USAID freeze deepens Rohingya crisis, exacerbating ‘subhuman conditions’

The United States’ 90-day freeze on USAID programs is threatening critical services in Bangladesh's Rohingya refugee camps, where essential food, health, and sanitation programs face disruption and closing down. This latest blow comes as the humanitarian response in Cox's Bazar faces its lowest funding levels since 2018, compounded by Myanmar's escalating civil war and rising violence within the camps. With over a million refugees dependent on aid, the funding uncertainty is pushing an already fragile situation toward crisis. The USAID freeze is straining humanitarian operations, with Rohingya refugees and aid workers reporting the shutdown of several hospitals in the camps and potential disruptions to key health and water, sanitation, and hygiene programs. While Bangladesh's interim government led by Nobel laureate Muhammad Yunus has claimed that USAID will not pause its Rohingya funding, the Trump administration has yet to confirm this. While a memo signed by U.S. Secretary of State Marco Rubio mentions a humanitarian waiver, the impact of the USAID shutdown is already being felt in the camps, according to Rohingya refugees and aid workers. “Waste management is being hampered, gender-based violence programs are facing challenges, and the vaccination program is at risk,” Mizanur Rahman, Bangladesh’s refugee relief and repatriation commissioner, or RRRC, said. An escalating crisis Levels of funding for the humanitarian response in the camps in Cox’s Bazar prior to the U.S. announcement of an aid freeze were already declining. In 2023, due to reduced funding, the World Food Programme was forced to cut food assistance for Rohingya refugees twice. In March, the monthly food ration was reduced from $12 to $10 per person, followed by a further cut to $8 in June, worsening the food and nutrition situation. Around 90% of the refugee population lacked access to an adequate diet, with over 15% of children suffering from malnutrition — the worst level recorded since the 2017 influx. Despite food rations being restored to $12.50 in August 2024, that year the humanitarian joint response plan received its lowest year-on-year funding since 2018. These funding cuts happened as the situation in the camps has grown more complex, with the escalation of Myanmar’s civil war. The rebel Arakan Army’s capture of the entire border region with Bangladesh has led to the displacement of thousands more Rohingyas from the Rakhine state, further overcrowding the refugee camps in Cox’s Bazar. The rising tensions along the border have also stalled discussions on Rohingya repatriation, according to Rahman, pushing the prospect of a long-term solution for the dignified return of Rohingya refugees further down the line. Alongside declining funding and worsening food shortages, the refugee camps have seen a surge in criminal activities. Several violent groups operate within the camps, engaging in kidnapping, extortion, rape, and murder. In the first nine months of 2023, 66 people were reportedly killed, followed by 26 more in the first half of 2024. Many Rohingya refugees have joined forces with their former persecutor — the Myanmar military regime — to fight the Arakan Army in Rakhine, as the rebel group’s growing hostility toward the Rohingyas has led to further displacement. Meanwhile, the presence of fighters, trained by the military and militant groups alike, in refugee camps housing over a million people poses a serious security concern for aid workers and the host community, as dwindling aid deepens the desperation of the Rohingya people. USAID freeze adds strain on response While development partners in the camps have other funding sources, USAID finances key projects for many organizations, according to Rahman. “There is concern that some NGOs might wrap up their projects in the camps,” he added. Sahat Zia Hero, a Rohingya community volunteer with the International Organization for Migration and a photographer in the refugee camps of Cox’s Bazar, said the food assistance refugees receive is already barely sufficient at $12.50 per month. When rations shrink further, chaos and violence erupt in the camps. “The lack of food keeps people hungry and angry, fueling crimes, domestic abuse, quarrels, and a worsening mental health crisis,” Zia Hero said. The camps were already in a fragile state, he added, and if USAID halts its funding, it might be catastrophic for the community and opportunities for Rohingya volunteers like him might further shrink. “Our opportunities have diminished. New recruitments are rare, many long-time volunteers are out of work, payments have been reduced, and multiple projects have been canceled in recent months. Now, with five hospitals shutting down, many volunteers have lost their jobs. If schools close too, more volunteers will lose their earning opportunities,” he said. Development partners typically pay community volunteers working as teachers, health care assistants, and other roles a monthly sum. Rohingya refugees in Cox’s Bazar camps rely entirely on clinical care within the camps. Due to the U.S. administration’s decision, many will lose access to treatment for maternity and newborn care, leading to higher maternal and neonatal mortality, Rahman also stressed. Ro Yassin Abdumonab, another community worker, said he has seen women-focused programs, landslide risk reduction projects, WASH initiatives, and disability support efforts winding down. “People are worried. With fewer support programs, crimes will increase,” Abdumonab warned. ASM Suza Uddin, country director of Artolution, an NGO that uses community-based public art projects to promote healing, resilience, and social cohesion in the camps, emphasized that service