Devex Newswire: DOGE wants aid organizations to ‘defend the spend’

Roller-coaster ride doesn’t even begin to describe it. At long last, after an exhaustive tug of war with the Trump administration powers that be to get paid, some aid organizations began to see money flowing again. Then came “Defend the Spend.”

Also in today’s edition: The U.N. is making some hard decisions to trim its financial footprint during this new era of belt-tightening.

+ Don’t miss tomorrow’s event with Mulago Foundation CEO Kevin Starr, who will offer candid insights into the future of aid. Save your spot.

The DOGE yo-yo

After a federal judge ordered the Trump administration to thaw its foreign aid freeze — and lots of legal back and forth over that decision — government payments finally began to trickle in for some aid organizations. Then the Department of Government Efficiency said not so fast, demanding a justification for those payments.

Emails from a user called Defend the Spend began landing in inboxes when staff attempted to draw down project funds. Now, DOGE has stalled payments again, with the emails demanding a “detailed justification” before any work is reimbursed.

“It feels like we’re going through round two of this,” says a programmatic lead from one affected organization, who requested to speak anonymously for fear of retribution. “How much more can we endure?”

There were two types of emails, another employee at the organization explains: one asking what the award was for, how the funds were used, and why the money was necessary; and another that asked for itemized costs, including details on services, vendors, and subcontractors. Those are the type of details, the employee explained, that are typically ironed out during the original grant process.

“Our accounting system — which was built, over decades, to comply with U.S. government reporting financial requirements — cannot comply with this requirement,” says the organization’s financial lead. “They’re changing the rules of the game as we’re going, and then having to retroactively apply that to the past is a really challenging environment.”

“We’re a sophisticated organization. I can build reports. But I need time,” says the lead, who is now working with their IT team to build a new system. “So we’ve invested in more IT resources and more staff time. We’re just sort of spinning here.”

Read: DOGE's 'defend the spend' effort hits the aid sector

Have they checked the couch cushions?

The U.N. secretary-general’s warning came during a sober briefing yesterday in which he proposed the need for major staff cuts, including the elimination of 20% of civilian workers in key departments of the U.N. secretariat.

In addition to layoffs, Guterres outlined a series of measures aimed at bringing down U.N. spending, from relocating staff to less expensive countries to consolidating — or eliminating — a range of programs that the world body can no longer afford.

The savings push is, unsurprisingly, driven by the Trump administration’s cost-cutting campaign, which includes a proposal to slash U.S. contributions to the U.N. by nearly 90%.

Also not surprising: The reform initiative, dubbed UN80 because it is the 80th anniversary of the United Nations’ founding, received a warm reception from the U.S. — which, according to acting U.S. ambassador to the U.N. Dorothy Shea, “looks forward to specific proposals on how the U.N. will achieve greater efficiency and cost savings, eliminate duplication, and consolidate functions.”

Other member states, however, had a frostier response.

“The envisaged reform measures must … be targeted and proportionate,” said Pascale Baeriswyl, the U.N. ambassador from Switzerland. “We need to create a shared strategic vision because otherwise we risk that we engage in widespread short-term cuts without strategic vision.”

Read: UN chief outlines 'painful' survival plan for world body

+ Happening today at 10 a.m. ET (4 p.m. CET): Can the U.N. remain relevant amid renewed U.S. hostility? Join Richard Gowan of the International Crisis Group and Natalie Samarasinghe of the Open Society Foundations for a frank discussion on the U.N.’s future and the implications for global governance. Seats are limited and going quickly, so sign up now to be part of the conversation.

DAI hard

Last year, Development Alternatives Inc. — a Maryland-based international development firm —  was USAID’s second-largest contract recipient. Now, following U.S. President Donald Trump’s razing of U.S. foreign assistance programs, it has lost 88% of project revenue.

Since Trump’s inauguration, DAI has received termination notices for 85 of its 91 prime contracts, according to a recent legal filing in a court case USAID implementers have brought against Trump and members of his administration. The award terminations have “seriously damaged the company’s financial performance,” the filing reads.

The award terminations have ended funding for programs that provided “shelter for minors seeking protection from recruitment into criminal gangs in Central America,” safe drinking water in Lebanon, civil society in Myanmar, and zoonotic disease detection in Bangladesh, among others, the complaint states.

DAI, which has furloughed or terminated more than 3,000 employees, has also seen tens of millions of dollars of equity value wiped out from the retirement accounts of more than 500 employee-owners, my colleague Michael Igoe writes. In 2024, the company generated over $462 million in revenue.

Read: Major USAID for-profit development partner faces 88% loss due to cuts

Related reads:

• Who lost the most? The 20 USAID contractors hit hardest (Pro)

• If USAID contractors fold, they take some retirement plans down too (Pro)

How to get the givers

Philanthropists are being wooed to make up for the shortfalls in funding in the wake of aid cuts in the U.S. and Europe. But landing a large philanthropic grant — especially through competitive open calls — can be a tall order, Devex Pro Funding Editor Raquel Alcega writes.

At a recent Devex Pro event, Jenna Schornack of Lever for Change shed light on how her organization is working to change that. Since its launch in 2019, Lever for Change has helped channel $2.5 billion to organizations worldwide. Its goal is to mobilize $10 billion by 2030.

Check out Raquel’s recap for key takeaways and actionable advice that Jenna shared during the conversation.

Read: Winning large-scale philanthropic grants — inside Lever for Change’s model (Pro)

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Road to Belém 

Climate may have taken a backseat in the Trump administration — or, more precisely, been kicked to the curb — but that doesn’t mean other countries are taking their feet off the gas pedals.

That’s especially true for Brazil, which holds the presidency of the 30th United Nations Climate Change Conference, or COP30. In a letter published at the end of the recent Copenhagen Climate Ministerial — the second in a series of gatherings to galvanize consensus ahead of COP30 — Brazil urged countries to move from pledges to implementation.

Brazil outlined its concept of the global mutirão, a term that is being used ahead of COP30 to symbolize a joint effort across national and subnational governments, societies, Indigenous communities, and economic players.

“This is a bit of a new approach so it is too early to tell what the impact will be, but I do believe it’s a good signal that the COP30 presidency is seeking good advice and input from so many stakeholders,” says Ana Mulio Alvarez, a researcher at E3G.

Read: COP30 presidency calls for shift from climate pledges to implementation

In other news

U.K. development minister Jenny Chapman is set to defend the country’s aid reduction to members of Parliament and to assert that future aid will focus on sharing British expertise and supporting economic development in partner countries. [The Guardian]

Oxfam has issued an apology after a social media post questioning public consultation on a new solar tax bill in Vanuatu, which sparked concerns that the organization could be de-registered. [ABC]

Global banana supply could be at risk due to climate change, as countries in Latin America and the Caribbean may no longer be suitable to grow the fruit by 2080, according to a Christian Aid report. [EuroNews]

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