• Funding Trends
Business insight: USAID

Analysis: NGO exposure to US aid cuts

By John Alliage Morales17 April 2013

A 100-dollar bill cut into pieces. Photo by: Tax Credits / CC BY

More than a month into the era of sequestration, no one is certain how budget austerity is going to affect the aid community.

Amid much fear and speculations, the U.S. Agency for International Development has so far only said it is considering cutting payments and delaying or terminating agreements.

As always, there’ll be winners and losers, because cuts won’t be spread evenly across programs, thus affecting U.S. implementing partners differently depending on their focus areas and geographical reach. (In his just-released 2014 budget request, for instance, President Barack Obama indicates he wants to cut funding for Iraq, Afghanistan and Pakistan, but boost funding for Partnership for Growth Countries, among others.)

But there are other clues on which aid groups may have the most to lose in Washington’s age of austerity.

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About the author

Alliage profile
John Alliage Morales

As a staff writer, John Alliage Morales covers the Americas, focusing on the world's top donor hub, Washington, and its aid community - from Capitol Hill to Dupont Circle, Foggy Bottom to the downtown headquarters of USAID, the World Bank and Millennium Challenge Corp. Prior to joining Devex, Alliage worked for a variety of news outlets including GMA, the Philippine TV network, where he conducted interviews, analyzed data and produced in-depth stories on development and other topics.


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