providers themselves are also beneficiaries of the service as their salaries and livelihood depend on them. Highlighting the immediate impact of the USAID funding freeze, Uddin said, “I recently received notice that our funding has been suspended. I know at least 10 to 20 people who have already lost their jobs.” The uncertainty around USAID funding “Assistance for the Rohingya[s] who have taken refuge in Bangladesh will continue,” Shafiqul Alam, press secretary to Yunus, said after the Trump administration suspended U.S. foreign assistance programs. “The U.S. had confirmed they would continue food and nutritional support for the Rohingya community,” another government official later told BenarNews. To date, however, the U.S. has not made any public statement regarding funding for the Rohingya response. Devex’s request for comment from USAID has gone unanswered, and development partners in Bangladesh are in the dark. “We understand that some exceptions will be made, but have no specific information and are therefore not in a position to make any further comments at this stage,” UNHCR Bangladesh told Devex, adding: “While we are still assessing the impact of the new US administration’s decision, including possible exceptions, we are implementing a series of temporary precautionary measures to mitigate the impact of this funding uncertainty.” Several other development partners working in the camps said they also lack clarity on what exceptions, if any, will be made for the Rohingya response. Suza Uddin, for example, said there is no clarity on which USAID projects won’t have funding. “We do not yet know the full effects of this order or the associated waiver for the Rohingya refugee response. We are closely analyzing the situation and what it means for displaced and crisis-affected people around the world,” Wendy McCance, country director at the Norwegian Refugee Council, told Devex. ‘A major setback’ Funding for the Rohingya joint response plan has steadily declined, from $689.6 million in 2021 to $548.9 million in 2024 — falling far short of the $852.3 million appeal. This left 35.6% of requirements unmet, compared to 29.2% in 2023. Development partners cite donor fatigue and competing global crises as key factors. “Multiple humanitarian emergencies are unfolding worldwide. … As a result, donor priorities have slightly shifted toward other crises,” McCance said. The “protracted nature” of the crisis has led to waning international attention, another development partner added, speaking anonymously. The funding shortfall has had severe consequences for Rohingya refugees, host communities, and overall humanitarian operations — making the blow of the USAID freeze even harder. “This is a major setback for the Rohingya response” overall, Rahman said. While rising food insecurity has increased malnutrition risks, particularly among children, limited funding has also strained health care services and widened educational gaps for Rohingya children and youth, leaving them vulnerable to exploitation, child labor, and child marriage. Development partners, on the other hand, face operational constraints and programmatic limitations. “Insufficient funding hampers investment in disaster preparedness, increasing vulnerability to climate change-induced natural disasters. In 2024 alone, Rohingya camps in Cox’s Bazar experienced major disasters, including fires, severe flooding, and landslides—one of which claimed six lives. The December fire alone left thousands homeless, underscoring the persistent risks,” a spokesperson for a development organization that receives USAID funding told Devex on condition of anonymity. The effect of the news on this funding freeze also affects community members beyond the immediate suspension of activities, dashing hopes and dignity. “How humanitarian workers treat the community or beneficiaries depends on whether there is funding or not. The phrase ‘we don’t have funds’ itself sends a powerful message that humiliates the community,” Suza Uddin said. “I know a group of Rohingyas who were supposed to resettle in the USA. They had even spent their last savings preparing for the trip, but now they’ve heard their flight has been cancelled.” A bleak outlook NRC’s McCance said that while sustaining funding for the Rohingya community remains a key challenge, security and safety conditions in the camps are evolving, with camp residents facing ongoing difficulties. “Rohingya youth continue to face an uncertain future, which increases the risk of negative coping mechanisms. The lack of income-generating opportunities for young people in the camps remains a critical issue,” McCance said. The camps in Cox’s Bazar are vulnerable to monsoon floods, cyclones, and fire incidents that damage shelters made of bamboo and tarpaulin. Limited funding has hindered efforts to repair and reinforce shelters, leaving thousands at risk of further displacement and exposure to harsh weather. Rahman warned that further cuts to Rohingya aid would leave the community members without basic support. Being forced “to live in subhuman conditions here … will have long-term consequences,” he stressed. “This will affect their health, economy, and the environment, and harm peaceful co-existence with the host community,” he added. Kun Li, head of partnerships, communication, and reports at WFP Bangladesh, said that the organization is in “constant contact with key stakeholders in the US government.” “In a world where 343 million people face severe hunger, WFP’s work has never been more important. Food security is national security. We will continue to advocate for those most in need and work closely with all our partners, including the US, to ensure life-saving food assistance is available where and when needed,” Li said.