In January 2025, President Donald Trump signed Executive Order 14169, initiating a 90-day suspension of U.S. foreign development assistance to reassess its alignment with national interests. The abrupt halt has profoundly impacted numerous third-world countries and the organizations that rely heavily on U.S. aid for their operations.
The suspension encompasses a wide array of aid programs, affecting sectors such as health, education, and infrastructure.
While initial exemptions were made for emergency food assistance and military aid to key allies like Israel and Egypt, many critical programs faced immediate cessation.
Subsequent waivers allowed some humanitarian efforts to continue, but the lack of clarity and bureaucratic delays have left many organizations in operational limbo.
Faith-based organizations, which constitute a significant portion of U.S. aid partners, have been particularly hard-hit.
For instance, Catholic Relief Services and World Vision, two of the largest recipients of USAID funds, have had to halt lifesaving programs and lay off staff due to the funding freeze.
These organizations depend on U.S. government grants for up to half of their budgets, and the sudden suspension has jeopardized their ability to deliver essential services.
In Africa, the cessation of aid has disrupted programs combating HIV/AIDS, malaria, and tuberculosis. The President’s Emergency Plan for AIDS Relief (PEPFAR), which supports over 20 million people worldwide, faced operational challenges due to the funding pause.
Clinics in countries like Nigeria and Uganda, which rely on PEPFAR for antiretroviral medications, have reported shortages, putting patients at risk.
The financial implications of the aid suspension are staggering. In fiscal year 2023, the U.S. government disbursed approximately $71.9 billion in foreign aid, constituting about 1.2% of the federal budget.
A significant portion of this aid was directed toward low-income countries, where U.S. assistance accounted for over 20% of their total foreign aid receipts.
The sudden withdrawal of funds has created substantial budgetary gaps, equivalent to more than 3% of these nations’ Gross National Income (GNI), leading to economic shocks and destabilization.
The suspension has not only affected immediate humanitarian efforts but also undermined long-term development projects.
Infrastructure initiatives, educational programs, and economic development plans have been put on hold, eroding years of progress.
Moreover, the U.S. government’s decision has strained relationships with international partners and diminished its global standing as a reliable aid provider.
The suspension of U.S. foreign aid has had a profound and far-reaching impact on third-world countries and the organizations that serve them. The financial void left by this decision threatens the health, stability, and development of some of the world’s most vulnerable populations.
Mr. Yusuf Irshad is a Political analyst and Strategic Governance Expert.
