to an end.

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This information is sourced from Yahoo News