Listen to "State Department faces $20B spending crunch as fiscal year end looms" on Spreaker.
Listen on Spotify, Apple Podcasts, Soundcloud, YouTube, or search “Devex” in your favorite podcast app.
With the U.S. Agency for International Development officially ceasing operations as the main U.S. foreign aid agency on July 1, the State Department now faces the daunting task of spending an estimated $20 billion before the fiscal year ends on Sept. 30 — without the 10,000 staff members who previously managed such distributions. The administration is legally required to spend money appropriated by Congress, or find legal justification for not spending it, as seen in earlier rescission efforts that returned $9 billion to the U.S. Treasury.
Meanwhile, USAID Deputy Administrator for Management and Resources Ken Jackson's recent tour of nine countries — including Belgium, Kenya, and the Philippines — to oversee mission closures, has drawn criticism from displaced staff who view the visits as poorly timed during their difficult transitions.
With many NGOs forced to restructure or face closure, some organizations are exploring mergers and partnerships to survive, with a new initiative led by Accountability Lab helping them pivot.
Devex Business Editor David Ainsworth discusses the latest developments in these stories with reporters Michael Igoe and Elissa Miolene.
Sign up to the Devex Newswire and our other newsletters.
About the author
Naomi Mihara
Naomi Mihara is an Associate Editor for Devex, working on creative and audiovisual projects. She has a background in journalism and international development, having previously served as an assistant correspondent for Japanese newspaper The Yomiuri Shimbun and as a communications officer for the International Organization for Migration in Southeast Asia. She holds a master’s degree in Multimedia Journalism from Bournemouth University.
