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    Devex Newswire: Intriguing proposal seeks major overhaul of US aid

    The blueprint suggests concentrating humanitarian efforts under a streamlined USAID, strengthening state-controlled programs that promote democracy and civil rights, and merging various agencies to enhance economic initiatives.

    By Helen Murphy // 21 March 2025

    Presented by Mastercard Foundation

    Sign up to Devex Newswire today.

    A new proposal is making its way around the U.S. halls of power, aiming to reshape U.S. foreign aid and closely align it with national policy goals. Some see it as just the ticket; others are skeptical and question its feasibility.

    Also in today’s edition: UNHCR braces for job losses and we examine the health finance crisis in Africa amid an emerging era of “polyepidemics.”

    Aid blueprint buzz

    This is a preview of Newswire
    Sign up to this newsletter for an inside look at the biggest stories in global development, in your inbox daily.

    There’s a fresh plan for reimagining foreign assistance making the rounds in Washington, D.C., right now. Taglined as safer, stronger, and more prosperous, this proposal seems to be aligned with the Trump administration’s current approach to aid. The blueprint, which Politico reported was drafted by aides of U.S. President Donald Trump, is stirring quite a discussion.

    Richard Crespin of the Center for Strategic and International Studies commends the document, noting, "The memo was very well thought out and well rationed. And it seems to me that whoever was the author has a pretty thorough understanding of both the legislative side of this as well as the practical side.” The strategy aims to align U.S. foreign policy goals more closely with international development, a tactic other major donor countries have adopted.

    Despite the strong foundation, the proposal has its critics, write my colleagues Adva Saldinger and Elissa Miolene. Questions are raised about the U.S. State Department’s ability to manage humanitarian aid effectively and whether the U.S. Congress would dismantle long-standing foreign aid laws. George Ingram from the Brookings Institution raises a significant concern: “When you get rid of 90% of USAID staffing, that sort of limits the amount of aid and the way you provide it.”

    The origin of the document remains a bit of a mystery, and not everyone is convinced of its authenticity or endorsement. One insider doubts its official approval, describing it as “wishful thinking” and “probably not a blessed document.”

    The blueprint suggests a new structure for aid: concentrating humanitarian efforts under a streamlined USAID, strengthening state-controlled programs that promote democracy and civil rights, and merging various agencies to enhance economic initiatives against global competitors like China's Belt and Road initiative. These plans, however, come with worries about effectiveness due to potential drastic cuts in staff.

    Congress will need to be heavily involved if these changes are to be implemented. The proposal calls for significant legislative updates, prompting a necessary reevaluation of the legislative body’s involvement in foreign aid.

    Amid these debates, the true future of U.S. assistance under this plan remains to be seen. Will these changes truly lead to a world that’s safer, stronger, and more prosperous? That remains a big question mark.

    Read: How is this ‘reimagined’ proposal for USAID hitting the sector?

    ICYMI: Memo lays out plan to replace USAID with new humanitarian agency

    + Listen: For the latest episode of our podcast series, Adva and Elissa are joined by Devex President and Editor-in-Chief Raj Kumar to discuss the different proposals on how to reform U.S. foreign assistance.

    Survival mode

    The UN Refugee Agency, or UNHCR, is bracing for major job cuts — up to 6,000 positions, according to an official.

    “Let me be frank,” Filippo Grandi, the U.N. high commissioner for refugees, wrote in an email to staff, which Devex has seen. “There is no doubt that the next few months will be very difficult.” With U.S. foreign aid frozen, the agency faces “financial uncertainty” and must take “decisive action” that will impact refugees, operations, and staff alike.

    This isn’t about “strategic reform” or “modernization,” Grandi stressed — it’s about survival. UNHCR is slashing staff amid a broader U.N. funding crisis, following thousands of layoffs at the International Organization for Migration.

    While some donors have sped up payments, few have offered extra cash. As a result, “we must immediately and substantively reduce our expenditures,” Grandi warned, adding that layoffs alone won’t be enough to close the gap.

    A task force is scrambling to find solutions, but the outlook is clear: “UNHCR will be present in fewer locations” with fewer staff. Despite the steep cuts, Grandi vowed, “the work will continue. Our mandate will endure.”

    Exclusive: UN Refugee Agency braces for thousands of job cuts

    An era of ‘polyepidemics’

    Millions of lives are on the line as Africa faces a health funding crisis. My colleague Sara Jerving tells me 2 million to 4 million more people could die annually on the continent due to rapidly vanishing donor aid, low domestic health spending, and a surge in public health emergencies. Decades of progress in maternal health, child survival, and disease control could be wiped out.

    That’s according to the head of the Africa Centres for Disease Control and Prevention, Dr. Jean Kaseya, who puts it bluntly: An African health minister recently said that some 80% of their HIV and malaria services relied on foreign aid. Then, “overnight, everything — gone. We have similar cases — even worse — in so many other African countries,” Kaseya says.

    Adding to the alarm, Kaseya says the threat of a pandemic originating in Africa keeps his agency “awake.” With a 41% jump in disease outbreaks from 2022 to 2024, the fear isn’t just about Africa — it’s about the world. “We don’t want to be accused of [putting] the planet at risk,” he says.

