It’s difficult to keep up with the daily developments in our sector in this time of fundamental change, and some people might be tired of keeping up with the twists and turns. But each one marks an important new chapter in a radically rewritten playbook for U.S. foreign aid.
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You’re fired
For weeks, there’s been crickets from the administration in terms of details on the foreign aid freeze. Waivers are moving slower than molasses, and even if approved, they don’t amount to much because the payment system is frozen.
Now, however, there’s been some movement — though not in the direction aid advocates were aiming for.
The Trump administration has begun to formally cancel hundreds of USAID contracts and grants, according to several sources and internal documents.
The initial number of proposed terminations surpassed 800, several sources say — with the targeted projects encompassing everything from election monitoring to rural internet access. And more are still rolling in, my colleague Elissa Miolene writes.
Many programs are being terminated with immediate effect, despite the fact that at least one of these organizations was supposed to be warned of a program termination 30 days in advance.
And, not surprisingly, there are legal repercussions to this latest Trumpian twist.
The flurry of termination notices has put contracting officers in a bind because they are warranted to represent the U.S. government, and as such, can be sued for breaching federal agreements.
It’s “a lawyer’s field day,” says a former contracting officer.
Theoretically, the termination process could also help organizations make up for lost cash, but it’ll take a while.
“I doubt these folks will ever really pay out these costs,” says the former contracting officer. “And if they do, the vast landscape of [US]AID’s implementing partners will be out of business, and it will be too late.”
Yesterday, the contractors and NGOs currently suing the Trump administration filed a document with the court alleging that the administration was “accelerating their terminations of contracts and suspensions of grants of USAID and State Department partners — exacerbating the irreparable harm” they are suffering.
Later that evening, in response to the judge’s request, the government filed a list of 231 programs or projects that had been terminated on Feb. 11 and Feb. 12.
Read: The dismantling continues — hundreds of USAID awards terminated
ICYMI: Major new lawsuit filed by USAID contractors, NGOs challenges aid freeze
Bigger isn’t always better
Even if a program hasn’t been terminated, many organizations won’t have enough cash on hand to wait out the administration’s 90-day review. And we’re not just talking about small, grassroots NGOs — the bigger players are in danger as well.
FHI 360, DAI, Chemonics International, HIAS, and the International Republican Institute are just some of the large USAID partners furloughing employees left and right.
USAID Stop-Work, a coalition of former, current, and affiliated USAID staff, has counted more than 11,300 American jobs lost across 43 states — and nearly 52,000 across the world.
Organizations have been forced to shift money around to cover costs or lay off staff to save on program expenses. And for many of USAID’s largest partners, that means they’re out millions of dollars for work they’ve already done, Elissa writes.
“It’s in the hundreds of millions of dollars owed for services already provided, and of course, some multiples of that when it comes to what is being asked to be floated during the 90-day review,” says Tom Hart of InterAction. “That’s why at least in the INGO sector, we’re seeing mass layoffs, country programs stopped, and some organizations looking at shutting their doors.”
“Most leaders are in firefighting mode,” says Kim Kucinskas, a director at the nonprofit group Humentum. But at the same time, she says, organizations have had to continue to ensure they’re keeping on top of other programs not funded by the U.S. government. “It’s this balance between crisis management and needing to keep the trains running on time.”
She adds: “It’s physically, emotionally, mentally exhausting.”
Read: USAID’s largest partners report furloughs for thousands of staff
+ Having trouble keeping up with all the staffing and development work upheavals caused by the funding freeze? We’ve created an essential guide to track the impact for you. Check it out here.
Dueling bills
Democrats in the U.S. Congress are doing what they can to stanch the bleeding at USAID, introducing new legislation that seeks to protect the agency amid the Trump administration’s efforts to dismantle and defund it, my colleague Adva Saldinger writes.
