In early 2025, President Trump implemented a near-total freeze on foreign aid, affecting USAID’s ability to carry out its work. This freeze has disrupted many humanitarian programs worldwide, leaving millions without essential support.

USAID manages around $50 billion in U.S. civilian foreign aid, which is crucial in global development. In 2023, the U.S. spent $68 billion on international aid, with USAID accounting for approximately $40 billion. NGOs struggle to provide food, healthcare, and disaster relief without this funding.

You may not feel the impact directly, but this decision affects global stability, economies, and countless lives. Understanding these consequences is crucial for the future of humanitarian aid.

What is USAID, & what does it do?

USAID, established in 1961 by President John F. Kennedy, aims to mitigate global poverty, foster sustainable development, and promote United States foreign policy.

You might not have thought that USAID supports food, healthcare, education, and even disaster relief for millions across the globe. For the fiscal year of 2023, the USAID had earmarked over $40 billion for allocation.

The organization has over 10,000 employees worldwide and collaborates with governments, NGOs, and local communities to find and implement sustainable solutions. Its efforts help stabilize the region, improve people’s lives, and build international relations.

Supporting USAID means contributing to a better, safer world for all.

How Much Aid Does the U.S. Give to Foreign Countries?

The United States remains the world’s largest foreign aid donor, providing $68 billion in 2023. This aid covers vast initiatives in and out of 100 countries worldwide, including primary health care, emergency relief, and economic development.

Among the prominent beneficiaries are Ukraine, with America providing $16.6 billion, and Israel and Jordan. While recent budget cuts have been significant to the United States, foreign aid still matters in dealing with various global problems and fostering initiatives in areas afflicted by the crisis.

The magnitude of this funding’s impact is immense. It continues to save lives, foster development, and promote global stability.

Global Impact: NGOs Struggle Amid USAID Funding Reductions

USAID funding cuts are hurting NGOs worldwide. You see fewer resources, disrupted programs, and struggling communities needing support.

Humanitarian Crises

Decreased financing from the USAID compromises critical humanitarian operations, jeopardizing lives in regions affected by conflict and natural disasters.

In 2023, USAID allocated $15 billion to humanitarian spending, which helped more than 60 million people worldwide. However, funding shortfalls contribute to shortages in food, safe drinking water, sanitation, and housing, which in turn worsen crises in Yemen, South Sudan, and Syria.

NGOs that depend on USAID grants are unable to provide critical services, which increases the suffering of the affected populations, resulting in greater deaths and prolonged misery.

Public Health

A reduction in USAID funding greatly affects many global health projects such as HIV/AIDS treatment, vaccination programs, and maternal healthcare.

In 2023, USAID spent $16 billion on global healthcare initiatives. Stopping these funds will most likely result in the regression of progress made in eradicating diseases such as malaria and tuberculosis.

The suspension could lead to the re-emergence of easily avoidable diseases and rising deaths, especially in regions of sub-Saharan Africa and Southeast Asia.

NGOs delivering health care are struggling greatly, meaning that millions have less access to vital treatments and medicines.

Economic Development

USAID’s economic development programs support infrastructure projects, education, and job creation, promoting long-term economic growth in developing countries.

In 2023, USAID invested $12 billion in economic development programs. Cutting these funds hinders the construction of vital infrastructure like roads, schools, and healthcare facilities.

It also reduces opportunities for vocational training and microfinance, which are crucial for empowering communities to achieve self-sufficiency. The economic impact is profound, stalling progress and leaving many without the resources to improve their living conditions.

Political Stability

USAID’s efforts to build democratic institutions and support peacekeeping initiatives are crucial for global stability.

In 2023, USAID allocated $5 billion to political stability programs. Reduced funding weakens governance, civil society organizations, and the rule of law in fragile states.

This can lead to increased corruption, political unrest, and violence, undermining efforts to foster democratic governance.

The cuts diminish support for electoral processes and anti-corruption measures, raising the risk of conflict and instability in vulnerable regions.

Environmental Protection

Less money decreases the work done to protect endangered species, save trees, and fight climate change. This results in severe environmental damage, biodiversity loss, and increased risks of climate disasters.

Some conservation initiatives may reach a point of no return, which can further disrupt the ecosystem and result in long-lasting effects.

Gender Equality

Some government programs that seek to foster gender parity and empower women may be adversely affected by funding cuts.

Programs targeting the reduction in gender violence, improving accessibility to education among girls as well as women’s economic participation are prone to get cut back or even wholly terminated.

This places multitudes of women and girls at risk by limiting their level of independence and equality.

Food Security

Decreased USAID funding leads to reduced agricultural productivity, food shortages, and increased malnutrition in regions heavily reliant on aid for food assistance.

Farmers may struggle to access the resources and support needed to grow crops, leading to food scarcity and higher rates of hunger and malnutrition.

Water and Sanitation

Cuts to water and sanitation projects result in reduced access to clean water and compromised hygiene practices.

This increases the prevalence of waterborne diseases and negatively impacts public health, particularly in vulnerable communities with limited access to clean water and proper sanitation.

Conclusion

Cutting USAID funding has serious consequences for NGOs and the world. Without this support, many organizations struggle to provide food, healthcare, and education to those in need.

You may not see it firsthand, but millions of lives are at risk. Global stability, economic growth, and humanitarian efforts depend on continued funding.

At Innovation Consulting & Solutions (ICS), we are committed to helping NGOs improve efficiency and impact through advanced IT solutions, including AI.

By remaining aware and endorsing causes that ensure continuous support, you, too, can make an impact. Everyone can contribute toward a more stable and caring world.