Since January 20, 2025, the United States has entered a new era with the inauguration of Donald Trump. The new administration has issued numerous executive orders, including one providing for the abolition of the U.S. Agency for International Development (USAID). The consequences of this decision are manifold for many countries. This article looks at the impact of USAID’s closure on international development projects.
USAID: a key player in international development
Created in 1961 by President John Fitzgerald Kennedy, the U.S. Agency for International Development had a clear objective: to promote economic and humanitarian development in developing countries and to support democratic values. Through this agency, the United States is the world’s leading contributor to international development. In 2023, USAID’s three priorities were to support local goals formulated by governments and local communities, address major challenges such as food and health security, and implement projects in line with U.S. foreign policy.
USAID is the principal U.S. agency working for democracy, the protection of human rights and, above all, the eradication of poverty worldwide. It also helps societies prevent conflict and provides humanitarian assistance in the event of natural disasters. USAID operates in over 100 countries worldwide. Among the main beneficiaries of American aid are the Democratic Republic of Congo (DRC), Jordan, Somalia and Ethiopia. The funds managed by USAID in 2023 are estimated at over $40 billion. It has played a key role in the fight against HIV/AIDS and the COVID-19 pandemic.
USAID closure: what consequences for individuals and organizations ?
Since the announcement of the closure of USAID by the new American government, many organizations and thousands of beneficiaries have been in a state of panic. The closure of this organization means the end of thousands of development programs. Its budget represents 42% of global aid. The consequences of USAID’s closure are already being felt. Agricultural recovery projects aimed at helping thousands of people displaced by humanitarian crises have been put on hold following the announcement of this decision. Operations to boost the local economy in Yemen’s conflict zones have also been halted.
In Africa, nearly $17.4 billion in aid has been earmarked for projects in various sectors in 2023. Essential projects in maternal and child health, the fight against HIV/AIDS and support for refugees are now under threat, putting millions of beneficiaries at risk. Many NGOs, more than 50% dependent on USAID funds, find themselves in a precarious situation. Payment delays and financial uncertainty will compromise their ability to provide essential services to vulnerable communities. Some may be forced to reduce their operations, or even cease trading.
Tom Hart, President of InterAction, an alliance of over 160 NGOs, is concerned about the fate of sick children and famine-stricken families. An effective closure of this American agency will have vital consequences for thousands of people around the world. Solidarités International is also unable to continue its operations to rebuild water and sanitation infrastructures in Syria because of the USAID closure.
Towards a reconfiguration of the international development landscape
Faced with this situation, governments and international institutions will have to find alternative solutions to compensate for this loss. Strengthening regional cooperation, diversifying funding sources and increasing the involvement of private players could be among the strategies to be considered.
