Nowhere is this more evident than in Hungary, where the Sovereignty Protection Office’s latest report has unveiled a vast, convoluted financial network linking USAID to Hungarian NGOs and media outlets that serve foreign political interests.
The report exposes how USAID has set up an elaborate multi-step financing scheme designed to obscure the true origins and destinations of its funds. Rather than directly funding Hungarian political groups or media organizations, USAID channeled resources through private equity funds and international NGOs that acted as intermediaries. These entities, often co-financed by the European Commission, redistributed funds strategically, ensuring that opposition-linked actors could continue their activities while maintaining plausible deniability.
Dexis Consulting Group has played a crucial role in USAID’s funding network, acting as a financial and operational intermediary to channel U.S. government resources into Hungary. According to the Sovereignty Protection Office’s report, Dexis was one of the key facilitators that helped distribute USAID funds while concealing the true origins and objectives of the financing. Rather than providing direct development aid, Dexis managed USAID’s financial flows to opposition-linked NGOs and media groups. This allowed USAID to maintain plausible deniability while continuing to fund actors that worked against the Hungarian government. The report highlights that Dexis, much like similar USAID-backed consultancy firms, is part of a larger strategy to exert political influence under the guise of civil society support.
USAID’s Hungarian program was particularly aggressive after 2021, focusing on:
- Media control: Funding Hungarian news portals and outlets that actively oppose the government.
- Political influence: Directing money to activist organizations engaged in anti-government protests and lobbying Brussels to pressure Hungary.
- Election interference: Supporting initiatives designed to sway public opinion and influence election outcomes.
As one section of the report states:
"The USAID funding network was intentionally designed to hide its sources. Local organizations were instructed to disguise the origin of the money to avoid detection and legal repercussions".
The Sovereignty Protection Office found that USAID’s financial schemes were closely intertwined with European Union funding mechanisms, particularly the Citizens, Equality, Rights, and Values (CERV) program. Through CERV, the European Commission effectively took over many of the functions USAID had been carrying out in Hungary, ensuring continued support for opposition-aligned NGOs despite the Trump administration’s freeze on USAID’s operations.
"Since 2021, USAID funds have merged with EU financial resources, making it almost impossible to distinguish American influence from Brussels’ political agenda," the report concludes.
This revelation confirms Hungary’s long-held suspicion: that both Washington and Brussels are working together to undermine national sovereignty under the guise of “civil society support.”
Hungary has taken significant steps to protect its democracy from foreign interference. The Sovereignty Protection Act aims to counteract covert foreign funding by requiring transparency in NGO financing. However, the opposition and their international backers predictably claim that such measures are “anti-democratic.”
The Hungarian people have spoken. In a national consultation, 98% of respondents supported efforts to block foreign interference in the country’s internal affairs.
USAID’s role in Hungary is not about promoting democracy—it is about manipulating democracy to serve foreign interests. As the report warns, if Hungary does not take decisive action, it risks becoming yet another battleground for international political struggles.