Devex Pro Insider: USAID heads to the Supreme Court, and UK aid minister resigns

Once again, U.S. politics continues to stretch credulity, with another astonishing week for international aid. Earlier this week, we saw almost 10,000 awards canceled at essentially no notice, just hours before a court-imposed deadline that would have forced USAID to turn the taps back on, as well as pay back the billions it owes for work already done. Aid groups told the U.S. Supreme Court on Friday that the Trump administration had defied a court order to resume foreign aid, forcing layoffs and life-threatening disruptions. They warned the government had created “an emergency of its own making.” In a battle of wills, instead of paying the nearly $2 billion it had been ordered to do midweek, the administration sought, and eventually received a reprieve. The legal maneuvering is far from over, but for many organizations, regardless of the ultimate verdict, the damage has been done. “We now face the starkest of stark choices about which services can be protected,” said International Rescue Committee President David Miliband. We’ve got plenty more going on. Two major events took place during the week, and my colleagues were on the ground. Senior Reporter Adva Saldinger was in Cape Town for the Finance in Common Summit, while our Climate Reporter Jesse Chase-Lubitz was at the COP16 biodiversity conference in Rome. Coming up: Don’t forget that at 3 p.m. ET on March 4, we’ll be giving Devex Pro members an exclusive congressional perspective on the dismantling of USAID in a conversation with U.S. Rep. Ami Bera of the House Committee on Foreign Affairs. Also in today’s edition: U.K. development minister Anneliese Dodds resigns over aid spending cuts, FCDO whistleblower Josie Stewart secures a win, and the MacArthur Foundation steps up to ease the funding freeze. Bits and pieces U.S. no-show. Jesse gave me the lowdown on the final day of extended biodiversity talks in Rome — and guess what? The U.S. is nowhere in sight. Despite past efforts — such as former U.S. climate envoy John Kerry rallying for the Kunming-Montreal Global Biodiversity Framework in 2022 — this year, the administration is not involved. “Even though the U.S. has not been a party, it was very much engaged in the process that led to the Kunming-Montreal framework,” said one delegate. But now? Silence. Some said the new administration's priorities were likely to be in the back of delegates' minds, while others said the U.S. is a nonsubject. “The focus here is on the commitments,” said Jill Hepp from Conservation International. “The U.S. hasn’t come up.” Aid era fading. At the Finance in Common Summit in Cape Town, Adva tells me that one issue loomed large: the decline of traditional aid, with USAID’s collapse just part of a broader global retreat. French and United Nations leaders took veiled shots at the Trump administration. French Development Agency CEO Rémy Rioux warned that abandoning aid is “against their own national interest.” He called it the end of the "old world of ODA," asking whether funding would shift toward defense or sustainable development. But some African leaders had a different takeaway — less reliance on foreign donors, more investment in local financial systems. “The official development assistance window is closing,” said Samaila Zubairu, president of the Africa Finance Corporation. Sloppy sloppy. Critics of the Trump administration’s aid freeze and subsequent mass terminations, such as lawyer Robert Nichols, have lambasted the process as “sloppiness” that will cost taxpayers billions. A judge ordered the government to release $2 billion in overdue payments, but the Supreme Court paused it. Meanwhile, the government canceled nearly 10,000 USAID and State Department contracts, gutting aid work. Nichols, who spoke to our President and Editor-in-Chief Raj Kumar at a Devex Pro Briefing, talked about the next possible steps in the legal showdown. He said the freeze was rushed, ignored process, and the government is now stalling under the guise of “reviewing” funds. NGOs and contractors could go under before the case winds its way through U.S. courts. He predicts lawsuits, delays, and at least $10 billion in waste. “They threw the baby out with the bathwater,” he said. World Bank packs up. The World Bank is shaking things up — moving regional teams out of Washington and into hub offices closer to the countries they serve, according to Reuters. The goal? Faster responses, simpler access, and senior managers on the ground. With two-thirds of staff soon based in-region, potential hubs include Dubai, Singapore, and Nairobi, with changes starting as early as May. World Bank President Ajay Banga is leading the charge, making this the bank’s biggest decentralization move yet. MacArthur steps up. The MacArthur Foundation is upping its giving, pledging $150 million more over two years to counter Trump’s freeze on federal aid and grants. “This is a major crisis for our sector and it’s a time when those of us who can do more should do more,” John Palfrey, president of the foundation, told the Associated Press. With nonprofits losing key funding, MacArthur will raise its payout from 5% to 6%, while Freedom Together Foundation is doubling its rate to 10%. We have a story on this issue that’s worth reading, too, from my colleague Jenny Lei Ravelo. So does Norway. Norway also stepped up, pledging $840 million in humanitarian aid over five years to ensure predictable, flexible funding for proven organizations in crisis zones. While some advocate for broader or more direct local support, these partnerships enable long-term planning and rapid response. A win for whistleblowers. A huge victory for Josie Stewart, who took the U.K. government to court after being dismissed from the Foreign, Commonwealth & Development Office for speaking out on the Kabul evacuation disaster. The court ruled in her favor, affirming that truth-telling should not be punished. Will she get her job back — or at least be compensated? More importantly, will this case embolden others to step forward? ✉️ Do you have insights into any of this week’s bits and pieces? Let me know by replying to this email. In memoriam Médecins Sans Frontières revealed that one of its aid workers, Jerry Muhindo Kavali, was killed in the Democratic Republic of Congo. Jerry died from a gunshot wound sustained during armed clashes in Masisi, North Kivu, on Feb. 20, despite efforts to transfer him for specialized care. “We reiterate our strongest condemnation of the lack of respect for humanitarian work,” MSF said in a statement. “Sadly, these incidents are becoming more commonplace during this conflict.” Moving on U.K. development minister Anneliese Dodds has resigned over the Labour Party’s decision to cut aid spending. U.K. Prime Minister Keir Starmer plans to slash aid from 0.5% to 0.3% of national income by 2027 to fund defense — breaking a pledge to raise it to 0.7%. Dodds said it was unfair for aid to take the full hit and warned it could harm the U.K.’s reputation. Jules Frost has been appointed as the new CEO of Hagar International. PharmAccess Nigeria just launched a powerhouse advisory board to supercharge health care innovation and expand access across the country. Joining the board are Wiebe Boer, Ebere Okereke, and Olufemi Sunmonu — all experts in health care policy, digital health, and investment. Tim Bromfield has joined Conservation International as the vice president for Africa. Lauren Wetzsteon Tufo has officially joined the Gates Foundation as a senior program officer for women and children’s health within the global policy and advocacy division. After a 15-year tenure at the Gates Foundation — and nearly 40 years in immunization — Violaine Mitchell will retire at the end of June. Did we miss one? Is there a change on the horizon? Let us know at devexpro@devex.com. Up next Debt crisis fix. The Pontifical Academy of Social Sciences, or PASS, and Columbia University’s Initiative for Policy Dialogue are launching a commission of experts, chaired by Nobel laureate Joseph E. Stiglitz, to tackle the growing sovereign debt crisis in the global south. Its mission? To push for reforms that free nations from crushing debt and allow investment in health, education, and climate adaptation. The commission will release a jubilee report proposing solutions to fix the system. AHAIC 2025. The Africa Health Agenda International Conference takes place March 2 to March 5 in Kigali. The focus is on "addressing socio-ecological dynamics of health." We are a media partner, and my colleague Sara Jerving will be on the ground. You can reach out to Sara at sara.jerving@devex.com. March 2-5.