At the end of last week, something of a fightback began against the dismantling of USAID, with judges ordering the Trump administration into an about-turn. But will it have an impact?
And if it doesn’t, where will the ax fall? We looked at the worst-affected sectors and countries.
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The first cut is the deepest?
The United States has, for now, effectively stopped all aid spending. While in theory there are waivers for lifesaving food and drugs, those waivers are all but worthless in practice because there are neither the staff to administer them nor the financial systems to pay for them.
Where are the cuts falling hardest? My colleagues Miguel Antonio Tamonan and Alecsondra Kieren Si have once again been hard at work, charting the countries that are worst hit — including Ukraine, Ethiopia, the Democratic Republic of Congo, Jordan, and Afghanistan — and the sectors that will be worst affected, including humanitarian aid and global health.
Read: Which countries would be worst hit by the US aid freeze? (Pro)
Read more: Which sectors are most vulnerable to US aid cuts? (Pro)
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Funding activity
We publish tenders, grants, and other funding announcements on our Funding Platform. Here are some of the ones that have been viewed the most in the past 10 days.
The Saudi Fund for Development has signed a $20 million loan agreement for the expansion of power generation, transmission, and distribution systems in Suriname.
The World Bank has approved a $110 million grant to boost the sustainable economic development of Kiritimati Island in Kiribati.
The European Bank for Reconstruction and Development has announced an €80 million ($83.4 million) loan to finance renewable energy capex and energy-efficient capacity expansion in Turkey.
German funder GIZ is seeking consultancy services to ensure the successful implementation of proposed solid waste management projects in Indonesia.
The United Nations is inviting proposals to increase public awareness and community stakeholder engagement on human rights in Malawi.
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Tell it to the judge
It’s been three weeks since the Republican administration set to work dismantling USAID. Now, after what seems an eternity, but really isn’t, a fightback of sorts is beginning in the courts. Judges have already said that mass redundancies across the agency cannot go ahead. And on Thursday, a judge ordered a temporary reversal of the stop-work order.
In theory, USAID should now be going about its normal business once again.
“Defendants have not offered any explanation for why a blanket suspension of all congressionally appropriated foreign aid, which set off a shockwave and upended reliance interests for thousands of agreements with businesses, nonprofits, and organizations around the country, was a rational precursor to reviewing programs,” the judge wrote.
The judge, it has to be said, did not rule against the review process that is happening in the background. Many USAID contracts and grants can be terminated in relatively short order — and more than 800 already have been.
In the meantime, is there anyone left to turn the payment systems back on? Or to use those systems to make payments, once they’re operational again? With the agency’s offices shut, and all its senior leaders already placed on garden leave, it’s far from clear what might happen now.
Read: Judge orders Trump administration to unfreeze existing aid programs
Plus: Judge extends reprieve for USAID employees in union lawsuit
See also: US foreign aid review officially begins — after many awards cut
Don’t miss: ‘Immediate relief’ for USAID programs not expected despite court order
Tomorrow, Feb. 18, Devex President and Editor-in-Chief Raj Kumar will speak with Robert Nichols, a lawyer involved in the legal fightback, to understand more about what’s going on. Devex Pro members can register now to join the event.
The job losses continue
Last week, we brought you the news that job losses due to the aid freeze could run into the tens of thousands, and perhaps even exceed 100,000. Increasingly, this week, we’re understanding where the cuts will come.
Over the past week, a number of announcements have come in. There have been reports of furloughs at Chemonics, DAI, Catholic Relief Services, and FHI 360 — USAID’s four largest partners outside of the multilateral system.
There have also been layoffs at Mercy Corps, the Norwegian Refugee Council, Norwegian People’s Aid, and the Danish Refugee Council.
The International Organization for Migration has made 3,000 layoffs.
Thousands of African health workers have lost jobs due to the aid freeze.
And global health nonprofit JSI has laid off half its 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.
The real-world impact
The impact of the cuts has continued to be felt worldwide, particularly in the sectors we identified as worst hit — humanitarian aid and global health. Below, I’ve gathered links to several stories that bring home the human impact of the cuts.
USAID freeze deepens Rohingya crisis, exacerbating “subhuman conditions.”
How Trump’s aid freeze is threatening tuberculosis programs.
“Malaria thrives on chaos” — and the U.S. aid freeze is creating it.
How Trump’s aid freeze is gutting a lifeline for women and girls.
How USAID’s dismantling could impact noncommunicable diseases.
Chaos, staff cuts have “degraded” USAID's ability to vet terrorist ties.
+ 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.
About the author
David Ainsworth@daveainsworth4
David Ainsworth is business editor at Devex, where he writes about finance and funding issues for development institutions. He was previously a senior writer and editor for magazines specializing in nonprofits in the U.K. and worked as a policy and communications specialist in the nonprofit sector for a number of years. His team specializes in understanding reports and data and what it teaches us about how development functions.