    Dr. Seth Berkley, former chief of Gavi, the Vaccine Alliance, echoes those concerns, warning that global cooperation is breaking down just as we are entering a new “era of polyepidemics.” In recent months, the world’s seen an outbreak of Ebola in Uganda, mpox continuing to spread, avian flu spilling into people, and outbreaks of Marburg in Tanzania and Rwanda. “We’re going to likely see increasing numbers of pandemics. It’s evolutionarily certain,” Berkley tells Sara.

    The world was working to build up the architecture to respond to these crises but now that progress is rapidly reversing. He says the pandemic treaty is now “all but dead” and while the U.S. CDC played a critical role in disease surveillance and response globally, now its experts aren’t communicating with the World Health Organization.

    “The fact that those two institutions aren’t able to work together has a profound effect,” he says.

    Read: Seth Berkley warns of an era of ‘polyepidemics’ as cooperation crumble

    + For more insider reporting on global health, sign up for Devex CheckUp, a free, weekly newsletter.

    Fight for survival

    Aid advocates have been warning about the real-world repercussions of U.S. aid cuts ever since Trump came into office. We’re starting to see them unfold in dramatic fashion.

    Shortly after the World Food Programme announced a reduction in food rations at Kenya's Kakuma refugee camp, hundreds of protesters gathered outside the United Nations compound there. What started as a peaceful demonstration devolved into violence, injuring four people.

    The downsizing in rations is the direct result of drastic cuts to WFP’s budget following the U.S. aid freeze. In 2024, the U.S. pledged almost $4 billion in long-term funding for WFP. This year it has committed $48 million so far, writes Anthony Langat for Devex.

    Joseph Nduwimana, a Burundian refugee living in the Kakuma camp, said the food ration cuts have severely affected families. “Many rely entirely on these rations for their daily meals, and the cuts have led to increased hunger and malnutrition. Without sufficient food, the overall well-being of the community is deteriorating,” he says. “The situation is critical.”

    Read: US aid cuts cause uproar over food shortages in Kenyan refugee camp

    ICYMI: Already strapped for cash, WFP faces post-USAID future

    + For more content like this, sign up to Devex Dish, a weekly newsletter on the transformation of the global food system.

    Wake-up call

    Africa needs to take charge of its own health financing — fast. For decades, donor cash has propped up essential programs, but with U.S. aid gutted and European donors pulling back, the continent faces a harsh reality. The carpet has been pulled out from beneath the feet of the continent’s population, says Dr. Samukeliso Dube of FP2030, during a recent conference in Kigali, Rwanda.

    The Trump administration’s cuts wiped out some 5,200 USAID programs, leaving gaping holes, writes Sara. For example, Ghana lost $156 million, and the U.S. President's Emergency Plan for AIDS Relief funds 17% of South Africa’s HIV programs — a lifeline now at risk.

    Some citizens are asking governments why they let other countries fund their health care for so long, Serah Makka of the ONE Campaign says. “They’ve said: Someone shouldn’t wake up one morning and say, ‘Ah, I’m done with this’ — and then over here we are scampering,” she says. “It stimulated a bit of a bruised pride, like: ‘How did we get here?’”

    Foreign aid has saved lives but created inefficiencies, often with programs focused on diseases instead of strong health systems. “Now, we’re forced to streamline,” says Ngozi Erondu of the Global Institute for Disease Elimination. Meanwhile, U.S. funding has always come with baggage — and now Trump’s administration has axed entire programs just for mentioning diversity, equity, and inclusion. “He who pays the piper determines the tune,” says Dr. Mary-Ann Etiebet of Vital Strategies.

    The answer? Stop waiting for donors. Governments must get creative — raise taxes on products like tobacco and alcohol, crack down on corruption, and tap into diaspora investment. Kenya, for instance, is estimated to lose $15.5 million a day to corruption — money that could fund health care. “When one is 60 years [old], you feed yourself. We are not young anymore,” says Boniface Mbuthia of Amref Health Africa.

    Read: ‘How did we get here?’ — African health experts on ending aid dependence

    See also: Global health expert blasts aid addiction and dysfunctional system (Pro)

    + Not yet a Devex Pro member? Start your 15-day free trial now to access the event as well as all our expert analyses, insider insights, funding data, and more. Check out all the exclusive content and events available to you.

    In other news

    United Nations chief António Guterres pleads with European Union leaders not to take back unspent contributions to help bridge budget gaps left by U.S. funding cuts. [Financial Times]

    Melting glaciers put at risk food and water supply for 2 billion people around the world, a UNESCO report warns. [The Guardian]

    Sign up to Newswire for an inside look at the biggest stories in global development.

    • Funding
    • Global Health
    • Institutional Development
    • Humanitarian Aid
    • United Nations High Commissioner for Refugees (UNHCR)
    • United States Agency for International Development (USAID)
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    About the author

    • Helen Murphy

      Helen Murphy

      Helen is an award-winning journalist and Senior Editor at Devex, where she edits coverage on global development in the Americas. Based in Colombia, she previously covered war, politics, financial markets, and general news for Reuters, where she headed the bureau, and for Bloomberg in Colombia and Argentina, where she witnessed the financial meltdown. She started her career in London as a reporter for Euromoney Publications before moving to Hong Kong to work for a daily newspaper.

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