The Protect U.S. National Security Act would require that any reform or reorganization of USAID be done in accordance with existing laws, and in a manner that maintains U.S. soft power and prevents adversaries and competitors from filling the void. It reiterates that only an act of Congress can eliminate USAID.
“Eliminating USAID will be a death sentence for millions of people,” says Rep. Sara Jacobs, a Democrat from California, who authored the bill. “People will starve, babies will die, and poverty will skyrocket. Not to mention, Elon Musk’s elimination of USAID is completely illegal.”
But with Democrats constituting the minority in both houses of Congress, the bill’s odds aren’t that great.
Just last week, a separate bill was introduced to do the opposite: Rep. Greg Steube, a Republican from Florida, introduced a bill to abolish USAID and halt all federal funding to the agency. It would also rescind funds that had not yet been obligated and transfer USAID’s “assets and essential responsibilities” to the U.S. State Department.
Read: Democrats introduce new legislation to protect USAID
Related: Democrats say eliminating USAID is ‘opaque and Orwellian’
Can USAID recover?
That was the question asked by Sen. Chris Coons, who spoke during a hearing in the U.S. Capitol yesterday. Twelve Democratic lawmakers gathered to discuss the shattering of what was recently the largest bilateral donor in the world — and four foreign aid and national security experts were there to provide answers.
“Trust takes a long time to gain, but a short time to lose,” said Cindy Dyer, the former U.S. ambassador-at-large to monitor and combat trafficking in persons.
The others — former top USAID officials Sarah Charles and Jeremy Konyndyk, along with Bruce Swartz, a former leader at the U.S. Department of Justice — agreed. They and the lawmakers spoke about how China, Russia, and others were already filling the vacuum that USAID’s dismantling had created. They also highlighted the national security risks to Americans, from illegal migration to the spread of HIV/AIDS.
“The U.S. is basically MIA on [Uganda’s Ebola] outbreak right now,” said Konyndyk, who is now the president of Refugees International. “Up until three weeks ago, we would have routinely had a robust USAID [Centers for Disease Control and Prevention] team out there, partnering with WHO and the Ugandan government. Instead, we’ve basically abandoned that role.”
The list went on. Lawmakers talked about how China funded a $4.4 million grant in Cambodia within days of the foreign aid freeze beginning. They highlighted how Russia was praising Elon Musk, the billionaire charged with downsizing the U.S. government, for slicing away foreign aid. But the room was full of Democrats, who hold limited power to actually do anything right now. And Sen. Jeanne Shaheen — the top Democrat on the Senate Foreign Relations Committee — said that though she’d invited her Republican colleagues, she didn’t know whether they would attend.
“I hope my Republican colleagues will overcome their fears of Elon Musk and join us in saying no,” said Shaheen, speaking at the start of the hearing.
But by the time it concluded at 5 p.m., not a single Republican lawmaker had dropped in.
Related opinion: 7 questions US legislators should ask about the demise of USAID
Background reading: The end of foreign aid as we know it
+ Explore our dedicated page for all the latest news, in-depth analysis, and exclusive insights on how the Trump administration’s policies are reshaping global development.
In other news
Seven African countries relying on USAID for over a fifth of their development assistance face severe impacts from Trump’s funding cuts. [Semafor]
A landmark report from Germany’s federal intelligence service warned that global warming poses an existential threat to the EU, highlighting security risks over the next 15 years. [Politico]
UNICEF reports that 13 Palestinian children have been killed in the West Bank since the start of 2025. [UN News]
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About the author
Anna Gawel
Anna Gawel is the Managing Editor of Devex. She previously worked as the managing editor of The Washington Diplomat, the flagship publication of D.C.’s diplomatic community. She’s had hundreds of articles published on world affairs, U.S. foreign policy, politics, security, trade, travel and the arts on topics ranging from the impact of State Department budget cuts to Caribbean efforts to fight climate change. She was also a broadcast producer and digital editor at WTOP News and host of the Global 360 podcast. She holds a journalism degree from the University of Maryland in College Park.
